Financial Management - exercises, quizzes, Quizzes of Financial Management

Download Financial Management - exercises, quizzes and more Quizzes Financial Management in PDF only on Docsity! The primary purpose of a statement of cash flows is E] © Multiple choice To provide relevant information about cash receipts and cash payments of anentity.. To help investors, creditors and other users to assess the entity's ability to generate positiv.. To disclose separately noncash investing and financing transactions To assess the ability of the entity to pay dividends to the shareholders Add option or add "Other" Answer key (1 point) a WwW Required An entity shall prepare a statement of cash flows as & © Muttiple choice Supplementary financial statements Notes to financial statement Supporting schedule for the amount appearing as ash and cash equivalent Integral part of the entity's basic financial statements wv Add option or add "Other" Answer key (1 point) ao Required I I x xX XX xX Cash flows in the statement of cash flows are E] Inflows of cash and cash equivalents Outflows of cash and cash equivalents Inflows and outflows of cash Inflows and outflows of cash and cash equivalents Add option or add “Other” Answer key (1 point) Oo Cash receipts from royalties, fess, commissions and = + ) other revenues are Cash outflows from operating activities Cash inflows from operating activities Cash inflows from investing activities Cash outflows from financing activities Add option or add “Other” Answer key [11 point) ia © Multiple choice W @ Multiple choice Ww Required Required I ] x & KX XX x %X& XxX XxX  In astatement of cash flows, dividend payment to »~ & @ muhiple choice + - ~ Operating Activities Investing Activities Financing Activities v x -* XK XxX Either Operating or Financing Activities Add option or add “Other” Answer key (1 point) a wW Required ] Cash flows arising from the purchase and sale of » & © Muttiple choice ¥ . . sei + Operating Activiites vw Investing Activities Financing Activities x & %*& XX Either Operating or Investing Activities Add option or add "Other" Answer key (1 point) oO w Required An entity shall report cash flows from operating ~« @ activities usina Direct Method Indirect Method Either Direct or Indirect Method s None of the above Add option br add “Other™ Answer key (1 point) a @©® Multiple choice 1 Required I x xX XK XK An entity shall report separately cash flows arising - @ from i - fi , ; ~ Direct Method Indirect Method Either Direct or Indirect Method Neither Direct nor Indirect Method Add option or add “Other” Answer key (1 point) Oo © Multiple choice W vw Required I x -*® «XK X These are the principal-revenue producing - a: . ~ ‘Operating activities Investing activities Financing activities None of the above Add option or add "Other" Answer key (1 point) J @©® Multiple choice 0 v Required ] x xX xX x Bank borrowings are generally considered Operating activities Investing activities Financing activities Borrowing activities Add option or add “Other" Answer key (1 point) J @ Multiple choice w Required I Choose correct answers: In a statement of cash flows, if used equipment is sold at a gain, the amount shown as a cash flow from investing activities equals the carrying amount of the 1 points equipment @ plus the gain v plus the gain minus accumulated depreciation minus the accumulated depreciation no addition or subtraction [E] Add answer feedback Done In a statement of cash flows using indirect method, = GJ @® Muttiple choice ~ P ; ; ¥ Reported as an outflow and inflow of cash x Reported as an outflow of cash x Deduction from net income a x Added to net income x Add option or add “Other” Answer key (1 point) a Ty Required J 3  ‘Choose correct answers: What is the net cash provided by operating activities for the current year using 1 points direct method The following information pertains to Lax Company during the current year. Dividend received 500,000 Dividend paid 1,000,000 Cash received from customers 9,000,000 Proceeds from issuing share capital 1,500,000 Interest received 200,000 Proceeds from sale of long term investments 2.000.000 Cash paid to suppliers and employees 6,000,000 Interest paid on long term debt 400,000 Income taxes paid 300,000 Cash balance, January 1 1,800,000 @ 3,000,000 we 3,300,000 2,700,000 2,000,000 [B) Add answer feedback Done Choose correct answers: Question i = points Fragile Company had the following cash flows during the current year: Cash receipts from issuance of ordinary shares 4,000,000 Cash receipts from customers 2.000.000 Cash receipts from dividends on long-term investments 300,000 Cash receipts from repayment of loan made to another entity 2,200,000 Cash payments for wages and other operating expenses 1,200,000 Cash payments for insurance 100,000 Cash payments for dividends 200,000 Cash payments for taxes. 400,000 Cash payment to purchase land 800,000 What is the net cash provided by operating activities? @ 600,000 v 400,000 300,000 200,000 [E] Add answer feedback Done Choose correct answers: Question 1 points Kresley Company provided the following account balances for the preparation of statement of cash flows for the current year: January | December 31 Accounts receivable 115,000 145,000 Allowance for uncollectible accounts 4,000 5,000 Prepaid rent expense 62,000 41,000 Accounts payable 97,000 112,000 Kresley's net income for the year is P750,000. What is the net cash provided by operating activities for the current year? 727,000 743,000 755,000 @ 757,000 ~ [E] Add answer feedback Done  Choose correct answers: Question i = points Sun Company provided the following data for the preparation of the statement of cash flows for the current year: Increase in accounts receivable 300,000 Decrease in income tax payable 170,000 Depreciation 1,000,000 Net income 250,000 Gain on sale of equipment 440,000 Loss on sale of building 210,000 Using the indirect method, what amount should be reported as cash flow from operating activities? 780,000 700,000 880,000 @ 550,000 vw [EB] Add answer feedback Done Choose correct answers: Question The following selected information is provided by Albay Company. Accounts receivable, January 1, net of allowance of P100,000 Accounts receivable, December 31, net of allowance of P300,000 Sales for the current year — all on credit Uncollectible accounts written off during the year Recovery of accounts written off Bad debt expense for the year Cash expenses for the year Net income for the year 1,200,000 1,600,000 8,000,000 70,000 20,000 250,000 5,250,000 2,500,000 What is the net cash flow from operating activities? © 2,100,000 2,350,000 2,080,000 2,150,000 [BE] Add answer feedback i > points Done Choose correct answers: What is the net income for the current year I = points Bumper Company's statement of cash flows for the current year shows cash flow from operations of P1,840,000. The following items also appear on the statement of financial position and income statement: Depreciation expense 400,000 Accounts receivable increase 120,000 Inventory decrease 280,000 Accounts payable decrease 80,000 2,320,000 @ 1360,000 we 1,440,000 1,840,000 [EE] Add answer feedback Done Question © Blacktown Company had the following account balances for the current year: December 31 January 1 Accounts payable 500,000 650,000 Inventory 300,000 250,000 Accounts receivable 800,000 900,000 Prepaid expenses 400,000 600,000 * All purchases of inventory were on account. * Depreciation expense of P900,000 was recognized during the year. « Equipment was sold during the year and a gain of P300,000 was recognized. Blacktown provided the following cash flow information for the current year: Cash collected from customers 9,500,000 Cash paid for inventory (4,100,000) Cash paid for other expenses (1,400,000) Cash flow from operations 4,000,000 What is the net income for the current year? 3,400,000 3,000,000 3,300,000 3,900,000 E}) Add answer feedback Choose correct answers: Question i > points Mandarin Company had the following transactions for the year ended December 31, 2021. Acquisition of 50% XYZ share capital for cash (cash was borrowed from the bank) 2,250,000 Issuance of 30,000 preference shares of P100 par value for land having fair value of 4,000,000 Issuance of 5,000 12% P1.000 face value bonds for cash4, 900,000 Payment of a short-term bank loan. 1,500,000 Sale of investment securities for cash 9,950,000 Purchase of patent for cash. 2,750,000 Increase in customer deposits 1,100,000 What is the net cash provided by investing activities? 3,700,000 © 4,950,000 oS 5,950,000 3,850,000 (E) Add answer feedback Done Choose correct answers: Question i > points Roe Company provided the following balances: 2020 2021 Machinery 2,500,000 3,200,000 Accumulated depreciation 1,020,000 1,200,000 Loss on sale of machinery 40,000 During 2021, Roe sold for P260,000 a machine with original cost of P400,000, and purchased an item of machinery. What is the depreciation of machinery for 2021? 180,000 240,000 © 280,000 vw 320,000 [E] Add answer feedback Done Choose correct answers: Question i > points Zodiac Company had the following activities for 2021: Payment for the retirement of bonds payable 3,700,000 Payment in 2021 of cash dividend declared in 2020 300,000 Carrying amount of convertible preference shares converted into ordinary shares 600,000 Proceeds from sale of treasury shares 500,000 What is the net cash used in financing activities? 4,000,000 2,900,000 © 3,500,000 vw 3,600,000 [E] Add answer feedback Done ‘Choose correct answers: Question i = points The following information has been extracted from the accounting records of Nellie Company at the end of each year: 2021 2020 Borrowings 2,500,000 800,000 Share capital 3,500,000 2,000,000 Retained earnings 950,000 750,000 Borrowings of P300,000 were repaid during 2021 and new borrowings include P200,000 vendor financing arising on the acquisition of a property. The movement in retained earnings comprises profit for 202| of P900,000, net of dividends of P700,000. The movement in share capital arose from issuance of share capital for cash during the year. What is the amount of financing net cash inflows? 2,400,000 2,200,000 2,500,000 © 2,300,000 vw [E] Add answer feedback Done