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Accounting Cash Flow Quiz

Accountants are lifelong students. The weekly quizzes are open
to everyone in the wonderful field of accounting, business
and the study of accounting. Good luck!

This week's quiz brought to you by:
Barbara W. Scofield, PhD, CPA - Associate Professor of Accounting
and Director of the Financial Accounting Concentration
University of Dallas
Irving, Texas



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1 - Which of the following is classified as an operating cash flow?
Cash paid for taxes
Cash paid for land
Cash paid in dividends
Cash paid to repay debt

2 - Which of the following is classified as an operating cash flow?
Cash received from sale of plant assets
Cash received in interest
Cash received when borrowing
Cash received from selling an investment.

3 - Which of the following is classified as an investing cash flow?
Cash paid for inventory
Cash paid for equipment
Cash paid to repurchase the company's own stock
Cash paid in interest

4 - Which of the following is classified as a financing cash flow?
Cash paid in interest
Cash paid to acquire a company
Cash paid for a vehicle
Cash paid to repay the principal of a note

5 - Which of the following is classified as a financing cash flow?
Cash received from borrowing
Cash received as payments on a sales type lease
Cash received as proceeds from the sale of an equity investment
Cash received as proceeds from spinning off a subsidiary.

6 - An indirect and a direct statement of cash flows differ in the following way:
Different net operating cash flows reported.
The three cash flow sections appear in a different order.
Only the direct statement of cash flows includes a disclosure of cash received from customers.
Only the direct statement of cash flows includes a disclosure of cash paid in taxes.

7 - Cash flows from customers are affected by:
Changes in Prepaid Expenses
Changes in Accounts Payable
Changes in Inventory
Changes in Accounts Receivable

8 - Cash flows to suppliers are affected by:
Changes in Accounts Payable
Changes in Accounts Receivable
Changes in Unearned Revenue
Changes in Salary Payable

9 - ABC Company pays $1100 to its lender in a payment that includes both principal and interest. In which section(s) is this cash flow reported?
Operating and Financing
Operating and Investing
Investing and Financing
Operating, Investing, and Financing

10 - ABC pays $1000 for current federal income taxes, which includes a tax benefit of $400 because an employee exercised his compensatory stock options during the period. This option exercise reverses an accrued deferred tax asset of $100 recorded at the time of grant. In which section(s) is this cash flow reported?
Operating
Financing
Operating and Financing
Operating, Investing, and Financing

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