Chapter 13 - Statement of cash flows

Question 1

What does the statement of cash flows show?

Answer 1

Inflow and outflow of cash of an entity during the period

Question 2

What does the three groups of a cash flow statement?

Answer 2

Cash flow from operating activities
Cash flow from investing activities
Cash flow from financing activities

Question 3

What is cash?

Answer 3

Comprises cash on hand and at bank including overdrafts and demand deposits

Question 4

What is cash equivalents?

Answer 4

Short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value

Question 5

What are operating activities?

Answer 5

Principal revenue-producing activities of the enterprise and other activities that are not investing or financing activities

Question 6

What are investing activities?

Answer 6

The acquisition and disposal of long-term assets and other investments not included in cash equivalents

Question 7

What are financing activities?

Answer 7

Activities that result in changes in the size and composition of the contributed equity and borrowings of the entity

Question 8

What does cash flows from operating activities include?

Answer 8

Cash generated from operations
Interest paid
tax paid

Question 9

What are some cash inflow examples of financing activities?

Answer 9

Proceeds from the issue of shares
Proceeds from the issue of loans

Question 10

What are some cash outflow examples of financing activities?

Answer 10

Repayments of loans
Dividends paid