Chapter 7-Q1

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Monarch Institute *

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FINANCIAL

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Accounting

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May 24, 2024

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Feedback You have not correctly answered the requisite number of questions. Please any questions. Question 1 Incorrect Mark 0.00 out of 1.00 Flag question Question text Under accrual accounting, the net profit (or loss) for the year will not equal the cash and cash equivalents at year end. Which one of the following can be a cause for this: Select one: a. Depreciation charges b. Receipts from customers c. Proceeds from the sale of plant and equipment Incorrect d. Dividends paid. Question 2 Correct Mark 1.00 out of 1.00 Flag question Question text Which one of the following would be classified as a Cash Flow from Operating Activities: Select one: a. Repayment of bank loan b. Income tax payment Correct c. Purchase of supplies on credit d. Proceeds from sale of fixed asset. Question 3 Correct Mark 1.00 out of 1.00 Flag question Question text Which one of the following would be classified as a Cash Flow from Investing Activities: Select one:

a. Increase in accumulated depreciation b. Draw down on loan from bank c. Purchase of new plant and machinery paid by cheque Correct d. Proceeds received from issues of shares. Question 4 Correct Mark 1.00 out of 1.00 Flag question Question text Which one of the following would be classified as a Cash Flow from Financing Activities: Select one: a. Payments to suppliers b. Increase in tax payable c. Draw down on loan from bank Correct d. Finance company pay dealer for purchase of new delivery van. Question 5 Correct Mark 1.00 out of 1.00 Flag question Question text The statement of cash flows provides information about an entity’s source and uses of cash and its cash position. Select one: True Correct False Question 6 Correct Mark 1.00 out of 1.00 Flag question Question text The Accounting Standard AASB107 requires that interest received to be disclosed in the Statement of Cash Flows. Select one:

True Correct False Question 7 Incorrect Mark 0.00 out of 1.00 Flag question Question text The Accounting Standard AASB107 requires that the tax liability to be disclosed separately in the Statement of Cash Flows. Select one: True Incorrect False Question 8 Correct Mark 1.00 out of 1.00 Flag question Question text The information included in the income statement and the statement of financial position can be used to prepare a statement of cash flows. Select one: True Correct False Question 9 Correct Mark 1.00 out of 1.00 Flag question Question text The Accounting Standard AASB107 states that entities are encouraged to report cash flows from operating activities using the direct method. Select one: True Correct False Question 10 Correct

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Mark 1.00 out of 1.00 Flag question Question text The indirect method of preparation of statement of cash flows discloses individual amounts for cash received and cash paid. Select one: True False Correct Question 11 Incorrect Mark 0.00 out of 1.00 Flag question Question text When using the indirect method, it is necessary to remove the non-cash items when preparing a statement of cash flows from the information extracted from the financial reports which were prepared using accrual accounting concept. Select one: True False Incorrect Question 12 Correct Mark 1.00 out of 1.00 Flag question Question text If the statement of financial position of an entity has trade debtors account balance, adjustments will need to be made to remove the non-cash transactions from the account. Select one: True Correct False Question 13 Incorrect Mark 0.00 out of 1.00

Flag question Question text In a statement of cash flows, the transfers of profits to or from reserves must also be disclosed as cash flows from financing activities. Select one: True Incorrect False Question 14 Correct Mark 1.00 out of 1.00 Flag question Question text The Accounting Standard AASB107 requires, on the statement of cash flows, the disclosures of cash flows received and paid from _________ activities, _____________ activities and ___________ activities be included in the Statement of Cash Flows.. Select one: a. operating; investing; financing Correct b. cash-in; cash-out; non-cash c. selling; buying; other d. cash; credit; banking Question 15 Correct Mark 1.00 out of 1.00 Flag question Question text Cash holdings in a statement of cash flow are defined as ___________ and ____________ equivalents Select one: a. cash and cash Correct b. current and non-current c. cash and credit d. short term and long term

Question 16 Incorrect Mark 0.00 out of 1.00 Flag question Question text A statement of cash flows can be prepared by using an entity’s ___________ records. Select one: a. accounting b. cash Incorrect c. banking d. sales Question 17 Correct Mark 1.00 out of 1.00 Flag question Question text Adjustments will need to be made to remove the effects of non-cash transactions when the income statement and statement of financial position are prepared on _____________ accounting basis. Select one: a. accrual Correct b. cash c. non-cash d. cost Question 18 Correct Mark 1.00 out of 1.00 Flag question Question text The Accounting Standard AASB107 requires that cash flows from operating activities be reported by using either ____________method or __________ method. Select one: a. direct or indirect Correct

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b. cash or non-cash c. real or unreal d. future value present value Question 19 Correct Mark 1.00 out of 1.00 Flag question Question text Cash flows from _________ activities are primarily derived from the principal revenue-producing activities of the entity. Select one: a. operating Correct b. financing c. investing d. budget Question 20 Correct Mark 1.00 out of 1.00 Flag question Question text Only expenditures that result in a recognised asset in the statement of financial position are eligible for classification as ___________ activities. Select one: a. investing Correct b. operating c. financing d. budget Question 21 Incorrect Mark 0.00 out of 1.00 Flag question Question text

Which of the following does AASB107 require to be disclosed in the Statement of Cash Flows? Select one: a. Transfers to or from the retained profits Incorrect b. Bonus shares issues c. Investing activities d. Transfers to the reserve accounts Question 22 Correct Mark 1.00 out of 1.00 Flag question Question text Which of the following is not defined as cash equivalent? Select one: a. Term Deposit (for 11 months) Correct b. Short-term investment c. Highly liquid investment d. Deposits at-call Question 23 Correct Mark 1.00 out of 1.00 Flag question Question text Which of the following items is a finance activity? Select one: a. Purchase of investment b. Receipt of dividend c. Purchase of goods on credit d. Borrowing repaid Correct Question 24 Incorrect Mark 0.00 out of 1.00

Flag question Question text Which of the following items is an operating activity? Select one: a. Proceeds from the sale of plant and equipment Incorrect b. Proceeds from share issues c. Dividend received d. Dividend paid to shareholders Question 25 Correct Mark 1.00 out of 1.00 Flag question Question text Which of the following accounts in the statement of financial position indicate that accrual amounts, rather than cash amounts, will appear on the income statement? Select one: a. Prepaid expenses Correct b. Property, plant and equipment c. Asset revaluation reserve d. Retained profits Question 26 Incorrect Mark 0.00 out of 1.00 Flag question Question text When preparing a reconciliation of cash flows from operating activities to operating profit/loss, changes in the opening and closing balances of assets and liabilities have these consequences: Select one: a. Increase in assets or liabilities is a cash inflow; Decrease in assets or liabilities is a cash outflow Incorrect b. Increase in assets or a decrease in liabilities is a cash outflow; Decrease in assets or increase in liabilities is a cash inflow

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c. Decrease in assets or a increase in liabilities is a cash outflow; Increase in assets or decrease in liabilities is a cash inflow d. Increase in assets or a decrease in liabilities is a cash inflow; Decrease in assets or increase in liabilities is a cash outflow Question 27 Correct Mark 1.00 out of 1.00 Flag question Question text All inventories are purchased on credit. On the basis of the following accounting records information, the amount paid to the trade creditors is: Select one: a. $468 000 b. $470 000 c. $464 000 Correct d. $142 000 Finish review Skip Quiz navigation Quiz navigation Question 1 This page Question 2 This page Question 3 This page Question 4 This page Question 5 This page Question 6 This page Question 7 This page Question 8 This page Question 9 This page Question 10 This page Question 11 This page Question 12 This page Question 13 This page Question 14 This page Question 15 This page Question 16 This page Question 17 This page Question 18 This page Question 19 This page Question 20 This page Question 21 This page Question 22 This page Question 23 This page Question 24 This page Question 25 This page Question 26 This page Question 27 This page Finish review © 2022 Monarch Institute