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PAS 7 Statement of Cash Flows: Quiz

The document provides a quiz on key concepts related to the statement of cash flows. It asks questions about how different types of cash and cash equivalents would be reported on the statement of financial position. It also asks how different types of cash flows, such as acquiring equipment through issuing stock or receiving cash dividends, would be classified and reported within the statement of cash flows. The quiz tests the reader's understanding of the purpose of the statement of cash flows, which is to show the historical changes in cash and cash equivalents during a period.

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Hassanhor Guro Bacolod
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9K views

PAS 7 Statement of Cash Flows: Quiz

The document provides a quiz on key concepts related to the statement of cash flows. It asks questions about how different types of cash and cash equivalents would be reported on the statement of financial position. It also asks how different types of cash flows, such as acquiring equipment through issuing stock or receiving cash dividends, would be classified and reported within the statement of cash flows. The quiz tests the reader's understanding of the purpose of the statement of cash flows, which is to show the historical changes in cash and cash equivalents during a period.

Uploaded by

Hassanhor Guro Bacolod
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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PAS 7 Statement of Cash Flows

QUIZ:

1. Entity A had the following balances at December 31, 20x1:


Cash in checking account 35,000
Cash in 90-day money market account 75,000
Treasury bill, purchased 12/1/x0, maturing 5/31/x2 150,000
Treasury bill, purchased 12/1/x1, maturing 2/28/x2 200,000

How much cash and cash equivalents is reported in Entity A’s December 31, 20x1 statement of
financial position?
a. 110,000 c. 310,000
b. 235,000 d. 460,000

2. Entity A acquires equipment by issuing shares of stocks. How should Entity A report the
transaction in the statement of cash flows?
a. Operating activities
b. Investing activities
c. Financing activities
d. Not reported

3. Entity A, a financial institution, received cash dividends from its investments in marketable
securities during the year. How will the dividends be presented in Entity A’s statement of cash
flows?
a. as investing activity
b. as operating activity
c. as financing activity
d. a or b

4. Which of the following statements best describes a statement of cash flows?


a. The statement of cash flows is also called the statement of activities.
b. The statement of cash flows shows information on an entity’s assets, liabilities and equity.
c. The statement of cash flows shows information on an entity’s income and expenses during
the period.
d. The statement of cash flows shows historical changes of cash and cash equivalents during
the period.

5. Which of the following is presented under the investing activities section of a statement of cash
flows?
a. Collection of accounts receivable
b. Cash purchases of inventories
c. Purchase of equipment through cash
d. Issuance of share capital through cash
“Trust in the Lord with all your heart and lean not on your own understanding; in all your ways acknowledge
him, and he will make your paths straight.” (Proverbs 3:5-6)
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