(b) An interim dividend of Rs. Prohibited Content 3. The amortization of the cost of an intangible asset. The proceeds from the sale of equipment formerly used in the business. Question 11 to 20 = Cash flows from Investing Activities Question 21 to 26 = Cash flows from Financing Activities ANSWER TO SECTION B: TRUE OR FALSE 1. T 5. Proceeds from the sale of equipment used in the business. Basic 1. It not only provides all the essential material to succeed in learning accounting and finance, but also explains all the relevant details that make the difference when you need to understand the complexity of accounting systems. Disclaimer 8. An increase in the current liability Income Taxes Payable. (d) Depreciation charged on machinery was Rs. An increase in the balance in Accounts Payable. The loss (computed as proceeds minus the book value) appeared on the income statement and reduced the company's net income. Report a Violation 10. 35,000. 50,000 and Debtors Rs. T . Account Disable 11. 1, 00,000, Stock Rs. - Theirry F. Free Cheat Sheet for Financial Statements (PDF). An increase in the current liability Warranty Liability. Changes in, Amortization of the cost of an intangible asset is added back to net income in the operating activities section because the company's net income was reduced by the amortization expense shown on the income statement; however, the company's, The exchange or conversion of bonds into common (or preferred) stock is a, Dividends decrease the company's amount of, The proceeds received by the company for the new stock being issued will increase the company's. A decrease in the current liability Income Taxes Payable. Problem 1: The bank balance of a business firm has increased during the last financial year by Rs.1,50,000. However, the company's cash did not decrease. Content Filtration 6. Terms of Service 7. It purchased fixed assets for […] Gain on the Sale of Automobile formerly used in the business. The answers are also given for your reference. Prepare Cash Flow Statement of Suryan Ltd. from the following: (a) During 2006, the business of a sole trader was purchased by issuing shares for Rs. The proceeds from issuing additional Common Stock. T 2. Changes in, The gain (computed as proceeds minus the book value) appeared on the income statement and increased the company's net income. The major cash flow statement questions are considered as quite helpful when it comes to getting ample info about it. As a communication trainer and business coach, I had to pick up the language of accounting in no time in order to communicate more effectively with my clients. 20,000, Machinery Rs. 1, 00,000, Stock Rs. T 7. Get help with your Cash flow statements homework. Choose your answers to the questions and click 'Next' to see the next set of questions. Image Guidelines 4. You can learn more about our easy way to study accounting. A corporation reported the following information for the past year: Difference between Cash Flow and Income Statement. A decrease in the current asset account Prepaid Insurance. However, the entire, The new delivery truck to be used in the business is a long-term asset. Proceeds from the issuance of Preferred Stock. We now offer 10 Certificates of Achievement for Introductory Accounting and Bookkeeping. T 6. 2, 00,000. For a recent year a corporation's financial statements reported the following: A corporation reported the following information for the past year: Watch our Financial Statements Seminar Videos, Earn our Cash Flow Statement Certificate of Achievement. Funds flow/cash flow statement questions and answers on topics like need for Fund Flow Statement & its limitations, basic principles of preparing a Funds Flow Statement etc. 35,000 Income tax was paid during 2004. For multiple-choice and true/false questions, simply press or click on what you think is the correct answer. However, the final answer for each problem is found without rounding during any step in the problem. ), Financing activities involve long-term liabilities and stockholders equity. The company does not have any cash equivalents. Purchase of Treasury Stock (company's own stock). Assuming these are the only facts, what amount will the corporation report as the Net Cash Provided by Operating Activities on the cash flow statement? The loss must be added back to the net income amount appearing in the, Dividends cause stockholders' equity and cash to decrease. "AccountingCoach PRO is an exceptional service. Prepare Cash Flow Statement of Suryan Ltd. from the following: ADVERTISEMENTS: Additional Information: ADVERTISEMENTS: (a) During 2006, the business of a sole trader was purchased by issuing shares for Rs. F 8. All rights reserved.AccountingCoach® is a registered trademark. (c) Rs. (Accordingly depreciation expense is referred to as a non-cash expense. 30,000. If you have difficulty answering the following questions, learn more about this topic by reading our Cash Flow Statement (Explanation). The entire proceeds from the sale of a long-term asset is reported under Cash from Investing Activities. Error: You have unsubscribed from this list. ADVERTISEMENTS: Here is a compilation of top nine problems on cash flow statements along with its relevant solutions. For multiple-choice and true/false questions, simply press or click on what you think is the correct answer. The proceeds from the sale of the automobile in Item #5. A positive effect could also be thought of as a source of cash, an increase in cash, or a positive amount on the cash flow statement. The certificates include Debits and Credits, Adjusting Entries, Financial Statements, Balance Sheet, Income Statement, Cash Flow Statement, Working Capital and Liquidity, Financial Ratios, Bank Reconciliation, and Payroll Accounting. The exchange/conversion of long-term bonds into common stock. Questions for freshers and experienced for bank interview, competitive exams, placement interview, finance interview, manager interview, university exams CA, CS, ICWA etc.