Practice - Common Questions in Exams
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Practice Questions
Test your understanding with targeted questions
What is a cash flow statement?
💡 Hint: Think about the purpose of tracking cash movements.
Name one objective of preparing a cash flow statement.
💡 Hint: Consider how cash affects obligations.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What is the primary purpose of a cash flow statement?
💡 Hint: Focus on cash rather than profit.
True or False: The Direct method is the most commonly used to prepare cash flow statements.
💡 Hint: Think about how businesses operate.
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Challenge Problems
Push your limits with advanced challenges
A company has the following data: Net profit = $100,000; Depreciation = $20,000; Increase in Debtors = $10,000; Decrease in Creditors = $5,000; Tax paid = $25,000. Calculate the Net Cash Flow from Operating Activities.
💡 Hint: Remember to adjust for non-cash items and changes in working capital.
Create a cash flow statement using the following data: Begin Cash = $10,000; Cash from Operations = $15,000; Cash used for Investing = $8,000; Cash from Financing = $2,000. What will be the ending cash balance?
💡 Hint: Sum up all the cash movements carefully.
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