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Practice Questions
Test your understanding with targeted questions related to the topic.
Question 1
Easy
What are the three main components of the Cash Flow Statement?
💡 Hint: Think about the business activities.
Question 2
Easy
Define Operating Activities.
💡 Hint: Consider what businesses do to make money.
Practice 4 more questions and get performance evaluation
Interactive Quizzes
Engage in quick quizzes to reinforce what you've learned and check your comprehension.
Question 1
What are the three activities classified in a Cash Flow Statement?
- Operating
- Investing
- Financing
- Generating
- Expenses
- Equity
- Income
- Assets
- Liabilities
💡 Hint: Recall the fundamental activities of cash flow.
Question 2
True or False: The Direct Method is commonly used for calculating cash flow from operating activities.
- True
- False
💡 Hint: Think about which method is mentioned more frequently.
Solve and get performance evaluation
Challenge Problems
Push your limits with challenges.
Question 1
You have a business with a net profit of $200,000, depreciation of $30,000, an increase in accounts receivable of $15,000, a decrease in accounts payable of $10,000, and taxes paid of $40,000. Calculate the Net Cash Flow from Operating Activities.
💡 Hint: Don’t forget to adjust for all the components mentioned.
Question 2
If a company's financing cash flow shows significant inflows and outflows consistently over several periods, what could this indicate about its financial strategies?
💡 Hint: Think about financing strategies companies employ.
Challenge and get performance evaluation