Professional Documents
Culture Documents
to accompany
Applying International
Accounting Standards
by
Alfredson, Leo, Picker, Pacter & Radford
Prepared by
Victoria Wise
-2-
What is the amount of the cash flows in relation to financing activities of Warner Limited for the
reporting period?
A
B
C
D
$155 000;
$155 000;
$212 000;
$212 000.
Question 2
The following cash flow activities are regarded as investing cash flows:
A
B
C
D
Question 3
Brett Limited had a net profit after tax of $850 000 for the financial year. Included in this profit
was:
Depreciation expense of $120 000
Gain on sale of Investments of $28 000
Also, Accounts Receivable increased by $39 000 and Inventories decreased by $12 000. The
cash flow from operating activities during the year was:
A
B
C
$785 000;
$731 000;
$915 000;
-3D
$969 000.
Question 4
During the financial year Marina Limited had sales of $720 000. The beginning balance of
Accounts receivable was $103 000, and the ending balance was $139 000. Bad debts amounting
to $34 000 were written off during the period. The cash receipts from customers during the year
amounted to:
A
B
C
D
$718 000;
$650 000;
$790 000;
$722 000.
Question 5
During the financial year, Cresswell Limited had a Cost of Sales amounting to $260 000.
Beginning and ending balances were:
Inventory
Accounts Payable
Beginning balance
$46 000
$18 000
Ending balance
$55 000
$26 000
A discount of $2 000 for prompt payment was received. The amount of cash paid for goods
purchased during the year was:
A
B
C
D
$259 000;
$263 000;
$275 000;
$279 000.
Question 6
Katsis Limited had the following cash flows during the reporting period:
-4-
A
B
C
D
$239 100;
$269 100;
$256 600;
$211 100.
Question 7
At balance sheet date, Dim Limited had the following net balance from cash flows:
Operating activities, $53 440;
Investing activities, $45 230;
Financing activities, $(47 860).
If the company had an ending balance of cash amounting to $107 310, what was the comparative
ending balance of cash for the previous year?
A
B
C
D
$(39 220);
$163 380;
$56 500;
$158 120.
Question 8
When presenting the proceeds from the acquisition and disposal of subsidiaries, IAS 7 Cash
Flow Statements, requires that the aggregate cash flows:
A
B
C
D
Question 9
In respect to both acquisitions and disposals of investments in subsidiaries, IAS 7 Cash Flow
Statements, requires that an entity should disclose, in aggregate, the following:
I.
II.
III.
IV.
-5A
B
C
D
Question 10
Which of the following items would be presented in a cash flow statement?
A
B
C
D
Question 11
The following item would not appear in a cash flow statement:
A
B
C
D
Question 12
IAS 7 Cash Flow Statements, requires that investing and financing transactions that do not
require the use of cash or cash equivalents should be:
A
B
C
D
-6-
ANSWERS
1
10
11
12