1. On a Cash Flow Statement, Operating activities include: A. Establishing a lin
ID: 2657687 • Letter: 1
Question
1. On a Cash Flow Statement, Operating activities include: A. Establishing a line of credit. B. Decreasing Accounts Payable. C. Short Term Debt repayment D. Purchasing a company 2. The Indirect Method of calculating Cash Flow: A. Begins with Net Income. B. Begins with Revenue. C. Shows cash collections from customers. D. Is used much less frequently than the Direct Method. 3. Which of the following is an "Auction" market A. NASDAQ NMS. B. OTC Bulletin Board. C. American Stock Exchange. D. Pink Sheets. On December 31, 2011, Inventory for Company X was $30,000. On December 31, 2012 the Inventory amount was $15,000. During 2012, the change in Inventory represented: 4. A. A $15,000 Operating Outflow B. A $15,000 Operating Inflow. C. A $45,000 Operating Inflow. D. A $45,000 Operating Outflow. 5. The "Float" of a company's stock represents: A. Total shares not held by Officers and Directors. B. Total shares outstanding and available for trading by the public. C. Total shares outstanding and held by Institutions. D. The average daily volume of trading in a company's common shares.Explanation / Answer
1. On a cash flow statement , Operating activities include decreasing accounts payable.
Hence, correct option is (B)
Short term debt repayment is a financing activity and purchasing a company is an investing activity.
2. The indirect method of cash flow begins with net income.
Hence, correct option is (A)
3. Auction market is NASDAQ NMS
4. Begining inventory = $30,000
Ending inventory = $15,000
Hence, operating inflow = 30,000 - 15,000
= $15,000
Hence, correct option is (B)
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