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PAS 7 Cash Flows Quiz Answers

The document is a quiz on PAS 7 Statement of Cash Flows, containing multiple-choice questions related to cash and cash equivalents, reporting transactions, and the definition of the statement of cash flows. It includes specific scenarios for Entity A, such as cash balances and equipment acquisition, along with the correct answers provided at the end. The quiz aims to test knowledge of cash flow reporting and accounting principles.

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kcmarikit
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38 views2 pages

PAS 7 Cash Flows Quiz Answers

The document is a quiz on PAS 7 Statement of Cash Flows, containing multiple-choice questions related to cash and cash equivalents, reporting transactions, and the definition of the statement of cash flows. It includes specific scenarios for Entity A, such as cash balances and equipment acquisition, along with the correct answers provided at the end. The quiz aims to test knowledge of cash flow reporting and accounting principles.

Uploaded by

kcmarikit
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

lOMoARcPSD|16722647

QUIZ PAS 7 Statement OF CASH Flows

Accounting (Imus National High School)

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lOMoARcPSD|16722647

Page |1

PAS 7 Statement of Cash Flows


QUIZ:

1. Entity A had the following balances at December 31, 20x1:


Cash in checking account 35,000
Cash in 90-day money market account 75,000
Treasury bill, purchased 12/1/x0, maturing 5/31/x2 150,000
Treasury bill, purchased 12/1/x1, maturing 2/28/x2 200,000

How much cash and cash equivalents is reported in Entity A’s December 31, 20x1
statement of financial position?
a. 110,000 c. 310,000
b. 235,000 d. 460,000

2. Entity A acquires equipment by issuing shares of stocks. How should Entity A


report the transaction in the statement of cash flows?
a. Operating activities
b. Investing activities
c. Financing activities
d. Not reported

3. Entity A, a financial institution, received cash dividends from its investments in


marketable securities during the year. How will the dividends be presented in
Entity A’s statement of cash flows?
a. as investing activity
b. as operating activity
c. as financing activity
d. a or b

4. Which of the following statements best describes a statement of cash flows?


a. The statement of cash flows is also called the statement of activities.
b. The statement of cash flows shows information on an entity’s assets, liabilities
and equity.
c. The statement of cash flows shows information on an entity’s income and
expenses during the period.
d. The statement of cash flows shows historical changes of cash and cash
equivalents during the period.

5. Which of the following is presented under the investing activities section of a


statement of cash flows?
a. Collection of accounts receivable
b. Cash purchases of inventories
c. Purchase of equipment through cash
d. Issuance of share capital through cash
“Trust in the Lord with all your heart and lean not on your own understanding; in all
your ways acknowledge him, and he will make your paths straight.” (Proverbs 3:5-6)
- END -

SOLUTION:
1. C (35,000 + 75,000 + 200,000) = 310,000

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