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1.The purpose of the statement of cash flows is to provide information on: Choos

ID: 2456513 • Letter: 1

Question

1.The purpose of the statement of cash flows is to provide information on: Choose one answer. a. Profits. b. Cash inflows and outflows. c. Losses. d. Net worth. e. Capital adequacy

2.

Which of the following is not a financing activity?

Choose one answer.

Purchase of a building.

Repayment of long-term debt

Payment of cash dividends.

Proceeds from long-term borrowings.

Issue of shares

3.

All of the following are operating cash flows except:

Choose one answer.

Interest received.

Income tax paid.

Dividends paid to shareholders.

Payments to suppliers.

Receipts from customers

a.

Purchase of a building.

b.

Repayment of long-term debt

c.

Payment of cash dividends.

d.

Proceeds from long-term borrowings.

e.

Issue of shares

3.

All of the following are operating cash flows except:

Choose one answer.

a.

Interest received.

b.

Income tax paid.

c.

Dividends paid to shareholders.

d.

Payments to suppliers.

e.

Receipts from customers

Explanation / Answer

1.) b. Cash inflows and outflows.

2.) a. Purchase of a building.

3.) c.Dividends paid to shareholders.

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