Quiz/Seatwork

Statement of Cash Flows

1. Primary purpose of the statement of cash flows is to provide

information
a. About operating, investing and financing activities of an entity during a
period.
b. About ability to meet obligations, ability to pay dividends and need for
external reporting.
c. About cash receipts and cash payments during a period.
d. About assessing cash flow prospects
2. An entity shall report cash flows from operating activities using
a. Direct Method
b. Indirect Method
c. Either direct method or indirect method
d. Neither direct method or indirect method

# 3-5
2016

2015

Cash

2,750,000

2,000,000

Accounts Receivable

7,000,000

4,600,000

Investments

1,000,000

1,750,000

Plant

9,000,000

6,500,000

(3,000,000)

(2,250,000)

Accounts Payable

4,750,000

3,750,000

Share Capital

7,500,000

5,000,000

Retained Earnings

4,500,000

3,850,000

Accumulated
Depreciation

An investment was sold for Php 1,250,000 during the year. There
was no disposal of plant.
Net income for the year was Php 3,000,000 after income tax
expense of Php 1,200,000.
A dividend of 2,350,000 was paid on December 31, 2016.

3.

What is the net cash provided by operating

activities?
a. 2,350,000
b. 3,050,000
c. 1,850,000
d. None in the Above
4. What is the Net cash provided/used in investing
activities?
a. (750,000)
b. (1,250,000)
c. 1,250,000
d. 750,000

5. What is the net cash provided/used by financing

activities?
a. 150,000
b. (150,000)
c. 2,350,000
d. (2,350,00)