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Stocks 303: Understanding the Statement of Cash Flow

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1.
Which of the following is not included in the statement of cash flow?
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Managing activities. The statement of cash flow does not include this.
2.
Equipment expenditures are included in which section of the statement of cash flow?
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Investing activities. Equipment is considered an investment.
3.
On a companys statement of cash flow, the sale of property is recorded as a ______.
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Cash inflow. It generates incoming cash.
4.
The statement of cash flow records inflows and outflows of cash as soon as income is earned or expenses incurred.
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False. It records income and expenses regardless of when they were earned or incurred.
5.
The operating activities section of the statement of cash flow covers cash flows associated with _______.
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Production and sales. It concerns itself with the cash flows of making and selling the companys products or services.
6.
In a statement of cash flow, accounts receivable are listed in the section on cash flows from operating activities.
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True. Accounts receivable are operating activities.