When calculating the cash flows from operating activities which of the following statements is true? a) The tax paid should be deducted b) The interest payable should be deducted c) The tax paid should be added d) None of the above

Accruals occur when the cash flow precedes either revenue or expense recognition. True/False?

In a cash flow statement which one of the following would appear as an inflow of cash? O The profit on sale of a fixed asset. A repayment of debenture loans. An issue of shares at a premium, An increase in stock during the year.

Which of the following sections of the statement of cash flows include activities that increase and decrease long-term assets? the investing activities section Should not be reported on cash flow statement OO the financing activities section the operating activities section

The cost of new non-current assets is a cash payment not an expense in the statement of profit or loss?     True       False

Which of the following statements about the direct and indirect methods for presenting Cash Flow Statement is NOT true?  According to the indirect method, cash flows begin with net income or loss and is followed by subsequent additions to or deductions from that amount for non-cash revenue and expense items, resulting in cash flow from operating activities. The direct method is based on use of actual cash inflows and outflows from a company’s operations. Using direct and indirect methods leads to different amounts shown as cash flow from operations, investing, and financing activities. The cash flow statement, income statement and balance sheet are interconnected: the cash flow amount is equal to the corresponding income statement amount plus or minus the change in the related balance sheet account.

The payback period method is inferior to the net present value method because it ________.     is difficult to compute     Deals with accounting income rather than cash flows     Fails to consider cash flows beyond the payback period

In the Statement of Cash Flows, depreciation is ignored because it is a non cash expense. Group of answer choices True False