Introduc on to Financial Accoun ng (Wharton)|
Ques ons and answers | Updated RATED A+ | 2026
Which of the following would be a cash flow from opera ng ac vi es? (check all that apply)
1.Gain on sale of equipment
2.Payments to suppliers
3.Deprecia on on a building
4.Collec ons from customers
5.Payments for adver sing
2,4,5
Which of the following would be a cash flow from inves ng ac vi es? (check all that apply)
1. Inves ng cash flow.
2. Deprecia on on a building
3. Proceeds from issuing stock
4. Proceeds from selling equipment
5. Purchases of inventory
1,4
A company has the following cash flows:
Cash from opera ons (30)
Cash from inves ng ac vi es (45)
Cash from financing ac vi es 90
Which growth stage best describes this pa0ern of cash flows?
1. Fossilized
2. Early growth
3. Mature
4. Start-up
5. Decline
, 4. Start-up
A company bought $50,000 of inventory for $20,000 cash, with the balance due to the supplier
in 30 days. What is the opera ng cash flow in this transac on?
1. ($30,000)
2. ($70,000)
3. ($50,000)
4. $0
5. ($20,000)
5
Which of the following would be shown as a nega ve number in the Opera ng sec on of the
SCF under the indirect method? (check all that apply)
1. Gain on sale of equipment
2. Decrease in Accounts Payable
3. Capital expenditures
4. Decrease in Accounts Receivable
5. Deprecia on on a building
1,2
A company has Net Income of $10, which included $2 of deprecia on expense. There were no
other noncash expenses in Net Income and there were no gains or losses. Accounts receivable
was $20 at the beginning of the year and $25 at the end of the year. Accounts Payable was $15
at the beginning of the year and $5 at the end of the year. Inventory was $12 at the beginning of
the year and $7 at the end of the year. All other balance sheet accounts were unchanged over
the year. What was the company's Cash Flow from Opera ng Ac vi es?
1. $12
2. $7
3. $22
4. ($2)
5. $2
5.
A company put together a preliminary version of its financial statements. Its Net Income was
$200, its Deprecia on Expense was $40, and its Cash Flow from Opera ons was $90. The
accountant found an error in compu ng straight-line Deprecia on Expense. It should have been
Ques ons and answers | Updated RATED A+ | 2026
Which of the following would be a cash flow from opera ng ac vi es? (check all that apply)
1.Gain on sale of equipment
2.Payments to suppliers
3.Deprecia on on a building
4.Collec ons from customers
5.Payments for adver sing
2,4,5
Which of the following would be a cash flow from inves ng ac vi es? (check all that apply)
1. Inves ng cash flow.
2. Deprecia on on a building
3. Proceeds from issuing stock
4. Proceeds from selling equipment
5. Purchases of inventory
1,4
A company has the following cash flows:
Cash from opera ons (30)
Cash from inves ng ac vi es (45)
Cash from financing ac vi es 90
Which growth stage best describes this pa0ern of cash flows?
1. Fossilized
2. Early growth
3. Mature
4. Start-up
5. Decline
, 4. Start-up
A company bought $50,000 of inventory for $20,000 cash, with the balance due to the supplier
in 30 days. What is the opera ng cash flow in this transac on?
1. ($30,000)
2. ($70,000)
3. ($50,000)
4. $0
5. ($20,000)
5
Which of the following would be shown as a nega ve number in the Opera ng sec on of the
SCF under the indirect method? (check all that apply)
1. Gain on sale of equipment
2. Decrease in Accounts Payable
3. Capital expenditures
4. Decrease in Accounts Receivable
5. Deprecia on on a building
1,2
A company has Net Income of $10, which included $2 of deprecia on expense. There were no
other noncash expenses in Net Income and there were no gains or losses. Accounts receivable
was $20 at the beginning of the year and $25 at the end of the year. Accounts Payable was $15
at the beginning of the year and $5 at the end of the year. Inventory was $12 at the beginning of
the year and $7 at the end of the year. All other balance sheet accounts were unchanged over
the year. What was the company's Cash Flow from Opera ng Ac vi es?
1. $12
2. $7
3. $22
4. ($2)
5. $2
5.
A company put together a preliminary version of its financial statements. Its Net Income was
$200, its Deprecia on Expense was $40, and its Cash Flow from Opera ons was $90. The
accountant found an error in compu ng straight-line Deprecia on Expense. It should have been
