Economics for Engineers (3140911) MCQs

MCQs of Cash Flow, Interest and Equivalence

Showing 11 to 20 out of 85 Questions
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11.
Which of the following items affects net income but does not affect cash?
(a) Depreciation of fixed assets
(b) Amortization of intangible assets & bond discounts
(c) Depletion of natural resources
(d) All of the above
Answer:

Option (a)

12.
The indirect method of preparing a statement of cash flows is also known as
(a) Income statement method
(b) Reconciliation method
(c) Balance sheet method
(d) Reverse method
Answer:

Option (b)

13.
The statement of cash flows is designed with the purpose of helping users to assess each of the following, except
(a) The major sources of cash receipts during the period
(b) The reasons why net cash flows from operating activities differ from net income
(c) The ability of a entity to remain liquid
(d) The profitability of the entity
Answer:

Option (d)

14.
Statement of cash flows includes
(a) Financing activities
(b) Operating activities
(c) Investing activities
(d) All of above
Answer:

Option (d)

15.
In cash flows, when a firm invests in fixed assets and short-term financial investments results in
(a) Increased equity
(b) Increased liabilities
(c) Decreased cash
(d) Increased cash
Answer:

Option (c)

16.
A firm that issues stocks and bonds to raise funds results in
(a) Decreased cash
(b) Increased cash
(c) Increased equity
(d) Increased liabilities
Answer:

Option (b)

17.
The purchase value of assets over its serviceable life is categorized as
(a) Appreciated liabilities
(b) Appreciated assets
(c) Depreciation
(d) Appreciation
Answer:

Option (c)

18.
The basic financial statements include
(a) Statement of cash flows
(b) Statement of retained earnings
(c) Balance sheet and income statement
(d) None of above
Answer:

Option (d)

19.
The statement of cash flow clarifies cash flows according to
(a) Operating and non-operating flows
(b) Inflow and outflow
(c) Investing and non-operating flows
(d) Operating, investing, and financing activities
Answer:

Option (d)

20.
Cash flow example from a financial activity is
(a) Payment of dividend
(b) Receipt of dividend on investment
(c) Cash received from customers
(d) Purchase of fixed asset
Answer:

Option (d)

Showing 11 to 20 out of 85 Questions
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