Following are some of the multiple choice questions on the
Cash Flow with answers that will help the students in developing their knowledge. Cash Flow MCQ
1. Which one of the following ISN’T a way of cash outflow?
2. If a cashflow forecast suggests that a firm will run out of cash, which would help the problem?
3. The future plan of all money transactions for a specific time frame
4. Which accounting standard is applicable while preparing a cash flow statement ?
5. While preparing a cash flow statement business activities are classified into ?
6. Cash Flow Statement is based upon
7. Which of the following statements are false?A) Cash Flow Statement is helpful in the formation of policies.B) Cash Flow Statement is useful for external analysisC) Cash Flow Statement is helpful in estimating future cash flow
8. Which one of the following is an example of an outflow?
9. How much cash is received from the investment of a business owner, cash received from a bank loan, and the cash paid for a bank loan.
10. How much cash a business generates from selling a non-current asset or how much they spend to acquire a non-current asset
11. How much cash a business generates from it's core business operations - selling products or services
12. Money received from a business investor would be an example of
13. The amount of cash moving into and out of a business
14. Purchasing an asset would be an example of
15. Ideally, the net cash flow should be
16. Shows the total change in cash from operating, investing, and financing activities
17. The term _________ describes how efficiently an asset can be converted intocash.
18. Assume a firm sells goods costing £40,000 for £55,000. It provides the customerwith 70% trade credit (i.e. the customer pays only 30% of the price as a downpayment). The profit earned is __________, and the cash received is _________.
19. Cash inflows less than cash outflows =
20. What is the purpose of a cash flow forecast?
21. When a company spends $200 total on production. If they earn $500 in total revenue at a price of $50 per unit, then what is the company's average total cost of production for each unit?
22. A firm produces 500 units at a total cost of $2,000. What is their average total cost of production?
23. If a company sells 400 units of their product at an average price of $15 per unit, what is their total revenue?
24. The price of a product is $10, and the average total cost is $7. If the company produces and sells 25 units of the product, then what is their economic profit?
25. When a company increases production from 4 to 7 units, total revenue increases from $240 to $360. What is the marginal revenue (MR) of the last unit sold?
26. If a company earns $200 in total revenue when they produce 40 units, and they earn $40 in economic profit, then what is the company's average total cost per unit of production?
27. The total cost for a company is $50. If the total variable cost is $20, then what is the total fixed cost for the company?
28. Apple's 2016 revenue was $214.23 billion, and their net income (profit) was $45.69 billion. What was Apples total cost in 2016?
29. When a company produces one extra unit, their total cost increases from $7,500 to $8,000. What is the marginal cost of producing that extra unit?
30. A company hires 3 workers for a day for $250 each, spends $400 on materials for the day, and pays a fixed daily rent of $100. What is the company's total cost for this day of operations?
31. Which of these is NOT a goal of the cash flow forecast?
32. How is it called when a Business runs out of cash?
33. Which of these ISN’T a way of holding working capital?
34. Which of the following ISN'T a cash flow problem?
35. What means "cash flow as a liquid asset"?
36. Which one of these is NOT a type of activity presented on the statement of cash flows?
37. Why is the cash flow forecast important?
38. Which one is the working capital formula?
39. You can have negative Net Worth.
41. Property owned by a person or company, regarded as having value is an __________
42. What is a Liability ?
43. Bills and Loans are examples of ________?
44. Which are examples of expenses?
45. A thing for which someone is responsible, especially a debt or financial obligation is a _____.
46. What is another word for Wealth?
48. How do you build wealth
50. Why is the cash flow important?
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