4. Finance

Financial Statements — Quiz

Test your understanding of financial statements with 5 practice questions.

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Practice Questions

Question 1

Under IFRS, interest received may be classified in the statement of cash flows as:

Question 2

Under IFRS, dividends received may be classified in the statement of cash flows as:

Question 3

Repayment of principal on a long-term bank loan is classified in which section of the statement of cash flows?

Question 4

Under the direct method, cash paid to suppliers is calculated as purchases less changes in payables. A company has cost of goods sold of £400,000, an increase in inventory of £30,000 and an increase in accounts payable of £15,000. What is its cash paid to suppliers?

Question 5

In vertical analysis of an income statement, depreciation expense as a percentage of sales for a company with sales of £1,200,000 and depreciation expense of £60,000 is: