1. Foundations

Financial Statements — Quiz

Test your understanding of financial statements with 5 practice questions.

Practice Questions

Question 1

Which of the following would be classified as a financing activity on the Statement of Cash Flows?

Question 2

A company's current assets are $$ \$70,000 $ and its current liabilities are $ \$30,000 $$. What is its Working Capital?

Question 3

Which of the following best describes the accrual basis of accounting and its impact on financial statements?

Question 4

If a company repurchases its own stock, how does this transaction affect the Balance Sheet and Statement of Cash Flows?

Question 5

A company reports Net Income of $$ \$150,000 $. During the same period, Depreciation Expense was $ \$20,000 $, Accounts Receivable decreased by $ \$10,000 $, and Accounts Payable increased by $ \$5,000 $$. What is the Cash Flow from Operating Activities using the indirect method?