Cash Flow Statement Short Questions Q&A

True Tamplin

Written by True Tamplin, BSc, CEPF®
Updated on April 29, 2022

1. Define IAS-7.

2. What are the objectives of IAS-7?

3. What are operating activities?

4. Give two examples of operating activities.

5. Explain the term "investing activities."

6. Give two examples of investing activities.

7. Explain the term "financing activities."

8. Give two examples of financing activities.

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Frequently Asked Questions

What is a Cash Flow statement?

A Cash Flow statement is a Financial Statement that shows a company’s cash inflows and outflows over a specific period. The statement can be used to measure a company’s liquidity, its ability to pay its debts and fund its operations.

What are the three main sections of a Cash Flow statement?

The Cash Flow statement is important because it provides a snapshot of a company’s financial health. The statement can help investors, creditors and other stakeholders gauge a company’s ability to meet its financial obligations.

What are the three main sections of a Cash Flow statement?

What are the three main sections of a Cash Flow statement?

What is the difference between Cash Flow from operations and net income?

Cash Flow from operations is calculated by subtracting a company’s expenses from its revenue. Net income is the company’s total revenue minus its total expenses, including income taxes. Cash Flow from operations measures a company’s actual cash inflows and outflows, while net income is a measure of profit that appears on the company’s income statement.

What are the key indicators to watch in a Cash Flow statement?

The key indicators to watch in a Cash Flow statement are: Cash Flow from operations, free Cash Flow and debt-to-equity ratio. These ratios can help investors, creditors and other stakeholders gauge a company’s financial health.

Disclaimer: The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.

True Tamplin, BSc, CEPF®

About the Author
True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website, view his author profile on Amazon, or check out his speaker profile on the CFA Institute website.

2 thoughts on “Cash Flow Statement Short Questions Q&A”

    • Thanks! Let us know what other kinds of information you’d like to see and we’ll try to add it in the future. Best of luck!

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