CFA Practice Question

There are 534 practice questions for this study session.

CFA Practice Question

Assume GAAP.

Cash payments for interest: 15
Retirement of common stock: 40
Cash payments to merchandise suppliers: 93
Sale of equipment: 31
Payment of dividends: 38
Purchase of land: 9
Cash payment for salaries: 40
Cash collections from customers: 265
Purchase of equipment: 44

What are cash flows from financing activities?
A. -78
B. 78
C. 2
Explanation: CFF = Outflow from retirement of common stock = 40
Outflow from payment of dividends = 38
Total: -78

User Contributed Comments 6

User Comment
Terry how about the cash payments for interest?
lilbut interest is in cfo, not cff
jpducros when not specified, consider we are in US Gaap...
shiva5555 So this is payment of dividends and retirement of common stock correct?
siggarusfigs no jpducros, we assume IFRS if not specified
rjdelong no jpducros is correct assume GAAP if not stated, but it is stated right at the top of the question you are in GAAP on this question
You need to log in first to add your comment.