CFA Practice Question

There are 534 practice questions for this study session.

CFA Practice Question

A financial analyst has gathered the following information from the balance sheet and income statement of a company:

What is the cash flow from financing activities, according to GAAP?
A. 84
B. 212
C. 297
Explanation: CFF = -213 + 375 + 50 - 128 = 84

User Contributed Comments 7

User Comment
achu Notes payable are part of Financing, not an investment item!
Rotigga Damn, I thought that when it read, "Sale of Common Stock" that it was the stock of another company, so I classified it under Investing.
harpalani I disagree with the answer. Notes payable is part of current liability, it should form part of operating cash flows and not financing cash flows.
SKIA Harpalani - Notes payable can be LT or ST; it would have helped if they clarified; however, what you wrote, 'notes payable is part of current liability' is not correct based on the above.
jjhigdon IFRS - Dividends can be classified as Operating, therefore B would also be correct.
ongster They say assume US GAAP above
ecapocas They seem to be referring to "notes" on the assumption that it's a securitized liability, which would mean 3-10 years maturity.
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