Question

1.

Total owner’s equity can be found in which section of a cash flow statement prepared using the direct method?

The financing activity section

The operating activity section

Total owner’s equity does not appear on a cash flow statement

The asset activity section

2.

Which of the following cannot be determined from a summary cash flow statement?

Change in cash balance

Types of cash

Sources of cash

Uses of cash

Answer 1

Solution:

1. Total owner’s equity can be found in which section of a cash flow statement prepared using the direct method?

Total owner’s equity does not appear on a cash flow statement

Total Owners equity appears only in the balance sheets, only the changes due to cash inflow or outflow appears in the cashflow sattement in the financing activity section.

2. Which of the following cannot be determined from a summary cash flow statement?

Types of cash

Sources, uses and change in cash balance can be determined from the cashflow statement.

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