Accounts basics and cash flow statement questions


Question1: Which of the following would not be considered an internal user of accounting data for the ABC Company?

[A] Merchandise inventory clerk

[B] President of the employees’ labor union

[C] President of the company

[D] Production manager

Question2: External users want answers to all of the following questions except

[A] Will the company be able to afford employee pay rises this year?

[B] How does the company compare in profitability with competitors?

[C] Is the company earning satisfactory income?

[D] Will the company be able to pay its debts as they come due?

Question3: Which type of corporate information is not available to investors?

[A] Cash provided by investing activities

[B] Beginning cash balance

[C] Dividend history

[D] Forecast of cash needs for the upcoming year

Question4: The right to receive money in the future is called a(n)

[A] Liability

[B] Revenue

[C] Account payable

[D] Account receivable

Question5: Borrowing money is an example of a(n)

[A] Investing activity

[B] Operating activity

[C] Delivering activity

[D] Financing activity

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Finance Basics: Accounts basics and cash flow statement questions
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