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The sum of the three major components (operating, investing and financing activities) on a statement of cash flows will add up to:?

a. the ending cash balance.

b. the change in the cash account balance between the beginning and ending of the period.

c. the amount of cash inflow for the period.

d. net income for the period.

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Question ajoutée par Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies
Date de publication: 2015/07/02
Shahbaz Hayder
par Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies

Yes - Option B is the right answer.

Zehab Osman
par Zehab Osman , Accountant , Aldar Consultancy Co.

B------------------------------------------

mehfooz alam khan habib khan
par mehfooz alam khan habib khan , Security Incharge , Landmark Group (Emax)

Option B change in the cash for the specific period....................

Ahmed Hassanin CMA
par Ahmed Hassanin CMA , Financial Planning and Controlling Manager , Methode Electronics

b. the change in the cash account balance between the beginning and ending of the period. 

Iftikhar Hussain Shah
par Iftikhar Hussain Shah , Senior Manager Audit & Assurance , Deloitte LLP

Option B is correct...........

Answer is option : B....change in cash for the period...

Shazia Anees
par Shazia Anees , Assistant Manager Finance , Arham Trading Company

option b============================

Tegegne Abrham
par Tegegne Abrham , General Manager , MM BEDDING INDUSTRIES PLC

There is no option provided in the question. The answer should be added to the beginning cash balance. The need for the cash flow is to show where the investors cash has gone ( when the ending is lower than the beginning) or from where it comes( the reverse).

Operating + Investing + Financing = NCF. This NCF can be positive or negative and this is added to the beginning of the cash and arrived at the end of the cash balance.

A-Cannot be the answer b/s it will be added to beginning cash balance

B- NCF = the change b/n beg. and Ending cash. It will be counting twice

C - Is the same as B

D- Net Income has already be considered when calculating Operating Income. no need to do that twice

My Answer would be option E

E - added to the beginning balance

Utilisateur supprimé
par Utilisateur supprimé

c. the amount of cash inflow for the period.

Reynaldo Mauleon
par Reynaldo Mauleon , ACCOUNTING SUPERVISOR , Timstate Food & Beverages Corp. Bangkal

My answer is letter (C). It will add up to "Amount of cash inflow for the period". Or the Beginning Cash Balance to arrive at the Ending Cash Balance when added. 

Mustafa Haider
par Mustafa Haider , Assistant Manager Accounts , Kamal Hosiery Mill

answer b is correct answer "the change in the cash account balance between the beginning and ending of the period.".....

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