How Would These Items Be Classified in a Statement of Cash

question 41

Multiple Choice

How would these items be classified in a statement of cash flows prepared for a hairdressing franchise?

i) Payment of $600 for hairdressing supplies.
Ii) Takings from customers for the month.
Iii) Capital paid into the business by the owner.

• A)i. Operating outflow.
• ii. Operating inflow.
• Iii. Does not appear in the statement of cash flows.
• B)i. Investing outflow.
• ii. Operating inflow.
• Iii. Financing inflow.
• C)i. Operating outflow.
• ii. Operating inflow.
• Iii. Financing inflow.
• D)i. Operating outflow.
• ii. Operating inflow.
• Iii. Investing inflow.

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Definitions:

Practical Intelligence

The ability to solve everyday problems by utilizing knowledge gained from experience in order to effectively deal with challenges and adapt to one's environment.

Spatial Intelligence

is the ability to comprehend and organize spatial relationships, enabling individuals to visualize and manipulate objects and their arrangements in space.

Naturalist Intelligence

A type of intelligence that involves skill in understanding and interacting effectively with the natural environment.

Semanticity

The characteristic of language that allows it to convey meaning through words and symbols.