Answer Multiple Choice (based on whether or not the statements are correct or incorrect)

Which option below is incorrect?

The CFO includes purchases of Property Plant and Equipment

The CFF includes dividends, share repurchases, and share issuances

The CFF includes issuances and repayments of debt

The CFO includes interest expense since it is included net income

Which option below is incorrect?

share repurchases, net income and dividends are all components of retained earnings

If accounts payable goes down from one period to another period, it means that it is a cash outflow on the Cash Flow Statement

If inventory goes up from one period to another period, it means that it is a cash outflow on the Cash Flow Statement

Capex and dividends are cash outflows 100% of the time

Which option below is incorrect?

Usually net income is first in a CFS

Dividends are financing items in a Cash Flow Statement

Interest expenses are financing items on a Cash Flow Statement

Which option below is incorrect?

Separate schedule is required for PP&E (due to the fact that depreciation and capex flow as separate line items into the financials

An example of an item modeled on a separate schedule are intangible assets

The constituents of PP&E, capex & depreciation, are investing and operating activities, respectively

cash expenses include depreciation and amortization

Which option below is CORRECT?

Property Plant and Equipment equals the difference between two periods on the balance sheet

Depreciation is reflected in CFI section of CFS

If accounts receivable goes up, it is shown as a cash outflow on the Cash Flow Statement

If company invests in PP&E, that is shown as a cash outflow in the CFO section of the CFS