American Bankers Association Exam CTFA Topic 4 Question 39 Discussion

Actual exam question for American Bankers Association's CTFA exam

Question #: 39
Topic #: 4

[All CTFA Questions]

On an accounting statement of cash flows an "increase(decrease) in cash and cash equivalents" appears as:

AA cash flow from operating activities

BA cash flow from investing activities

CA cash flow from financing activities

DNone of the above

Show Suggested Answer

Suggested Answer: B

by Willodean at Nov 21, 2022, 12:39 PM

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Terrilyn

29 days ago

Wait, is this a trick question? I mean, if the 'increase(decrease) in cash and cash equivalents' doesn't fit into any of the three main categories, then maybe D) is the right answer. Gotta love those curveball accounting questions!

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Shelia

1 months ago

I know the answer is A! Cash and cash equivalents are the most basic and important part of the operating activities section. This is like Accounting 101 stuff.

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Sarah

6 days ago

I agree, cash and cash equivalents are definitely part of operating activities.

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Magdalene

1 months ago

D) None of the above? Really? How can that be? The cash flow statement literally has a line item for this, so it has to be one of the three main categories. I'm going to have to disagree with that option.

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Daren

1 months ago

Hmm, I'm not so sure. Wouldn't this be a cash flow from investing activities, since it's related to the company's overall cash position? I'll have to think about this one a bit more.

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Youlanda

14 days ago

I'm not entirely sure, but I think it might be a cash flow from investing activities, as changes in cash can be related to investments in assets or securities.

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Ty

15 days ago

I believe it could also be a cash flow from financing activities, as changes in cash and cash equivalents can be influenced by borrowing or repaying debt.

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Carli

16 days ago

I think it might actually be a cash flow from operating activities, since it's related to the day-to-day operations of the business.

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Refugia

2 months ago

I think the answer is A. The 'increase(decrease) in cash and cash equivalents' is the net change in the company's cash position, which is a key part of the operating activities section of the cash flow statement.

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