"Financial Report":Operating cash flow
学习是一个不断积累的过程，每天学习一点，每天进步一点！为了帮助大家更高效地备考2021年CFA考试，正保会计网校每日为大家上新CFA习题供大家练习。让网校与您一起高效备考2021年CFA考试，梦想成真！
Questions 1:
The following information (in millions) on a company is available:
The amount of cash (in millions) that the company paid to its suppliers is closest to:
A、 $505.
B 、$495.
C 、$445.
Questions 2:
Compared with its net income, a mature company’s operating cash flow is most likely:
A、 the same.
B 、lower.
C 、higher.
B is correct.
A is incorrect. Decrease in inventory treated as an increase and decrease in AP treated as decrease in cash flow: 500 + 30 – 25 = 505.
C is incorrect. Decrease in accounts payable treated as a reduction rather than an increase in cash flow: 500 – 30 – 25 = 445.
C is correct. For a mature company, because net income includes non-cash expenses (depreciation and amortization), operating cash flow typically exceeds net income. A
is incorrect. For a mature company, net income includes non-cash expenses (depreciation and amortization), so it is expected and desirable for operating cash flow to exceed net income, not for them to be equal.
B is incorrect. For a mature company, net income includes non-cash expenses (depreciation and amortization), so it is expected and desirable for operating cash flow exceeds net income. If operating cash flows were lower than net income, this would be an indication of poor earnings quality.
成功=时间+方法，自制力是这个等式的保障。世上无天才，高手都是来自刻苦的练习。而人们经常只看到“牛人”闪耀的成绩，其成绩背后无比寂寞的勤奋。小编相信，每天都在勤奋练习，即使是一点点的进步，大家一定可以成为人人称赞的“牛人”。
