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American Bankers Association CTFA Exam - 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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Kattie

8 months ago

It's usually a net result from all activities, right?

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Kristeen

8 months ago

Wait, how can it be none of the above? That seems odd.

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Hana

9 months ago

I thought it was only from investing activities?

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Ernie

9 months ago

Definitely not just from operating activities!

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Salena

9 months ago

It's actually a summary of all cash flows combined.

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Carli

9 months ago

I believe it’s definitely tied to financing activities, but I might be mixing it up with how dividends are reported.

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Margot

9 months ago

I’m leaning towards option D, but I can't recall if cash equivalents are always included in operating activities.

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Jess

9 months ago

I remember practicing a similar question where cash flows from investing activities were discussed. This feels different though.

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Sueann

9 months ago

I think the increase or decrease in cash and cash equivalents is related to operating activities, but I'm not entirely sure.

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Lucina

9 months ago

Bimodal distribution, that's the answer. The two peaks in the histogram indicate a bimodal distribution, so I'm going with option D.

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Rhea

9 months ago

Cloud Armor seems like a good option to protect against these types of attacks. I'll make sure to read the question thoroughly and consider all the choices before selecting my answer.

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Alfred

9 months ago

I'm pretty confident the answer is B. Setting the AP fallback to disabled will prevent the AP from automatically moving back to its defined controller, which is what the customer wants.

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Tesha

10 months ago

Hmm, I'm a bit unsure about this one. I know WEM has different profile management settings, but I'm not sure which one would be the best option to improve desktop load times. I'll need to think this through carefully.

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Terrilyn

1 year 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 year 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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Trinidad

1 year ago

Understanding the different sections of the statement of cash flows is crucial for financial analysis.

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Samuel

1 year ago

Yes, cash flow from operating activities includes changes in cash and cash equivalents.

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Maurine

1 year ago

It's important to understand the basics of accounting statements like the statement of cash flows.

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Sarah

1 year ago

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

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Magdalene

1 year 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 year 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

1 year 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

1 year 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

1 year 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

1 year 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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Christoper

1 year ago

I'm not sure, but I think it's A as well. Operating activities seem to make the most sense for changes in cash and cash equivalents.

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Celia

1 year ago

I think it might be C. Financing activities also involve cash flows, so it could be related to that.

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Joaquin

1 year ago

I agree with you, it should be A. The increase or decrease in cash and cash equivalents is definitely related to operating activities.

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Omega

1 year ago

I'm not sure, but I think it could also be C) A cash flow from financing activities, depending on how the company raised additional cash.

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Dorathy

1 year ago

I agree with Susy, because an increase in cash and cash equivalents is usually related to the company's core business operations.

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Susy

1 year ago

I think the answer is A) A cash flow from operating activities.

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