Directions: Read each of the following statements
INFLOW, OUTFLOW or NO FLOW type of transaction. Write your
differentiating FUND FLOW and CASH FLOW and
identify whether it is:
A- Both statements are TRUE C- 1st statement is TRUE;
2nd statement is FALSE
B- Both statements are FALSE D- 1st statement is FALSE;
2nd statement is TRUE
Write the letter of your answer on the space provided
before each item. Please use Capital letters.
____A_1. (a) A statement that shows the changes in the
cash and bank balance between opening and closing dates
is known as a cash flow statement; while (b) a statement
that shows the variations in the financial position between
the two financial years is known as a fund flow statement.
___A__2. (a) Fund Flow Statement examines the firm’s
efficiency in utilizing the working capital. (b) Conversely,
Cash Flow Statement analyses the cash generating
efficiency of the entity.
___C__3. (a) Cash Flow statement is a part of Financial
Statement. (b) Fund Flow Statement is part of the Balance
Sheet.
___A__4. (a) Fund Flow Statement is helpful to a long-
term analysis of financial planning; (b) while Cash Flow
statement is useful for a short term financial analysis of
cash planning
___A__5. (a) Cash flow statement contains opening
and closing balances of cash and cash equivalents.
(b) On the contrary, fund flow statement does not
contains opening and closing balances of cash and
cash equivalents.
___B__6. (a) Fund Flow statement uses non- cash
basis of accounting. (b) On the contrary, Cash Flow
statement uses the Accrual Basis of Accounting.
___A__7. (a) Fund Flow Statement shows the
sources and application of funds, (b) but Cash Flow
statement shows the inflows and outflows of cash.
__D___8. (a) A fund flow statement is a statement
showing the changes in the financial position of the
entity in the current accounting year. (b) A cash flow
statement is a statement showing the inflows and
outflows of cash and cash equivalents over a period.
___A__9. (a) Fund flow statement is prepared to
show the reasons for the changes in the financial
position, with respect to previous year and current
accounting year. (b) Cash Flow statement is prepared
to show the reasons for movements in the cash at the
beginning and at the end of the accounting period.
___A__10. (a) Cash flow refers to the current format
for reporting the inflows and outflows of cash, (b)
while funds flow refers to an outmoded format for
reporting a subset of the same information.
Directions: Read the following ACTIVITIES and identify whether it is
answer on the space provided for. ANSWERS
1. Interest received from making loans INFLOW
2. Payments to acquire inventory OUTFLOW
3. Conversion of debentures into shares NO FLOW
4. Payments to lenders and other creditors for interest OUTFLOW
5. Sale of property, plant, and equipment INFLOW
6.Cash paid purchase available-for-sale
and held-to-maturity securities OUTFLOW
7. Purchased of fixed assets by issue of shares NO FLOW
8. Cash paid to make long-term loans to others. OUTFLOW
9. Payments of cash dividends or other distributions to owners OUTFLOW
10. Repayments of amounts borrowed. OUTFLOW
11. Purchase or sales of marketable securities NO FLOW
12. Cash received from issuing capital stock and bonds, INFLOW
13. Cash received from mortgages, and notes, and from other
short- or long-term borrowing. INFLOW
14. Payment of taxes. OUTFLOW
15. Payments of Registration Fee at the Securities and Exchange
Commission. OUTFLOW
1) To serve the Filipino community by providing great-tasting
food and
the most relevant customer delight experience.
2) Mr. Moon, a financial advisor, noted that his client Miss
Magan Da needs a retirement plan instead of an investment
plan based
on the information provided to him.
3) Miss Any, a credit officer of Copyshop Finance,
went to Pantubay Bankto know if Mr. Mabuti maintains
his bank account there.
4) Upon verifying the account of Mr. Mabuti, Miss Any found
out that Mr. Mabuti incurred a pass due account
of one million.Therefore, she made a plan to refer it to
the higher management.
5) Kate, a human resource manager of Awe Company,
collects the resume of every applicant for the bookkeeper
position for the first quarter of the year.
6) Awe Company hired three bookkeepers for their three
branches in the region which was recommended by
the top management.
7) The Statement of Financial Position shows that the company’s
asset for the year was 3 billion and 10% increment was
expected for the coming year.
8) Fe, a sole proprietor who manages a grocery store, aims to be
the number one leading grocery store in the region.
9) Tim an industrial engineer of ABC Motors aims to introduce
a new technology in terms of payment of clients for easy
monitoring on the products they offer in the market.
1 Observing the effect of the new normal system due to the
0) COVID-19 pandemic in the country’s stock market.
_____1. This steps in financial planning process
means plan in action.
a. monitor plan c. implement the plan
b. develop the plan d. set goals or objectives
_____2. Gathering data includes the following
EXCEPT.
a. interview c. observation
b. conducting survey d. promotion
_____3. In this financial planning process, blue
prints are developed.
a. monitor plan c. implement the plan
b. develop the plan d. set goals or objectives
_____4. The following are characteristics of
goal/objectives EXCEPT.
a. simple c. measurable
b. attainable d. timing
_____5. This financial planning process involves
controlling function of financial managers
a. monitor plan c. implement the plan
b. develop the plan d. set goals or objectives
_____6. Financial resources include the
following EXCEPT.
a. cash c. credit lines
b. checks d. land
b. gather data d. develop the plan
_____10. It describes what the firm wants to be
and how statements are
developed.
a. set goals/objectives c. analyse data
b. gather data d. develop the plan
Directions. Read each statement carefully and
write T if the statement is correct. If the
statement is incorrect, write F. Write your
answer on the space provided for.
_______1. The step “Analyze the data” means
eliminating the least important factor that
would help in making decisions.
_______2. A short-term plan is most probably
a strategic plan.
_______3. Chief Executive Officers are
considered as operational planners.
_______4. A financial plan must be flexible.
_______5. Financial control is needed to
maintain the continuity of the plan.

_____7. It tells what the business firm wants to

be.
a. mission statement c. financial statement
b. vision statement d. income statement

_____8. Financial information come from

financial reports which include the following
EXCEPT.
a. statement of income c. notes to financial
statement
b. statement of cash flow d. financial statement

_____9. In this financial planning process

needed resources are collected.
a. set goals/objectives c. analyse data