Preparation of cash flow statement is :
  • Mendatory
  • Recommendatory
  • Required under the Companies Act
  • None of these
Issue of shares in consideration of purchase of plant and machinery results into :
  • Inflow of Cash
  • Outflow of Cash
  • Neither Inflow nor Outflow
  • None of these
If net profit is 7 50,000 after writing off goodwill 7 10,000 then the cash flow from operating activities will be:
  • ₹ 60,000
  • ₹ 40,000
  • ₹ 50,000
  • ₹ 30,000
If net profit is ₹ 35,000 after writing off good will ₹ 6,000 and loss on sale of furniture ₹ 1,000, cash flow from operating activities will be :
  • ₹ 35,000
  • ₹ 42,000
  • ₹ 29,000
  • ₹ 28,000
Cash sales in :
  • Operating Activity
  • Investing Activity
  • Financing Activity
  • None of these
Cash from operating activities will decrease due to :
  • Increase in Current Assets
  • Decrease in Current Liabilities
  • Neither of the two
  • Both (a) and (b)
Which of the following is an example of Cash Flow from Operating Activities ?
  • Purchase of Machinery
  • Issue of Shares
  • Purchases of Inventory for Cash
  • Purchases of Investment
While calculating operating profit which will be added to net profit:
  • Interest received
  • Profit on sale of Asset
  • Increase in General Reserve
  • Refund of Tax
While calculating cash flow from operating netivities which will be deducted ?
  • Increase in Creditors
  • Increase in Debtors
  • Decrease in Debtors
  • Decrease in Prepaid Expenses
While calculating cash flow from operating activities, which will be added ?
  • Increase in Stock
  • Increase in Creditors
  • Decrease in Bills Payable
  • Increase in Debtors
An example of Cash Flow from Investing Activities :
  • Cash Sales
  • Issue of Shares
  • Payment of cash for purchase of machinery
  • Payment of Dividend
An example of Cash Flows from Financing Activity is :
  • Sale of goods
  • Sale of Investment
  • Cash receipts from issue of shares
  • Interest received
How will you treat payment of ‘Interest of Debentures’ while preparing a Cash Flow Statement ?
  • Cash Flow from Operating Activities
  • Cash Flow from Investing Activities
  • Cash Flow from Financing Activities
  • Cash Equivalents
Where will you show purchase of goodwill in Cash Flow Statement:
  • Cash Flow from Operating Activities
  • Cash Flow from Investing Activities
  • Cash Flow from Financing Activities
  • Cash Equivalent
Interest received by a finance company is classified under which kind of activity while preparing a Cash Flow Statement ?
  • Cash Flow from Operating Activities
  • Investing Activities
  • Financing Activities
  • Cash Equivalent
Which of the following item is considered as cash equivalents:
  • Bank Overdraft
  • Bills Receivable
  • Debtors
  • Short-term Investment
Which of the following item is not considered as cash equivalents ?
  • Bank Overdraft
  • Commercial Papers
  • Treasury Bills
  • Investment
Cash payment to employees is a Cash Flow from:
  • Operating Activities
  • Investing Activities
  • Finance Activities
  • All the above
Which of the following is not a Cash in Flow ?
  • Sale of Fixed Asset
  • Purchase of Fixed Asset
  • Issue of Debentures
  • Sale of Goods for Cash
In cash flow statement, the item of ‘Interest’ is shown in:
  • Operating Activities
  • Investing Activities
  • Financial Activities
  • In both & (c)
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