Q.1
Which one of the following ISN’T a way of cash outflow?
  • Purchasing goods & services
  • Paying wages, salaries and expenses
  • Paying creditors
  • Borrowing money from external sources
Q.2
If a cashflow forecast suggests that a firm will run out of cash, which would help the problem?
  • purchase more fixed assets
  • repay a bank loan
  • pay suppliers immediately
  • delay paying suppliers
Q.3
The future plan of all money transactions for a specific time frame
  • cash flow statement
  • cash flow projection
Q.4
Which accounting standard is applicable while preparing a cash flow statement ?
  • AS-4
  • AS-3
  • AS-3(Revised)
  • Schedule  III
Q.5
While preparing a cash flow statement business activities are classified into ?
  • 03 categories
  • 06 categories
  • 04 categories
  • 02 categories
Q.6
Cash Flow Statement is based upon
  • Cash basis of accounting
  • Accrual basis of accounting
  • Credit basis of accounting
  • None of the above
Q.7
Which of the following statements are false?A) Cash Flow Statement is helpful in the formation of policies.B) Cash Flow Statement is useful for external analysisC) Cash Flow Statement is helpful in estimating future cash flow
  • Both A and B
  • Both A and C
  • Both B and C
  • None of the above
Q.8
Which one of the following is an example of an outflow?
  • Capital
  • Bank Loan
  • Wages
  • Government Grant
Q.9
How much cash is received from the investment of a business owner, cash received from a bank loan, and the cash paid for a bank loan.
  • Operating Activities
  • Financing Activities
  • Investing Activities
Q.10
How much cash a business generates from selling a non-current asset or how much they spend to acquire a non-current asset
  • Operating Activities
  • Financing Activities
  • Investing Activities
Q.11
How much cash a business generates from it's core business operations - selling products or services
  • Operating Activities
  • Financing Activities
  • Investing Activities
Q.12
Money received from a business investor would be an example of
  • cash inflow
  • cash outflow
Q.13
The amount of cash moving into and out of a business
  • Cash Flow
  • Net Worth
Q.14
Purchasing an asset would be an example of
  • cash inflow
  • cash outflow
Q.15
Ideally, the net cash flow should be
  • positive
  • negative
Q.16
Shows the total change in cash from operating, investing, and financing activities
  • Beginning Cash Balance
  • Net Cash Flows
  • Ending Cash Balance
Q.17
The term _________ describes how efficiently an asset can be converted intocash.
  • Liquidity
  • Solvency
  • Conversion rate
  • Working capital cycle
Q.18
Assume a firm sells goods costing £40,for £55,It provides the customerwithtrade credit (i.e. the customer pays onlyof the price as a downpayment). The profit earned is __________, and the cash received is _________.
  • £15,000, £12,000
  • £15,000, £16,500
  • £15,000, £28,000
  • £15,000, £55,000
Q.19
Cash inflows less than cash outflows =
  • Positive cash flow
  • Insolvency
Q.20
What is the purpose of a cash flow forecast?
  • To calculate profit or loss
  • To find out whether a business has enough cash to pay their bills
  • To find out when customers are going to pay their invoices
  • To see if the business will break even
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