Lakshya Education MCQs

Question: In the case of financial enterprises, the cash flow resulting from interest received should be classified as cash flow from ..............
Options:
A.Operating activities
B.Investing activities
C.Financing activities
D.None of these
Answer: Option A
: A

In the case of financial enterprises, the cash flow resulting from interestreceived should be classified as cash flow from operating activities.

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More Questions on This Topic :

Question 1. Cash proceeds from issue of shares will result in cash _________ from financing activities.
  1.    Inflow
  2.    Outflow
  3.    Either inflow or outflow
  4.    None of these
Answer: Option A
: A

Cash proceeds from issue of shares will result in cash inflow from financing activities.
Question 2. Cash Flow Statement useful for _____.
  1.    Short term financial planning only
  2.    Ascertaining cash flow from various activities separately only 
  3.    Both: Short term financial planning Ascertaining cash flow from various activities separately
  4.    None of these
Answer: Option C
: C

Cash flow statement useful for both short term financial planning and ​​​​ascertaining cash flow from various activities separately
Question 3. Decrease in current assets are ________ under indirect method.
  1.    Not treated
  2.    Added
  3.    Subtracted
  4.    None of these
Answer: Option B
: B

Decrease in current assets are added under indirect method.
Question 4. Which of the following would not be considered a cash flow from “operating” activities?
  1.    Payments for the inventory
  2.    Interest received on loans
  3.    Tax payments
  4.    Payment of debt principle
Answer: Option D
: D

Payment of debt principlewould not be considered a cash flow from “operating” activities
Question 5. The main key activity of cash flow activities is:
  1.    Operating activities
  2.    Financing Activities
  3.    Investing Activities
  4.    None of these
Answer: Option A
: A

The main key activity of cash flow activities is operating activities.

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