MCQs
Cash Flow Statement
Total Questions : 118
| Page 3 of 12 pages
Answer: Option B. -> Excluded
:
B
Purchase of machinery by means of issue of shares should be excluded from cash flow statement as it doesnot involve cash.
:
B
Purchase of machinery by means of issue of shares should be excluded from cash flow statement as it doesnot involve cash.
Answer: Option C. -> Cash equivalents
:
C
Short term highly liquid investments that are readily convertible in to known amounts of cash and which are subject to insignificant risk of changes in value is known as cash equivalents
:
C
Short term highly liquid investments that are readily convertible in to known amounts of cash and which are subject to insignificant risk of changes in value is known as cash equivalents
Answer: Option B. -> Added
:
B
Increase in current liabilities like accounts payable, accrued liabilities, income tax payable etc. are added under indirect method.
:
B
Increase in current liabilities like accounts payable, accrued liabilities, income tax payable etc. are added under indirect method.
Answer: Option A. -> Inflow
:
A
Cash proceeds from issue of shares will result in cash inflow from financing activities.
:
A
Cash proceeds from issue of shares will result in cash inflow from financing activities.
Answer: Option C. -> Both:
Short term financial planning
Ascertaining cash flow from various activities separately
:
C
Cash flow statement useful for both short term financial planning and ascertaining cash flow from various activities separately
:
C
Cash flow statement useful for both short term financial planning and ascertaining cash flow from various activities separately
Answer: Option B. -> Added
:
B
Decrease in current assets are added under indirect method.
:
B
Decrease in current assets are added under indirect method.
Answer: Option C. -> Payment of interest
:
C
Payment of interest is an example of cash flow from operating activity for financing company.
:
C
Payment of interest is an example of cash flow from operating activity for financing company.
Answer: Option D. -> Sale of investment by non-financial enterprise
:
D
An example of cash flow from investing activity is sale of investment by non-financial enterprise.
:
D
An example of cash flow from investing activity is sale of investment by non-financial enterprise.
Answer: Option C. -> Financing activity
:
C
For non-financing company, the payment of interest is a financing activity.
:
C
For non-financing company, the payment of interest is a financing activity.
Answer: Option A. -> Operating activities
:
A
In the long run, a business must generate positive net cash flow from operating activities, if it is to survive.
:
A
In the long run, a business must generate positive net cash flow from operating activities, if it is to survive.