MCQs
Cash Flow Statement
Total Questions : 118
| Page 2 of 12 pages
Answer: Option A. -> Investing activities
:
A
This transaction would affect investing activitiessince it is related to fixed assets
:
A
This transaction would affect investing activitiessince it is related to fixed assets
Answer: Option B. -> Added
:
B
Non-cash expenses like depreciation, depletion & amortization expense are added to net profit before tax under indirect method.
:
B
Non-cash expenses like depreciation, depletion & amortization expense are added to net profit before tax under indirect method.
Answer: Option D. -> Operating, investing and financing activities
:
D
The statement of cash flows clarifies cash flows according to operating, investing and financing activities.
:
D
The statement of cash flows clarifies cash flows according to operating, investing and financing activities.
Answer: Option A. -> True
:
A
True.Cash flow from operating activities excludes money that is spent on capital expenditures.
:
A
True.Cash flow from operating activities excludes money that is spent on capital expenditures.
Answer: Option A. -> Payment of dividend
:
A
Example of cash flow from financing activity is payment of dividend
:
A
Example of cash flow from financing activity is payment of dividend
Answer: Option B. -> It reconciles ending cash balance with the balance as per bank statement.
:
B
It reconciles ending cash balance with the balance as per bank statementis incorrect about the statement of cash flows
:
B
It reconciles ending cash balance with the balance as per bank statementis incorrect about the statement of cash flows
Answer: Option D. -> Statement of Cash Flows
:
D
A financial statement that shows the inflows and outflows of cash during a particular period of time is known as statement of cash flows.
:
D
A financial statement that shows the inflows and outflows of cash during a particular period of time is known as statement of cash flows.
Answer: Option A. -> Operating Activities
:
A
Operating Activities isone of the purest measures of cash sources and uses.
:
A
Operating Activities isone of the purest measures of cash sources and uses.
Answer: Option A. -> Operating
:
A
In particular, operating cash flow can uncover a company's true profitability
:
A
In particular, operating cash flow can uncover a company's true profitability
Answer: Option B. -> deducted
:
B
Receipt of interest is to be deducted from net profit.
:
B
Receipt of interest is to be deducted from net profit.