Cash Flow Statements

Question 1

Debenture is

Answer 1

long term loan

Question 2

Income taxes paid will be from which year

Answer 2

Last year

Question 3

What 3 sections does a cash flow statement include?

Answer 3

1. Cashflow from operating activities
2. Cashflow from investing activities
3. Cashflow from financing activities

Question 4

What falls into cashflow from operating activities?

Answer 4

1. Operating profit
2. Depreciation charges
3. P/L on sales non-current assets
4. Accounts/Trade payables
5. Accounts.trade receivables
6. Inventory (stock)
7. Cash generated from operations
8. Income taxes paid

Question 5

What falls into cashflow from investing activities?

Answer 5

1. Interest received
2. Payments to acquire intangible NCA
3. Receipts from sale of tangible NCA
4. Payments to acquire tangible NCA

Question 6

What falls into cashflow form financing activities?

Answer 6

1. Issue of equity share capital
2. Issue of debenture
3. Debenture interest paid
4. Equity dividends paid

Question 7

A decrease in current liability will leads to the ______ of cash

Answer 7

outflow

Question 8

Depreciation will ____ profits

Answer 8

reduce

Question 9

Sale of an asset leads to ____ cash and ____ profit

Answer 9

Increase

Decrease

Question 10

Shortening of credit to customers will lead to _____ in bank balance

Answer 10

Increase

Question 11

Shortening of credit received will lead to _____ in cash outflow

Answer 11

Increase

Question 12

How does NCA activity affect operating activity?

Answer 12

Doesn’t

Question 13

Which of the following will be inflow or outflow?

1. Depreciation
2. Trade receivables
3. Trade payable
4. Stock

Answer 13

1. Inflow
2. Outflow
3. Inflow
4. Outflow