Preview (20 questions)
1 Question
30 secondi fa
Q.

Cash Flow Statement is based upon _______ basis of accounting.


Cash

Accrual

Credit

2 Question
30 secondi fa
Q.

The future plan of all money transactions for a specific time frame is cash flow _________.


Statement

Projection

3 Question
30 secondi fa
Q.

While preparing a cash flow statement business activities are classified into ___ categories.


One

Two

Three

4 Question
30 secondi fa
Q.

Pick out the right example of Cash Flow from Operating Activities:


Purchases of Inventory for Cash

Purchase of Machinery

Issue of Shares

5 Question
30 secondi fa
Q.

Within the cash flow statement, the item of interest appears in ________.


Financing Activities

Investing Activities

Both

6 Question
30 secondi fa
Q.

Which of the following would help when a cash flow forecast suggests that a firm will run out of cash?


Repay a bank loan

Pay suppliers immediately

Delay paying suppliers

7 Question
30 secondi fa
Q.

Financing activities bring changes in _______ and _______ of owners’ equities and borrowings of the enterprise.


Life and death

Size and composition

Operating and investing

8 Question
30 secondi fa
Q.

A Cash Flow Statement is useful in estimating future cash flow.


True

False

9 Question
30 secondi fa
Q.

An increase in ________ will be added to net profit while calculating operating profit.


Tax

General Reserve

Asset

10 Question
30 secondi fa
Q.

Which of the following statements explains the objective of a Cash Flow Statement?


Analysis of cash position

Short-term cash planning

Evaluation of liquidity

All of these

11 Question
30 secondi fa
Q.

_______ method ignores cash generation beyond the period when cash inflow exceeds investments.


Payback

ARR

NPV

12 Question
30 secondi fa
Q.

_______ is a financial ratio used in capital budgeting, also known as the average rate of return.


IRR

ARR

NPV

13 Question
30 secondi fa
Q.

A cash flow statement is a replacement for a funds flow statement.


True

False

14 Question
30 secondi fa
Q.

_______ is an example of an activity that is classified as a financing activity in the case of all enterprises.


Payments of salaries

Payment of dividend on shares

Dividend received

15 Question
30 secondi fa
Q.

Does investing activity include the purchase of Long-term fixed assets?


Yes

No

16 Question
30 secondi fa
Q.

Which of the following statement about Cash flow is true?


Cash inflow from the purchase of marketable securities

Cash outflow from the sale of marketable securities

Cash inflow from the sale of other businesses

17 Question
30 secondi fa
Q.

________ is prepared on double-entry system of accounting.


Payment

Cashbook

Cash receipt

18 Question
30 secondi fa
Q.

The _______ side of cashbook denotes Receipts.


Debit

Credit

19 Question
30 secondi fa
Q.

A cash flow statement does not show whether the credit limit is breached.


True

False

20 Question
30 secondi fa
Q.

A cash flow statement is not a financial statement.


True

False