Cash Flow Statement MCQ
Cash Flow Statement MCQ
1. Cash flow statement is prepared for financial planning of
(A) Long range
(B) Medium range
(C) Short range
(D) Very Long range
Answer: C
2. Which of the following is source of cash?
(A) Cash deposited into Bank
(B) Cash withdrawn from Bank
(C) Sale of Goods costing ₹10,000 for ₹8,000
(D) Sale of marketable securities for cash
Answer: C
3. Which of the following is not source of cash?
(A) Issue of shares
( B) Purchase of Machinery
(C) Sale of Asset
(D) Dividend received
Answer: B
4. Which of the following is not application of cash?
(A) Increase in Debtors
(B) Increase in Inventory
(C) Increase in Bills Payable
(D) Increase in Prepaid Expenses
Answer: C
5. Cash from operating activities consists of:
(A) Operating Profit
(B) Decrease/Increase in Current Assets
(C) Decrease/Increase in Current Assets
(D) All of the Above
Answer: D
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6. While calculating operating profit which will be added to net profit:
(A) Preliminary Expenses Written off
(B) Depreciation
(C) Loss on Sale of Asset
(D) All of the Above
Answer: D
7. While calculating operating profit which will be added to net profit
(A) Profit on Sale of Asset
(B) Increase in General Reserves
(C) Interest received
(D) Refund of Tax
Answer: B
8. While calculating cash flow from operating activities which will be deducted:
(A) Decrease in Prepaid Expenses
(B) Increase in Trade Payables
(C) Increase in Trade Receivables
(D) Decrease in Trade Receivables
Answer: C
9. While calculating cash flow from operating activities which will be added :
(A) Increase in Inventory
(B) Increase in Creditors
(C) Decrease in Bills Payable
(D) Increase in Trade Receivables
Answer: B
10. Cash from Operating activities will decrease due to :
(A) Increase in Current Assets
(B) Decrease in Current Liabilities
(C) Neither of the two
(D) Both A and B above
Answer: D
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