Cash Flow Statement MCQ
Cash Flow Statement MCQ
11. Which of the following is incorrect about the statement of cash flows?
(A) It provides information about the cash receipt and cash payments of an enterprise.
(B) It reconciles ending cash balance with the balance as per bank statement.
(C) It provides information about the operating, investing and financing activities.
(D) It explains the deviation of cash from Earnings.
Answer: B
12. The statement of cash flows clarifies cash flows according to
(A) Operating and non-operating flows
(B) Investing and non-operating flows
(C) Inflows and outflows
(D) Operating, investing and financing activities
Answer: D
13. An example of cash flow from operating activity is :
(A) Purchase of own debenture
(B) Sale of fixed assets .
(C) Interest paid on term-deposits by a bank
(D) Issue of equity share capital
Answer: C
14. An example of Cash Flow from Operating Activity is :
(A) Cash receipts from sale of goods and services
(B) Sale of long-term investments
(C) Interest Received
(D) Issue of Debentures
Answer: A
15. Which of the following is an example of cash flow from Operating Activities?
(A) Issue of Shares
(B) Purchase of Machinery
(C) Purchase of Investment
(D) Purchase of Inventory for Cash
Answer: D
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16. An example of cash flow from investing activity is :
(A) Issue of debenture
(B) Repayment of long-term loan
(C) Purchase of raw materials for cash
(D) Sale of investment by non-fmancial enterprise.
Answer: D
17. An example of Cash Flows from Investing Activity is :
(A) Cash Revenue from Operations
(B) Commission Received
(C) Payment of cash for purchase of fixed assets
(D) Dividend paid
Answer: C
18. An Example of cash flow from financing activity is :
(A) Payment of dividend
(B) Receipt of dividend on investment
(C) Cash received from customer
(D) Purchase of fixed asset
Answer: A
19. An example of Cash Flows from Financing Activity is :
(A) Credit Revenue from Operations
(B) Cash receipts from issue of shares
(C) Sale of Investments
(D) Interest Received
Answer: B
20. If a machine whose original cost is ₹40,000 having accumulated depreciation ₹12,000, were sold for ₹34,000 then while preparing Cash Flow Statement its effect on cash flow will be :
(A) Cash flow from financing activities ₹34,000
(B) Cash flow from financing activities ₹6,000
(C) Cash flow from investing activities ₹34,000
(D) Cash flow from investing activities ₹6,000
Answer: C
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