Practice Test

Q1) Cash flow statement provides information that Show Answer

Q2) Cash received from sale of machinery is treated as cash inflow from Show Answer

Q3) One of the following in not treated as cash equivalent Show Answer

Q4) Unrealized gains and losses arising in foreign exchange are Show Answer

Q5) Payment relating to capitalized R& D cost is a cash flow from Show Answer

Q6) One of the following is considered as cash transaction Show Answer

Q7) AS 3 is mandatory for Show Answer

Q8) Securities premium collected amounts to cash flow from Show Answer

Q9) Issue of debentures is a cash flow from Show Answer

Q10) Redemption of debentures is a cash flow from Show Answer

Q11) Decrease in debtors Show Answer

Q12) Decrease in current liabilities Show Answer

Q13) Dividend paid causes cash flow from Show Answer

Q14) Interest received causes cash flow from Show Answer

Q15) Proceeds from earthquake disaster settlement is cash flow from Show Answer

Q16) Repayment of lease liabilities is a cash flow from Show Answer

Q17) Loans to subsidiaries is a cash flow from Show Answer

Q18) Income tax payment is a cash flow from. Show Answer

Q19) Investment on 1-1-2008 Rs.2,10,000 Investment on 31-12-2008 Rs.50,000 During the year the company purchased investments costing of Rs.2,16,000 and sold some investments at a loss of 20% of book value. The cash inflow from investing activities will be, Show Answer

Q20) Investment on 1-1-2008 Rs.2,10,000 Investment on 31-12-2008 Rs.50,000 During the year the company purchased investments costing of Rs.2,16,000 and sold some investments at a loss of 20% of book value. The cash outflow from investing activities will be, Show Answer

Q21) Furniture as on 31-3-2008 Rs.5,00,000 Furniture as on 31-3-2009 Rs.8,00,000 During the year the company charged depreciation of Rs.50,000 and furniture costing Rs.12,000, depreciation provided Rs.7,000 was sold at 60% profit on book value. Cash in flow from investing activities will be, Show Answer

Q22) Furniture as on 31-3-2008 Rs.5,00,000 Furniture as on 31-3-2009 Rs.8,00,000 During the year the company charged depreciation of Rs.50,000 and furniture costing Rs.12,000 depreciation provided Rs.7,000 was sold at 60% profit on book value. Cash in flow from investing activities will be, Show Answer

Q23) X's capital on 1-1-2008 Rs.1,48,000 on 31-12-2008 Rs.1,49,000 Drawing during the year Rs.26,000 Profit for the year Rs.17,000. Cash inflow from financing activities will be Show Answer

Q24) X's capital on 1-1-2008 Rs.1,48,000 on 31-12-2008 Rs.1,49,000 Drawing during the yearRs.26,000 Profit for the year Rs.17,000. Cash outflow from financing activities will be Show Answer

Q25) Debentures on 31-3-2008 Rs.4, 00,000, on 31-3-2009 Rs.3,00,000 Cash flow from financing activities will be Show Answer

Q26) Cash flow statement is prepared as per AS__ Show Answer

Q27) Cash flow is classified into _____ Show Answer

Q28) Cash receipt from sale of goods is cash flow from________ Show Answer

Q29) Refund of income tax is cash flow from ________ Show Answer

Q30) Payment to employees is a cash flow from________ Show Answer

Q31) Cash received from sale of machine is a cash flow from ___ Show Answer

Q32) Purchase of building is a cash flow from _________ Show Answer

Q33) Purchase of investment is a cash flow from_________ Show Answer

Q34) Issue of debentures is a cash flow from __________ Show Answer

Q35) Redemption of Pref. shares is a cash flow from _________ Show Answer

Q36) Interest on loan paid is a cash flow from ________ Show Answer

Q37) Dividend paid should be shown as cash flow from _______ Show Answer

Q38) Decrease in debtors increases cash flow from ________ Show Answer

Q39) Decrease in creditors decreases cash flow from _________ Show Answer

Q40) Depreciation is ______to net profit to get cash flow from operating activities Show Answer

Q41) Goodwill W/off is added to NP to get cash flow from Show Answer

Q42) Decrease in working capital _____ flow from operating activities. Show Answer

Q43) Increase in working capital reduces cash flow from_____ Show Answer

Q44) Collection from debtors is calculated from_________ Show Answer

Q45) Purchase & sale of fixed assets is ascertained from ______ Show Answer

Q46) Interest paid is Show Answer

Q47) Cash from business operations can be determined directly from income statement. Show Answer

Q48) Working capital from business operations can be determined from P & L A/c. Show Answer

Q49) Sources of cash should always be more than uses of cash in the cash flow statement. Show Answer

Q50) Interest on debenture is a part of cash flow from operating activities. Show Answer

Q51) Interest on deposits in bank is put under investing activities. Show Answer

Q52) Sources of cash must be equal to uses of cash. Show Answer

Q53) Revaluation of building affects cash flow. Show Answer

Q54) Sale of machinery is a source of cash from financing activities. Show Answer

Q55) Cash flow statement is mandatory for all firms. Show Answer

Q56) Cash flow statement is prepared as per AS3. Show Answer

Q57) Issue of share capital creates cash flow from financial activities. Show Answer

Q58) In cash flow statement cash balance at the beginning and at the end of the year are shown separately Show Answer

Q59) Change in current assets is adjusted in cash flow from operating activities Show Answer

Q60) Increase in current liabilities is adjusted in cash flow from operation. Show Answer

Q61) Redemption of debenture creates a cash flow from financing activities. Show Answer

Q62) Redemption of pref. shares creates cash flow from financing activities. Show Answer

Q63) There is only one direct method for determination of cash flow from operating activities. Show Answer

Q64) Income tax paid is adjusted in cash flow from operating activities. Show Answer

Q65) Refund of public deposits is an application of cash. Show Answer

Q66) Depreciation creates a cash flow. Show Answer

Q67) Purchase of vehicles is an application of cash from investing activities Show Answer

Q68) Cash flow from operating activities is calculated by Direct method and Indirect method.. Show Answer

Q69) For the purpose of Cash Flow Statement, 'Cash Equivalents' include Show Answer

Q70) AS______is related to cash flow statement. Show Answer

Q71) The acquisition & disposal of short term assets and investment Show Answer

Q72) A cash flow statement is useful for _____term planning Show Answer

Q73) Income tax paid Show Answer

Q74) In the cash flow statement cash & cash equivalents includes Show Answer

Q75) Tax on capital gains on sales of fixed asset is Show Answer

Q76) following are the extra ordinary items except. Show Answer

Q77) Cash purchases Show Answer

Q78) the term cash includes Show Answer

Q79) Issue of Bonus share Show Answer

Q80) cash paid to suppliers Show Answer

Q81) fully depreciated equipment was scrapped and no salvage was realised. Show Answer

Q82) cash payment for salaries Show Answer

Q83) For Cash Flow Statement, 'Cash ' include Show Answer

Q84) For cash flow statement interest paid is Show Answer

Q85) Cash received by issue of shares Show Answer

Q86) Issue of shares against the purchase of plant & machinery is Show Answer

Q87) Producing activities of the enterprises is Show Answer

Q88) Non-cash transaction is Show Answer

Q89) Acquiring & selling of a business Show Answer

Q90) Bills receivable endorsed to creditors. Show Answer

Q91) Scrap sale is Show Answer

Q92) Acquiring of Land & building will be classified as Show Answer

Q93) Redemption of debentures Show Answer

Q94) Receipts of Dividend will be Show Answer

Q95) Cash received by sale of shares of a company should be classified as Show Answer

Q96) Repayment of short term loan will be classified as Show Answer

Q97) Cash generated under direct method includes Show Answer

Q98) Marketable securities will be Show Answer

Q99) Payment of dividend will be Show Answer

Q100) Purchase of goods for cash will be Show Answer

Q101) For Cash flow statement interest received is Show Answer

Q102) Dividend paid is considered as Show Answer

Q103) Dividend received is considered as Show Answer