Cash flow

Cash deposit with the bank with a maturity date after two months belongs to which of the following in the cash flow statement?

• Financing Activities
• Cash and Cash Equivalent
• Operating Activities
• Investing Activities

Answer explanation

Definition

Interest paid by an investment company will come under which kind of activity while preparing a cash flow statement?

• Cash Flow from Investing Activities.
• Cash Flow from Financing Activities.
• No Cash Flow.
• Cash Flow from Operating Activities.

Answer explanation

Definition

Dividend paid by a manufacturing company is classified under which kind of activity while preparing cash flow statements?

• Cash Flow from Investing Activities
• Cash Flow from Financing Activities
• No Cash Flow
• Cash Flow from Operating Activities

Answer explanation

Definition

A Mutual Fund Company receives a dividend of ₹20 Lakhs on its investments in another company’s shares. Where will it appear in a cash flow statement?

• Cash Flow from Investing Activities
• Cash Flow from Financing Activities
• No Cash Flow
• Cash Flow from Operating Activities

Answer explanation

Definition

How will you deal with an increase in the balance of ‘Securities Premium Reserve’ while preparing a cash flow statement?

• Cash Flow from Investing Activities
• Cash Flow from Financing Activities
• Cash Equivalent
• Cash Flow from Operating Activities

Answer explanation

Definition

Financing activities bring changes in _____?

• Size and composition in owners’ equities
• Borrowings of the enterprise
• Size and composition of owners’ equities and borrowings of the enterprise
• None of the options are correct

Answer explanation

Definition

Cash flows arising from taxes on income shall be separately disclosed and shall be classified as cash flows from…......?

• Operating Activities
• Financing Activities
• Investing activities

Answer explanation

Definition

A financial statement that portrays the cash inflows and outflows of cash during a particular period of time is called _____?

• An Income Statement
• Statement of Retained Earnings
• Balance Sheet
• Statement of Cash Flow

Answer explanation

Definition

A statement of cash flows, when used in conjunction with the rest of the financial statements, provides information that enables users to evaluate the __________?

• changes in an entity’s profit before tax
• organisational structure of an entity
• entity’s ability to affect the amounts and timing of cash flows in order to adapt to changing circumstances and opportunities
• All of the above

Answer explanation

Definition

What are the examples of non cash transactions

• the acquisition of assets either by assuming directly related liabilities or by means of a lease
• the acquisition of an entity by means of an equity issue
• the conversion of debt to equity.
• All of the above