Statement of Cash Flows

Cash Flow Statement is based upon
 

• Cash basis of accounting
• Accrual basis of accounting
• Credit basis of accounting 
• None of the above

Which of the following statements are false?
A) Cash Flow Statement is helpful in the formation of policies.
B) Cash Flow Statement is useful for external analysis
C) Cash Flow Statement is helpful in estimating future cash flow 

• Both A and B
• Both A and C
• Both B and C 
• None of the above

Cash from operating activities consist of ____

• Operational Net Profit
• Decrease in CA
• Increase in CL
• All

Purchase of goodwill will appear in ____ activity?

• Operating
• Investing
• Both
• None

Cash deposited into bank will result in ____ of cash

• Inflow
• Outflow
• No flow
• All

Payment of rent relates to _____ activity

• Operating
• Financing
• Investing
• All

Rent received by a financing company is classified under _____ activity.

• Financing
• Investing
• Operating
• None

Dividend received by the financing company is classified under ______ activity.

• Operating
• Financing
• Investing
• None

Which of the following is an example of a cash out-flow for a business?

• payments to creditors
• sale of goods
• payment from debtors
• receiving a loan from the bank

If a cashflow forecast suggests that a firm will run out of cash, which would help the problem?

• purchase more fixed assets
• repay a bank loan
• pay suppliers immediately
• delay paying suppliers