Cashflow Statement Year 13

Uses of a cashflow statement?

• to foresee the profitability of a firm

• to predict the operating activities of the firm only

• to reconcile the opening and closing cash and cash equivalents of the business

• to handle the future sales and purchases of the business

Cashflow Statement for a limited company is made according to which IAS (international accounting standard)

• 1

• 5

• 7

• 11

What is the need for the standardised format of cashflow forecast?

• To make the work easier

• To prepare it by a professional accountant

• To help stakeholders understand it easily

• To make the it look beautiful.

Which of the following is not a cash outflow for the firm?

• interest payment

• tax

• dividends

• bonus issue

There are following three basic parts of cashflow statement

• Operating Activities, Investing Activities, Financing activities

• Operating Activities, Investing Activities, Raising Capital Activities

Why is there a need to prepare cashflow Statement for a limited company only?