CASH FLOW STATEMENT -1

Which of the following is not a Cash flow from Operating Activities?

• (a) Cash proceeds from sale of goods and services

• (b) Cash proceeds from sale of investments

• (c) Cash payments to employees

• (d) Cash payments to suppliers of goods

Cash flow statement is based on:

• (a) Accrual basis

• (b) Cash basis

• (c) Double entry System

• (d) None of these

Which of the following transactions does not involve flow of cash and cash equivalents?

• (a) Buy back of equity shares

• (b) Sale of investment

• (c) Paid to creditors

• (d) Cash deposited into Bank

Which of the following transactions is not shown under financing activity?

• (a) Repayment of Bank Loan

• (b) Proceeds from issue of shares

• (c) Subscribed shares of other company

• (d) Dividend paid

Which of the following transactions is not classified as investing activity?

• (a) Proceeds from sale of investment

• (b) Loan advanced

• (c) Proceeds from sale of stock-in-trade

• (d) Purchase of trademark

Which of the following items will not be deducted from Net Profit while calculating Net Cash from Operating Activities?

• (a) Increase in Trade Receivable

• (b) Decrease in Outstanding Expenses

• (c) Increase in Goodwill

• (d) Taxes paid

Which of the following is an Operating Activity for a finance company?

• (a) Purchase of investment

• (b) Dividend received

• (c) Interest received on Loan

• (d) All of these

Which of the following is an example of cash flow from investing activities?

• (a) Issue of shares

• (b) Purchase of fixed tangible assets

• (c) Purchase of current investments

• (d) Purchase of inventory for cash

Which of the following is not considered as cash equivalents?

• (a) Bank Overdraft

• (b) Commercial papers

• (c) Treasury bills

• (d) All of these

Cash payment to employees is a cash flow from:

• (a) Operating activities

• (b) Investing activities

• (c) Financing activities

• (d) It is not a cash flow.