Cash Flow Statement Quiz

ABC Ltd. has Machinery written down value of which on 1st April 2019 was ₹ 8,60,000 and on 31st March, 2020 was ₹ 9,50,000. Depreciation for the year was ₹ 40,000. At the beginning of the year, a part of the machinery was sold for ₹ 25,000, which had a written down value of ₹ 20,000. Calculate Cash Flow from Investing Activities.

• a) ₹ 1,25,000

• b) ₹ (1,25,000)

• c) ₹ 2,50,000

• d) ₹ (2,50,000)

Exe Ltd. has a balance in Provision for Tax Account of ₹ 50,000 and ₹ 75,000 as of 31st March, 2019 and 2020 respectively. It made a provision for tax during the year of ₹ 65,000. The amount of tax paid during the year was

• a) ₹ 50,000

• b) ₹ 60,000

• c) ₹ 40,000

• d) ₹ 75,000

Which of the following are regarded as financial activities in the cash flow?

• The interest that is paid

• The issue of preference share

• The redemption of the preference share

• All of the above

An activity that falls under operating activity in the cash flow statement is:

• The sales of the fixed asset

• The interest that is paid on term deposits by a bank

• The purchase of the own debenture

• The sewing of equity share capital

Adjustment for Proposed Dividend is:

• a) Add the previous year’s proposed dividend under net profit before tax and extraordinary items and
  deduct it under Financing Activity.

• b) Add the current year’s proposed dividend under net profit before tax and extraordinary items and deduct
  previous year’s proposed dividend under Financing Activity.

• c) Add the current year’s proposed dividend under Net Profit before Tax and Extraordinary Items and deduct
  current year’s proposed dividend under Financing Activity

• d) None of the above

Income received in advance will affect the : 20,000 (2023) - 50,000 (2024)

• Increasing Current Assets -30,000

• Decreasing Current Assets -30,000

• Increasing Current Liabilities -30,000

• Decreasing Current Liabilities -30000

Buy-back of shares is an extra-ordinary item for

• a) Operating Activities

• b) Investing Activities

• c) Financing Activities

• d) Cash and Cash Equivalents

Redemption of Debentures for cash would result in

• a) Cash Inflow

• b) Cash Outflow

• c) No Flow of Cash

• d) May be Inflow or Outflow

The activity which is recorded as investing activity in cash flow is:

• Sale of investment by non-financial enterprise

• Issuing a debenture

• Paying back a loan

• The raw material purchased with cash

Machinery value - 2021 - 50,000 & 2022 - 47,000 will results in _______

• Sale of Assets inflow in investing activities - 3,000

• Depreciation of Machinery - 3,000

• Purchase of Machinery - 3000

• None of these