Machinery Account in CFS

Provision for depreciation created during the year will be shown under which activity?

• Operating Activity

• Investing Activity

• Financing Activity

• None of the above

Machinery as on April 01, 2012 Rs. 50,000 Machinery as on March 31, 2013 Rs. 60,000

Accumulated Depreciation on April 01, 2012 Rs. 25,000 Accumulated Depreciation on March 31, 2013 Rs. 15,000

During the year, a Machine costing Rs 25,000 with Accumulated Depreciation of Rs 15,000 was sold for Rs 13,000.

Machinery sold during the year is Rs. ______ .

• 5000

• 13000

• 15000

• None of the above

Which of the following is not considered a cash flow from operating activities?

• Receipts from customers

• Payments to suppliers

• Sale of equipment

• Payments to employees

What is the primary purpose of preparing a cash flow statement?

• To show profitability

• To assess liquidity

• To evaluate financial position

• To determine tax obligations

Which of the following activities would be classified as investing activities?

• Issuing shares

• Purchasing machinery

• Paying dividends

• Collecting receivables