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Cashflow Statement Year 13

Total questions: 6

Worksheet time: 4mins

Name
Class
Date
1.

Uses of a cashflow statement?

a)

to foresee the profitability of a firm

b)

to predict the operating activities of the firm only

c)

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

d)

to handle the future sales and purchases of the business

2.

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

a)

1

b)

5

c)

7

d)

11

3.

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

a)

To make the work easier

b)

To prepare it by a professional accountant

c)

To help stakeholders understand it easily

d)

To make the it look beautiful.

4.

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

a)

interest payment

b)

tax

c)

dividends

d)

bonus issue

5.

There are following three basic parts of cashflow statement

a)

Operating Activities, Investing Activities, Financing activities

b)

Operating Activities, Investing Activities, Raising Capital Activities

6.

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

4 lines