Free Printable CASH FLOW STATEMENT -1

1.

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

a)

(a) Cash proceeds from sale of goods and services

b)

(b) Cash proceeds from sale of investments

c)

(c) Cash payments to employees

d)

(d) Cash payments to suppliers of goods

2.

Cash flow statement is based on:

a)

(a) Accrual basis

b)

(b) Cash basis

c)

(c) Double entry System

d)

(d) None of these

3.

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

a)

(a) Buy back of equity shares

b)

(b) Sale of investment

c)

(c) Paid to creditors

d)

(d) Cash deposited into Bank

4.

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

a)

(a) Repayment of Bank Loan

b)

(b) Proceeds from issue of shares

c)

(c) Subscribed shares of other company

d)

(d) Dividend paid

5.

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

a)

(a) Proceeds from sale of investment

b)

(b) Loan advanced

c)

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

d)

(d) Purchase of trademark

6.

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

a)

(a) Increase in Trade Receivable

b)

(b) Decrease in Outstanding Expenses

c)

(c) Increase in Goodwill

d)

(d) Taxes paid

7.

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

a)

(a) Purchase of investment

b)

(b) Dividend received

c)

(c) Interest received on Loan

d)

(d) All of these

8.

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

a)

(a) Issue of shares

b)

(b) Purchase of fixed tangible assets

c)

(c) Purchase of current investments

d)

(d) Purchase of inventory for cash

9.

Which of the following is not considered as cash equivalents?

a)

(a) Bank Overdraft

b)

(b) Commercial papers

c)

(c) Treasury bills

d)

(d) All of these

10.

Cash payment to employees is a cash flow from:

a)

(a) Operating activities

b)

(b) Investing activities

c)

(c) Financing activities

d)

(d) It is not a cash flow.

11.

Net Profit during the year 2,00,000
Loss on sale of plant 10,000
Profit on sale of furniture 40,000
Depreciation 20,000
Goodwill written off 40,000
What is the amount of cash from operations?

a)

(a) 1,70,000

b)

(b) 2,90,000

c)

(c) 2,30,000

d)

(d) 3,30,000

12.

When there is operating profit which of the items are deducted from operating profit to arrive at cash generated from operating activities?

a)

(a) Increase in current assets

b)

(b) Decrease in current assets

c)

(c) Increase in current liabilities

d)

(d) All of these

13.

Activities that are concerned with acquisitions and disposals of long-term assets such as plant, building etc. are:

a)

(a) Operating activities

b)

(b) Investing activities

c)

(c) Financing activities

d)

(d) All of these

14.

Income tax paid is concerned with:

a)

(a) Operating activities

b)

(b) Investing activities

c)

(c) Financing activities

d)

(d) None of these

15.

While preparing cash flow statement by indirect method, which of the following items are added back to profit during the year to arrive at operating profit:

a)

(a) Transfer to general reserve

b)

(b) Increase in creditors

c)

(c) Increase in inventory

d)

(d) Decrease in outstanding expenses

CASH FLOW STATEMENT -1

Total questions: 15

Worksheet time: 8mins

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