Cash Flow Statement(12th Grade > Accountancy ) Questions and Answers
Explanation:-
Answer: Option A. ->
Investing activities
:
A
This transaction would affect investing activities since it is related to fixed assets
Explanation:-
Answer: Option B. ->
Added
:
B
Sale of fixed assets is added while calculating cash flow from investing activities.
Explanation:-
Answer: Option B. ->
A cash outflow for payment of interest
:
B
A cash outflow for payment of interest would be considered a cash-flow item from a "financing" activity
Explanation:-
Answer: Option C. ->
Financing activities
:
C
When a fixed asset is bought as hire purchase, interest element is classified under financing activities.
Explanation:-
Answer: Option A. ->
True
:
A
True. Cash flow from operating activities excludes money that is spent on capital expenditures.
Explanation:-
Answer: Option D. ->
None of these
:
D
None of these statements are true.
Explanation:-
Answer: Option B. ->
Added
:
B
Non-cash expenses like depreciation, depletion & amortization expense are added to net profit before tax under indirect method.
Explanation:-
Answer: Option D. ->
Operating, investing and financing activities
:
D
The statement of cash flows clarifies cash flows according to operating, investing and financing activities.
Explanation:-
Answer: Option A. ->
Payment of dividend
:
A
Example of cash flow from financing activity is payment of dividend
Explanation:-
Answer: Option D. ->
All three- Operating, Financial, Balance sheet
:
D
Cash flow statement shows the activities of - operating, financial, balance sheet items.