Q.1.
Preparation of cash flow statement is :
- 44%
Mendatory
- 11%
Recommendatory
- 44%
Required under the Companies Act
- 0%
None of these
Mendatory
Q.2.
Issue of shares in consideration of purchase of plant and machinery results into :
- 10%
Inflow of Cash
- 0%
Outflow of Cash
- 80%
Neither Inflow nor Outflow
- 10%
None of these
Neither Inflow nor Outflow
Q.3.
If net profit is 7 50,000 after writing off goodwill 7 10,000 then the cash flow from operating activities will be:
- 44%
₹ 60,000
- 56%
₹ 40,000
- 0%
₹ 50,000
- 0%
₹ 30,000
₹ 60,000
Q.4.
If net profit is ₹ 35,000 after writing off good will ₹ 6,000 and loss on sale of furniture ₹ 1,000, cash flow from operating activities will be :
- 0%
₹ 35,000
- 62%
₹ 42,000
- 0%
₹ 29,000
- 38%
₹ 28,000
₹ 42,000
Q.5.
Cash sales in :
- 88%
Operating Activity
- 12%
Investing Activity
- 0%
Financing Activity
- 0%
None of these
Operating Activity
Q.6.
Cash from operating activities will decrease due to :
- 0%
Increase in Current Assets
- 0%
Decrease in Current Liabilities
- 12%
Neither of the two
- 88%
Both (a) and (b)
Both (a) and (b)
Q.7.
Which of the following is an example of Cash Flow from Operating Activities ?
- 0%
Purchase of Machinery
- 0%
Issue of Shares
- 88%
Purchases of Inventory for Cash
- 12%
Purchases of Investment
Purchases of Inventory for Cash
Q.8.
While calculating operating profit which will be added to net profit:
- 14%
Interest received
- 0%
Profit on sale of Asset
- 71%
Increase in General Reserve
- 14%
Refund of Tax
Increase in General Reserve
Q.9.
While calculating cash flow from operating netivities which will be deducted ?
- 0%
Increase in Creditors
- 100%
Increase in Debtors
- 0%
Decrease in Debtors
- 0%
Decrease in Prepaid Expenses
Increase in Debtors
Q.10.
While calculating cash flow from operating activities, which will be added ?
- 0%
Increase in Stock
- 100%
Increase in Creditors
- 0%
Decrease in Bills Payable
- 0%
Increase in Debtors
Increase in Creditors
Q.11.
An example of Cash Flow from Investing Activities :
- 0%
Cash Sales
- 0%
Issue of Shares
- 100%
Payment of cash for purchase of machinery
- 0%
Payment of Dividend
Payment of cash for purchase of machinery
Q.12.
An example of Cash Flows from Financing Activity is :
- 0%
Sale of goods
- 0%
Sale of Investment
- 100%
Cash receipts from issue of shares
- 0%
Interest received
Cash receipts from issue of shares
Q.13.
How will you treat payment of ‘Interest of Debentures’ while preparing a Cash Flow Statement ?
- 0%
Cash Flow from Operating Activities
- 0%
Cash Flow from Investing Activities
- 100%
Cash Flow from Financing Activities
- 0%
Cash Equivalents
Cash Flow from Financing Activities
Q.14.
Where will you show purchase of goodwill in Cash Flow Statement:
- 57%
Cash Flow from Operating Activities
- 43%
Cash Flow from Investing Activities
- 0%
Cash Flow from Financing Activities
- 0%
Cash Equivalent
Cash Flow from Investing Activities
Q.15.
Interest received by a finance company is classified under which kind of activity while preparing a Cash Flow Statement ?
- 100%
Cash Flow from Operating Activities
- 0%
Investing Activities
- 0%
Financing Activities
- 0%
Cash Equivalent
Cash Flow from Operating Activities
Q.16.
Which of the following item is considered as cash equivalents:
- 71%
Bank Overdraft
- 14%
Bills Receivable
- 0%
Debtors
- 14%
Short-term Investment
Bank Overdraft
Q.17.
Which of the following item is not considered as cash equivalents ?
- 0%
Bank Overdraft
- 14%
Commercial Papers
- 0%
Treasury Bills
- 86%
Investment
Investment
Q.18.
Cash payment to employees is a Cash Flow from:
- 62%
Operating Activities
- 0%
Investing Activities
- 38%
Finance Activities
- 0%
All the above
Operating Activities
Q.19.
Which of the following is not a Cash in Flow ?
- 0%
Sale of Fixed Asset
- 57%
Purchase of Fixed Asset
- 14%
Issue of Debentures
- 29%
Sale of Goods for Cash
Purchase of Fixed Asset
Q.20.
In cash flow statement, the item of ‘Interest’ is shown in:
- 17%
Operating Activities
- 0%
Investing Activities
- 17%
Financial Activities
- 67%
In both & (c)
In both (d) & (c)
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