Chapter-11 ➤ Cash Flow Statement 1. Cash from operation is equal to : Net Profit + Increase in Current Assets Net Profit + Decrease in Current Liabilities Operating Profit + Adjustment of Current Assets and Current Liabilities All of the above 2. Interest received by a finance company is classified under which kind of activity while preparing a Cash Flow Statement ? Cash Flow from Operating Activities Investing Activities Financing Activities Cash Equivalent 3. While calculating profit from operating activities, which will be added back to net profit: Goodwill Written off Depreciation Loss oh Sale of Fixed Assets All the Above 4. Which of the following is not a Cash Outflow: Increase in Creditors Increase in Debtors Increase in Stock Increase in prepaid expenses 5. Cash from operating activities will decrease due to : Increase in Current Assets Decrease in Current Liabilities Neither of the two 1st and 2nd Both 6. Which of the following is not a cash inflow ? Decrease in Debtors Issue of Debentures Decrease in Creditors None of these 7. Which of the following is not the source of Cash ? Purchase of Fixed Assets Funds from Operations Issue of Debentures Sale of Fixed Assets 8. Following are true about cash equivalent: More Liquid Short-term Investment Minimum risk Maturity of 3 months or less than 3 months All the above 9. Following Is included in Cash Flow from Operating Activities: Royalties, Fees, Commission Purchase of Debentures Purchase of Machinery issue of Shares 10. While calculating operating profit which will be added to net profit: Interest received Profit on sale of Asset Increase in General Reserve Refund of Tax Loading … Question 1 of 10
