1. An example of Cash Flow from Investing Activities :
Cash Sales
Issue of Shares
Payment of cash for purchase of machinery
Payment of Dividend

2. An example of Cash Flows from Financing Activity is :
Sale of goods
Sale of Investment
Cash receipts from issue of shares
Interest received

3. How will you treat payment of ‘Interest of Debentures’ while preparing a Cash Flow Statement ?
Cash Flow from Operating Activities
Cash Flow from Investing Activities
Cash Flow from Financing Activities
Cash Equivalents

4. Where will you show purchase of goodwill in Cash Flow Statement:
Cash Flow from Operating Activities
Cash Flow from Investing Activities
Cash Flow from Financing Activities
Cash Equivalent

5. 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

6. Which of the following item is considered as cash equivalents:
Bank Overdraft
Bills Receivable
Debtors
Short-term Investment

7. Which of the following item is not considered as cash equivalents ?
Bank Overdraft
Commercial Papers
Treasury Bills
Investment

8. Cash payment to employees is a Cash Flow from:
Operating Activities
Investing Activities
Finance Activities
All the above

9. Which of the following is not a Cash in Flow ?
Sale of Fixed Asset
Purchase of Fixed Asset
Issue of Debentures
Sale of Goods for Cash

10. In cash flow statement, the item of ‘Interest’ is shown in:
Operating Activities
Investing Activities
Financial Activities
In both (d) & (c)

11. Which of the following is not a Cash Outflow:
Increase in Creditors
Increase in Debtors
Increase in Stock
Increase in prepaid expenses

12. 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

13. Income tax refund is a cash of:
Source
Application
Both (a) & (b)
None of these

14. Cash Flow Statement in based upon:
Cash basis of accounting
Accrual basis of accounting
(a) and (b) both
None of these

15. Cash Flow Statement is related to:
AS-3
AS-6
AS-9
AS-12

16. Cash Flow Statement is prepared from:
Balance Sheet
Profit & Loss Account
Additional Information
All of these

17. Following Is included in Cash Flow from Operating Activities:
Royalties, Fees, Commission
Purchase of Debentures
Purchase of Machinery
issue of Shares

18. Following are included in cash equivalent:
Treasury Bill
Trade Bill
Bank Deposits of Short Maturity Period
All of above

19. Claims received from Insurance Companies are treated as:
Cash Flow from Operating Activities
Cash Flow from Investing Activities
Cash Flow from Financing Activities
None of these

20. Which activity comes under ‘Operating Activities’ ?
Purchase of Land
Issue of Debentures
Proceeds from Issuance of Equity Shares
Cash Sales

21. Which of the following is not a cash inflow ?
Decrease in Debtors
Issue of Debentures
Decrease in Creditors
None of these

22. Which one of following is not a non-cash item ?
Cash Sales
Goodwill written off
Depreciation
Provision of Bad Debts

23. Cash flow statement according to AS-3 is mandatory to:
All enterprises
Companies listed on a stock exchange
Enterprises having turnover expending 50 Rs crore
(b) & (c) both

24. Decrease in Current Asset is……….in operating profit
Subtracted
Added
Divided
Multiplied

25. 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