Multiple Choice Questions
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| Multiple Choice Questions of Cash Flow Statement |
1.
Cash flow statement is a statement that shows an enterprise’s
Answer-:
inflows and outflows of cash during a particular accounting period
2.
A cash flow statement prepared to reconcile
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the opening and closing balance of an accounting period
3.
A cash flow statement shows the impact of operating, investing and financing
activities on
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cash
4.
Cash comprises of
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cash in hand and demand deposits with bank
5.
Operating Activities are the principle
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revenue producing activities of the enterprise
6.
Investing activities are
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the acquisition and disposal of long-term assets not include in cash
equivalents
7.
Cash payment to acquire share will be treated as cash flow from
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Investing Activities
8.
Cash received by issuing share will be treated as cash flow from
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financing activities
9.
Purchase of fixed assets by issuing equity share will be treated as cash flow
from
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financing activities
10.
Payment of dividend will be treated as cash flow
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financing activities
11.
Cash payment to acquire intangible assets will be treated as cash flow from
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investing activities
12.
Cash payments to suppliers for goods and services will be treated as cash flow
from
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operating activities
13.
Cash receipts from royalties for providing know-how will be treated as cash
flow from
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operating activities
14.
Dividends received by financial enterprise is shown in the Cash Flow Statement
under:
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operating activities
15.
Dividends received by other than financial enterprise is shown in the Cash Flow
Statement under:
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investing activities
16.
Interest paid by other than financial enterprise is shown in the Cash Flow
Statement under:
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financing activities
17.
Interest received by other than financial enterprise is shown in the Cash Flow
Statement under:
Answer-:
investing activities
18.
How should be revaluation of a fixed asset treated in a cash flow statement?
Answer-:
it should not be included in cash flow statement.
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