Top 50+ Solved Cash Flow Statement MCQ Questions Answer
Q. Statement of cash flows includes
a. financing activities
b. operating activities
c. investing activities
d. all of the above
Q. In cash flows, when a firm invests in fixed assets and short-term financial investments results in
a. increased equity
b. increased liabilities
c. decreased cash
d. increased cash
Q. A firm that issues stocks and bonds to raise funds results in
a. decreases cash
b. increases cash
c. increases equity
d. indian overseas bank
Q. The purchase value of assets over its serviceable life is categorised as
a. appreciated liabilities
b. appreciated assets
c. depreciation
d. appreciation
Q. The basic financial statements include
a. statement of cash flows
b. income statement
c. balance sheet
d. all of the above
Q. Cash flow example from a financing activity is
a. payment of dividends
b. receipt of dividend on investment
c. cash received from customers
d. purchase of fixed asset
Q. Cash flow example from an investing activity is
a. issue of debenture
b. repayment of long-term loan
c. purchase of raw materials for cash
d. sale of investment by non-financial enterprise
Q. Cash flow example from an operating activity is
a. purchase of own debenture
b. sale of fixed assets
c. interest paid on term-deposits by a bank
d. issue of equity share capital
Q. Which item comes under financial activities in cash flow?
a. redemption of preference share
b. issue of preference share
c. interest paid
d. all the above
Q. As per Accounting Standard-3, Cash Flow is classified into
a. operating activities and investing activities
b. investing activities and financing activities
c. operating activities and financing activities
d. operating activities, financing activities and investing activities
Q. Cash Flow Statement is also known as
a. statement of changes in financial position on cash basis
b. statement accounting for variation in cash
c. both a and b
d. none of the above.
Q. The objectives of Cash Flow Statement are
a. analysis of cash position
b. short-term cash planning
c. evaluation of liquidity
d. comparison of operating performance
Q. Cash Flow Statement is based upon
a. cash basis of accounting
b. accrual basis of accounting
c. credit basis of accounting
d. none of the above
Q. Which of the following statements are true?
a. cash flow reveals only the inflow of cash
b. cash flow reveals only the outflow of cash
c. cash flow is a substitute for income statement
d. cash flow statement is not a replacement of funds flow statement.
Q. In case of other enterprises cash flow arising from interest paid should be classified as cash flow from________ while dividends and interest received should be stated as cash flow from ____.
a. operating activities, financing activities
b. financing activities, investing activities
c. investing activities, operating activities
d. none of the above