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Analysis of Financial Statements Practice Test: Cash Flow Statement
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A Cash Flow Statement shows a business's ability to operate in the short and long term, based on how much cash is flowing into and out of the business.

Analysis of Financial Statements Practice Test: Cash Flow Statement
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25 Questions

1. Which of the following is not a cash outflow?
2. How will you treat payment of ‘Interest on Debentures’ while preparing a Cash Flow Statement?
3. Where will you show purchase of Goodwill in a Cash Flow Statement?
4. Cash flow example from an operating activity is
5. The basic financial statements include
6. Which of the following is not application of cash?
7. Cash flow statement is prepared for financial planning of
8. As per Accounting Standard-3, Cash Flow is classified into
9. When a fixed asset is bought as hire purchase, interest element is classified under ______ and loan element is classified under________.
10. 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 ____.
11. Which item comes under financial activities in cash flow?
12. If 6% Pref. share capital ₹2,00,000 were redeemed at a premium of 5%, while preparing Cash Flow Statement its effect on cash flow will be :
13. The objectives of Cash Flow Statement are
14. Cash Flow Statement is based upon
15. State whether cash deposited in bank will be classified under which kind of activity?
16. Which of the following statements are false?
17. How will you deal increase in the balance of ‘Securities Premium Reserve’ while preparing a Cash Flow Statement?
18. A firm that issues stocks and bonds to raise funds results in
19. Cash flow example from an investing activity is
20. A Ltd., engaged in the business of retailing of two wheelers, invested ₹50,00,000 in the shares of a manufacturing company. Dividend received on this investment will be :
21. Which of the following is source of cash?
22. Cash Flow Statement is also known as
23. In cash flows, when a firm invests in fixed assets and short-term financial investments results in
24. How will you treat Bank Overdraft in a Cash Flow Statement?
25. Which of the following is not source of cash?