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MCQs for Cash Flow Statement
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MCQs for Cash Flow Statement
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25 Questions

1. Mention the net amount of ‘Source’ or ‘Use’ of cash when a fixed asset having book value of ₹15,000 is sold at a loss of ₹5,000.
2. The statement of cash flows clarifies cash flows according to
3. How will you deal increase in the balance of ‘Securities Premium Reserve’ while preparing a Cash Flow Statement?
4. Which of the following is source of cash?
5. How will you treat payment of dividend in a Cash flow statement?
6. While calculating operating profit which will be added to net profit
7. An example of Cash Flows from Investing Activity is :
8. While calculating cash flow from operating activities which will be added :
9. How will you classify loans given by Tata Finance Company?
10. How will you treat Bank Overdraft in a Cash Flow Statement?
11. A company receives a dividend of ₹2 Lakhs on its investment in other company’s shares. In case of a Finance Company, it will be classified under which kind of activity?
12. An example of cash flow from operating activity is :
13. An example of Cash Flows from Financing Activity is :
14. How will you classify deposits by customers in Axis Bank?
15. Which of the following item is not considered as Cash Equivalents?
16. Cash flow statement is prepared for financial planning of
17. Cash from Operating activities will decrease due to :
18. Dividend paid by a manufacturing company is classified under which kind of activity while preparing cash flow statement?
19. Which of the following is incorrect about the statement of cash flows?
20. Interest paid by an investment company will come under which kind of activity while preparing cash flow statement?
21. An example of cash flow from investing activity is :
22. 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 :
23. Interest received by a finance company is classified under which kind of activity while preparing a Cash flow statement?
24. Which of the following is not application of cash?
25. Which of the following is an example of cash flow from Operating Activities?

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