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CASH FLOW MCQ'S

CASH FLOW MCQ'S

Q.1→  A cash flow statement is to be prepared as per the :

(a) Accounting Standard 2 

(b) Accounting Standard 3

(c) Accounting Standard 4

(d) Accounting Standard 26

 

Ans→ (b) Accounting Standard 3 

 

Q.2→ Which of the following is an objective of the Cash flow statement

(a) To Ascertain the source of cash and cash equivalents

(6) To Ascertain the application of cash and Cash Equivalent

(c) To Ascertain the net change in cash and cash equivalents

(d) All of the Above

ALSO READNot For Profit Organisations Notes

 

Ans→ (d) All of the Above

 

Q.3→  Which of the following is not a limitation of the Cash flow statement

(a) Window dressing

(b) Ignore Non-cash transaction

(c) Historical in nature

(d) Efficient cash management

 

Ans→ (d) Efficient cash management

 

Q.4→  Which of the following statement is true

(a) If the amount of goodwill is increased during the current year, the difference is treated as a purchase of goodwill

(b) If the amount of goodwill is decreased during the current year, it will be treated as a sale of goodwill

(c) Dividend paid by a Real estate company is investing Activities

(d) Marketable Securities are part of Financing Activities

 

Ans→ (a) If the amount of goodwill is increased during the current year, the difference is treated as a purchase of goodwill

ALSO READDISSOLUTION OF A PARTNERSHIP FIRM NOTES

 


Q.5→ Which of the following is not considered as cash and cash equivalents?

(a) Short term deposit in a bank

(b) Commercial Paper

(c) Certificate of deposit

(d) Bank overdraft

 

Ans→ (d) Bank overdraft

 

Q.6→  Which of the following item is considered as Cash Equivalents?

(a) Marketable securities

(b) Cash Credit

(C) Debtors

(d) Bills receivable

 

Ans→ (a) Marketable securities

 

Q.7→  Investment with the bank with a maturity date after two months belongs to which of the following in the

cash flow statement:

(a) Operating Activities

(b) Investing Activities

(C) Financing Activities

(d) Cash and Cash equivalents

 

Ans→ (d) Cash and Cash equivalents

 

Q.8→  Purchase of Marketable securities will result in

(a) Increase in cash and cash equivalents

(b) Decrease in cash and cash equivalents

(c) Increase in investing Activities

(d) No effect on cash and cash equivalents

 

Ans→ (d) No effect on cash and cash equivalents


ALSO READDISSOLUTION OF A PARTNERSHIP FIRM NOTES

 

Q.9→ Cash flow from Operating Activities = 28,000; Cash used In investing Activities = 32,000; Cash flow from Financing Activities = 5,000; Opening cash and cash equivalents = 25,000. Closing cash and cash equivalents will be :

(a) 24,000                                                (b) 90,000

(c) 26,000                                                (d)  1,000

Ans→ (c) 26,000

Q.10→ Cash used in Operating Activities = 10,000; Cash used in Investing Activities = 40,000: Cash flow from Financing Activities - 25,000; Closing cash and cash equivalents - 20,000. Opening cash and cash equivalents will be:

(a) 35.000

(b) 95,000

(c) 45,000

(d) 25,000

 

Ans→ (c) 45,000

 

Q.11→ . Cash flow from operating Activities = 50,000; Cash flow from investing Activities = 40,000;

Opening cash and cash equivalents = 20,000; Closing cash and cash equivalents = 35,000. Cash flow from (Used in) Financing

Activities will be:

(a) Cash flow from Financing Activities 70,000 (b) Cash Used in Financing Activities 75,000

(C) Cash flow from Financing Activities 65,000 (d) Cash Used in Financing Activities 65,000

 

Ans→  (b) Cash Used in Financing Activities 75,000

 

Q.12→  Cash used in operating Activities = 40,000; Cash used in Financing Activities = 20,000; Opening cash

and cash equivalents = 50,000; Closing cash and cash equivalents = 30,000. Cash flow from (Used in) Investing Activities will

be :

(a) Cash flow from Investing Activities 40,000 (b) Cash Used in Investing Activities 40,000

(c) Cash flow from Investing Activities 30,000 (d) Cash Used in Investing Activities 30,000

 

Ans→ (a) Cash flow from Investing Activities 40,000


ALSO READDISSOLUTION OF A PARTNERSHIP FIRM NOTES

 

Q.13→  Cash flow from Investing Activities = 20,000; Cash used in Financing Activities = 20,000; Opening

cash and cash equivalents = 20,000; Closing cash and cash equivalents = 20,000. Cash flow from (Used in) Operting Activities

will be :

 

(a) Cash flow from Operating Activities 20,000

(b) Cash flow Used in Operating Activities 20,000

(c) Cash flow from Operating Activities 40,000

(d) Cash flow from (Used in) Operating Activities Nil

 

Ans→ (d) Cash flow from (Used in) Operating Activities Nil

 

Q.14→  Pick the odd one out :

(a)Cheques in hand

(b) Certificate of deposit

(c) Cash Credit

(d)Commercial Paper

 

Ans→ (c) Cash Credit

 

Q.15→  Which of the following is not an operating Activities

(a) Cash sales

(b) Cash Purchase

(c) Rent Paid

(d) Rent received

 

Ans→ (d) Rent received

ALSO READNot For Profit Organisations Notes


  

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