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 READ: Not 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 READ: DISSOLUTION 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 READ: DISSOLUTION 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 READ: DISSOLUTION 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 READ: Not For Profit Organisations Notes