Categories of Cash Flow Statement

Q.

A financial statement that shows the inflows and outflows of cash during a particular period of time is known as:

1. Income statement

2. Statement of retained earnings

3. Balance sheet

4. Statement of cash flows

Q. Cash Flow Statement is based upon the basis of accounting.

1. cash
2. credit
3. accrual
4. payment

Q.

The statement of cash flows clarifies cash flows according to :

1. Inflows and outflows

2. Operating and non-operating flows

3. Operating, investing and financing activities

4. Investing and Non-operating flows

Q.

Simple interest on a sum of money is $\frac{1}{3}$rd of the sum itself and number of years is thrice the rate percent. Find the rate of interest.

Q. Statement shows the inflows and outflows of cash during a particular period.

1. Income
2. Retained Earning
3. Balance Sheet
4. Cash Flow

Q.

The main key activity of cash flow activities is:

1. Operating activities

2. Financing Activities

3. Investing Activities

4. None of these

Q. _______ arise because of the failure to differentiate between capital expenditure and revenue expenditure and capital receipts and revenue receipts.

1. Errors of partial omission
2. Errors of complete omission
3. Compensating errors
4. Errors of principle

Q.

Is cash basis accounting allowed under GAAP?

Q.

Cash flow statement is classified into ..........

1. Operating activities and investing activities

2. Operating activities, financing activities and investing activities

3. Investing activities and financing activities

4. Operating activities and financing activities

Q. State the nature of financial statements.

Q. Which of the following is not a cash inflow?

1. Decrease in debtors
2. Issue of shares
3. Decrease in creditors
4. Sale of fixed assets

Q.

In the long run, a business must generate positive net cash flow from which of the following activities, if it is to survive?

1. Operating activities

2. Investing activities

3. Financing activities

4. Non cash activities

Q.

Cash flow statement shows the activities:

1. Operating only

2. Financing only

3. Investing only

4. All three- Operating, Financing, Investing

Q.

Why is a statement of cash flows needed?

Q. Treating a revenue expense as a capital expenditure is an example of __________.

1. errors of omission
2. errors of principle
3. compensating errors
4. errors of commission

Q. State the primary objective of preparing 'Cash Flow Statement'.

Q.

Cash flow from ___ is an item on the cash flow statement that reports the aggregate change in a company's cash position resulting from investment gains or losses.

1. Operating activities

2. Investing activities

3. Financing activities

4. None of these

Q.

Cash Flow Statement is based upon ............

1. Cash basis of accounting

2. Accrual basis of accounting

3. Credit basis of accounting

4. None of these

Q. Cash flow from activities reports the change in a company's cash position resulting from investment gains.

1. operating
2. investing
3. financing
4. payment

Q.

Accounts payable would be reported within which of the following financial statements?

1. Income statement

2. Statement of cash flows

3. Balance sheet

4. Statement of stockholders’ equity.

Q. Explain the reasons where the balance shown by the bank pass book does not agree with the balance as shown by the bank account column of the cash book.

Q.

In particular, which cash flow can uncover a company's true profitability?

1. Operating

2. Investing

3. Financing

4. None of these

Q.

A statement of cash flows has ........... sections.

1. 3

2. 5

3. 6

4. 4

Q. Purchase account comprises of transactions of ___________.

1. Cash and credit purchase
2. Purchase return
3. Purchase or stationery
4. Purchase of furniture

Q. What decisions are taken by the company in given para.

Q. Simple petty cash book is not very popular.

1. True
2. False

Q. What is petty cash book? How it is prepared?

Q. Cash flow statement reveals _______.

1. The effects of transactions involving movement of cash
2. A statement depicting change in cash position from one period to another
3. Flow of funds
4. Both (A) & (B)

Q. State True or False.

Only cash transactions and personal transactions are recorded in Single entry.

Q.

It’s one of the purest measures of cash sources and uses.

1. Operating Activities

2. Investing Activities

3. Financing Activities

4. None of these