Classifying Items of Financial Statements

Q.

Payment of income tax can be classified as ___________.

1. Operating Activities

2. Financing Activities

3. Not a cashflow

4. Investing Activities

Q.

The opening balance of bank is shown in which side of the bank account?

1. Credit side

2. Debit side

3. No impact

4. None of these

Q.

Purchase of fixed assets will result in cash ___ from investing activities.

1. Inflow

2. Outflow

3. Either inflow or outflow

4. None of these

Q.

Issue of debentures can be classified as ___________.

1. Operating Activities

2. Investing Activities

3. Financing Activities

4. Not a cashflow

Q.

Cash flows are ________.

1. Inflows and Outflows of cash

2. Inflows and Outflows of cash equivalents

3. Inflows of cash

4. Inflows & outflows of both cash and Cash equivalents

Q.

What is a measure of the time delay between a business’ operational activities and the revenue it generates?

1. Turnover ratio

2. Cash conversion cycle

3. Days receivable

4. Days payable

Q.

The average time between giving the product to the customers and receiving payment is called _________.

1. None of these

2. Days Receivable

3. Days Payable

4. Cash conversion cycle

Q.

Purchase of machinery can be classified as ___________.

1. Operating Activities

2. Investing Activities

3. Financing Activities

4. Not a cashflow

Q.

In cash flow statement, the item of interest is shown in …..

1. Operating activities and financing activities

2. Operating activities, financing activities and investing activities

3. Operating activities and investing activities

4. Investing activities and financing activities

Q.

Cash flow from ____________ primarily reflect the company's purchases or sales of capital assets

1. Operating activities

2. Investing activities

3. Financing activities

4. None of these