Understanding Financial Statements

Q.

Dividend income is ________ activity.

1. Inflow

2. Outflow

3. Either inflow or outflow

4. None of these

Q.

Purchase of machinery can be classified as ___________.

1. Operating Activities

2. Investing Activities

3. Financing Activities

4. Not a cashflow

Q.

Unrealized gains and losses arising from foreign exchange rates are ___

1. Cash flows from Operating activities

2. Cash flows from Operating activities

3. Cash flows from Financing activities

4. Not cash flows

Q.

Purchase of machinery by means of issue of shares should be ___ from cash flow statement

1. Subtracted

2. Included

3. Excluded

4. None of these

Q.

When the instalment paid in respect of a fixed asset acquired on deferred payment basis includes both interest and loan, the interest element is classified under _________ activities.

1. Operating

2. Not a cashflow

3. Investing

4. Financing

Q.

Increase in debtors in the cash flow statement is __________.

1. added
2. deducted
3. multiplied
4. not treated

Q. Increase in creditors is in the cash flow statement.

1. added
2. deducted
3. multiplied
4. not treated

Q. Depreciation expense is a/an item.

1. non-operating
2. operating
3. non-classified
4. non-cash

Q. account is debited while recording credit sales in books of account.

1. Cash
2. Creditors
3. Debtors
4. Sales

Q. Dividend income is a/an item.

1. non-operating
2. operating
3. non-classified
4. non-cash