Cash Flow Statement useful for _____.

Statement of Changes in Financial Position on Cash basis

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Statement accounting for variation in cash

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Both:

Statement of Changes in Financial Position on Cash basis

Statement accounting for variation in cash

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Solution

The correct option is C
Both:

Statement of Changes in Financial Position on Cash basis

Statement accounting for variation in cash

Cash flow statement useful for both short term financial planning and ascertaining cash flow from various activities separately

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Similar questions

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

Q. On an accounting statement of cash flows an "increases(decrease) in cash and cash equivalent" appears as ________________.

Which of the following statement is true?

Statement A: Financial statements are prepared on the basis of accounting principles.

Statement B: Any changes in the accounting principles or method will affect the utility of the financial statements.

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.

Following is the Financial Statement of Garima Ltd., prepare cash flow statement.


Particulars	Note No.	31^st March 2017 (Rs)	31^st March 2016 (Rs)
I) Equity and Liabilities
1. Shareholders’ Funds
a) Share capital	1	4,40,000	2,80,000
b) Reserve and surplus-Surplus	2	40,000	28,000
2. Current Liabilities
a) Trade payables		1,56,000	56,000
c) Short-term provisions		12,000	4,000
(Provision for taxation)
Total		6,48,000	3,68,000
II) Assets
1. Non-current assets
a) Fixed assets
i) Tangible		3,64,000	2,00,000
2. Current assets
a) Inventories		1,60,000	60,000
b) Trade receivables		80,000	20,000
c) Cash and cash equivalents		28,000	80,000
d) Other current assets		16,000	8,000
Total		6,48,000	3,68,000

Notes to Accounts

Particulars	31st March 2017 (Rs)	31st March 2016 (Rs)
1. Share capital
a) Equity share capital	3,00,000	2,00,000
b) Preference share capital	1,40,000	80,000
	4,40,000	2,80,000
2. Reserve and surplus
Surplus in statement of profit and loss at the beginning of the year	28,000
Add: Profit of the year	16,000
Less: Dividend	4,000
Profit at the end of the year	40,000

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Cash Flow Statement useful for _____.

The correct option is C Both: Statement of Changes in Financial Position on Cash basis Statement accounting for variation in cash Cash flow statement useful for both short term financial planning and ​​​​ascertaining cash flow from various activities separately

The correct option is C
Both:

Statement of Changes in Financial Position on Cash basis

Statement accounting for variation in cash

Cash flow statement useful for both short term financial planning and ascertaining cash flow from various activities separately