MyQuestionIcon

5

You visited us 5 times! Enjoying our articles? Unlock Full Access!

Preparing CFS-Direct Method

Objective Typ...

Question

Objective Type Questions :
State whether following statements are true or false :

Purchase of fixed asset is operating cash flow.

Open in App

Solution

False

Explanation: Purchase of fixed asset is an investing cost for the business. Therefore, it is an investing cash outflow for the business. On the other hand, operating cash flow consists of those activities of business that are related to the operations of the business.

Suggest Corrections

thumbs-up

0

Similar questions

Q. State whether the following statement is True or False.
Purchase of fixed asset is operating cash flow.

Q. Objective Type Questions :
State whether following statements are true or false :

Financial statements include only balance sheet.

Q. Objective Type Questions :
State whether following statements are true or false :

Net profit shows quick ratio.

Q. Objective Type Questions :
State whether following statements are true or false :

Gross profit depends upon net sales.

Q. Objective Type Questions :
State whether following statements are true or false :

ROI is calculated on ownership capital only.

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Introduction to Cash Flow Statement

ACCOUNTANCY

Watch in App

explore_more_icon

Explore more

Preparing CFS-Direct Method

Standard XII Accountancy

Join BYJU'S Learning Program

CrossIcon