Question : Cash flow statement is prepared for financial planning of -
Option 1: Long range
Option 2: Medium range
Option 3: Short range
Option 4: Very long range
Correct Answer: Short range
Solution : Making a cash forecast is typically beneficial for facilitating short-term planning. The cash flow statement lets you keep track of incoming and departing cash by displaying the source of that money. An organization's operational, investment, and financial operations all generate cash flow.
Hence the correct answer is option 3.
Question : Which of the following statements about the statement of cash flow is not correct?
Option 1: Cash flow statement is part of financial statement
Option 2: Cash flow statement is prepared on cash basis of accounts
Option 3: Cash flow statement is substitute of cash account
Option 4: Cash flow reports are generally prepared at the end of the accounting year
Question : Questions : Business Finance and Its Meaning
Statement 1: Financial planning is crucial for effective utilization of financial resources.
Statement 2: Financial planning only considers short-term objectives.
Option 1: Statement 1 is true, and statement 2 is false.
Option 2: Statement 1 is false, and statement 2 is true.
Option 3: Both statements 1 and 2 are true.
Option 4: Both statements 1 and 2 are false.
Question : Statement 1: Capital market deals with short-term financial instruments.
Statement 2: Capital market deals with long-term financial instruments.
Option 1: Statement 1 is true, and statement 2 is true.
Option 2: Statement 1 is true, but statement 2 is false.
Option 3: Statement 1 is false, and statement 2 is true.
Option 4: Statement 1 is false, and statement 2 is false.
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