Question :

Cash outflows are the cost incurred on some project which are represented by -

Option 1:

Negative numbers

Option 2:

Positive numbers

Option 3:

Relative numbers

Option 4:

No effect

Question :

Which of the following statements states the difference between a cash flow statement and a cash budget?

Option 1:

The cash flow statement shows the movement of cash whereas the cash budget shows no cash movement

Option 2:

The cash flow statement is a part of the cash budget

Option 3:

Both 1 & 2

Option 4:

The cash flow statement shows the cash movement of the historical period whereas the cash budget shows the cash movement of the future period

Question :

Incomes/expenses that arise from transactions that are clearly different from the ordinary business activities and therefore are not expected to incur frequently are called:- 

Option 1:

Prior period items

Option 2:

Extraordinary items

Option 3:

Abnormal items

Option 4:

Non-ordinary items

Question : Which of the following is not added as a Non-Cash Expense?

Option 1: Depreciation

Option 2: Goodwill amortized

Option 3: Interest on Debentures paid

Option 4: All of these

Question : Which of the following statement is incorrect?

Option 1: Loss on sale of fixed assets is added back and profit on sale of fixed assets is deducted from net profit while arriving at the cash flow from operating activities

Option 2: Depreciation is added back to net profit while calculating cash flows from operating activities

Option 3: Depreciation increase the value of net profit without reducing the cash balance as it is a non- cash item

Option 4: None of the above