Question : While preparing Cash Flow Statement, purchase of goodwill is treated as :

Option 1: Operating activity

Option 2:  Financing activity

Option 3: Investing activity

Option 4: Extraordinary item

Question : Calculate the resulting cash flow and state the nature of cash flow from the following information: 

Acquired machinery for 3,50,000 by issuing cheque.

Option 1:  Investing activity and outflow 3,50,000

Option 2: Investing activity and inflow 3,50,000

Option 3:  Investing activity and no flow

Option 4: Operating activity and outflow 3,50,000

Question : Which year marked the third general election in India?  

Option 1: 1952  

Option 2: 1957  

Option 3: 1962  

Option 4:  1967  

Question : Arrange the following in proper sequence while preparing Cash Flow Statement :

(A) Net cash flow from operating activities

(B) Cash flow from financing activities

(C) Cash flow from investing activities

(D) Calculate net profit before tax and extraordinary items in working note

Choose the correct answer from the options given below:

Option 1: (A), (B), (C), (D)

Option 2: (D), (A), (C),(B)

Option 3:  (B), (A), (D), (C)

Option 4:  (C), (B), (D), (A)

Question : 1. Identify the correct sequence of the following steps involved in calculating cash flows from operating activities of a company :

(A) Operating profit before working capital changes

(B) Cash generated from operations

(C) Income tax paid

(D) Net cash flow from operating activities

(E) Goodwill amortised

Choose the correct answer from the options given below:

Option 1:  (E), (C), (D), (A), (B)

Option 2:  (E), (A), (D), (B), (C)

Option 3:  (E), (A), (B), (C), (D)

Option 4: (A), (B), (C), (D), (E)