Question : How will you treat Bank Overdraft in a Cash Flow Statement?

Option 1: Bank Overdraft is short-term borrowing and will be treated as operating activity.

Option 2: Bank Overdraft is short-term borrowing and will be treated as financing activity.

Option 3: Bank Overdraft is short-term borrowing and will be treated as cash and cash equivalents

Option 4: None of the above

Question : The cash flow statement begins with the :

Option 1: Cash Flow from Investing activity

Option 2: Cash flow from Financing activity

Option 3: Cash flow from Operating activity

Option 4: None of the above

Question : Which activities are same for computation of direct and indirect method?

Option 1: Cash Flow from Financing activity and cash flow from Investing activity

Option 2: Cash Flow from Operating activity and cash flow from Investing activity

Option 3: Cash Flow from Operating activity and cash flow from Financing activity

Option 4: None of the Above

Question : Cash Flow from Operating Activities + Cash Flow from Investing Activities + Cash
Flow from Financing Activities =

Option 1: Net increase in Cash and Cash equivalents

Option 2: Net Decrease in cash and cash equivalents

Option 3: Both 1 and 2

Option 4: None of the above

Question : Under which type of activity will you classic 'Commission and Royalty Received' while preparing the Cash Flow Statement?

Option 1: Operating activities

Option 2: Investing activities

Option 3: Financing activities

Option 4: Cash and cash equivalents