Question : ----------------items of operating activities that are typical of and pertaining to Hotel Industry.

Option 1: Cash collection from sale of fixed assets

Option 2: Cash collection from providing room service

Option 3: Both 1 and 2

Option 4: None of the above

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

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

Question : Claim received against damage of fixed assets say because of an earthquake is an example of ____________.

Option 1: Extraordinary items of Operating activities

Option 2: Extraordinary items of Investing Activities

Option 3: Extraordinary items of financing Activities

Option 4: None of the above

Question : Claim received against damage of fixed assets say because of an earthquake is an example of ____________.

Option 1: Extraordinary items of Operating activities

Option 2: Extraordinary items of Investing Activities

Option 3: Extraordinary items of financing Activities

Option 4: None of the above