Question : Net Increase/Decrease in cash and cash equivalents + Cash and Cash equivalents at the beginning of the period =..........
Option 1: Cash and Cash equivalents at the end of the period
Option 2: Cash flow from operating Activities
Option 3: Cash flow from investing Activities
Option 4: Cash flow from Financing Activities
Correct Answer: Cash and Cash equivalents at the end of the period
Solution : Answer = Cash and Cash equivalents at the end of the period.
The sum of Net Increase/Decrease in Cash and Cash equivalents + Cash and Cash equivalents at the beginning of the period is equal to Cash and Cash equivalents at the end of the period. The formula described corresponds to the cash flow from operating activities. Hence, the correct option is 1.
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 : The objectives of Cash Flow Statement are:
Option 1: To determine the sources (receipts) of Cash and Cash Equivalents under Operating, Investing and Financing Activities of the enterprise.
Option 2: To determine applications (payments) of Cash and Cash Equivalents under Operating, Investing and Financing Activities of the enterprise.
Option 3: To determine net change in Cash and Cash Equivalents.
Option 4: All of the above
Question : Net increase in working capital other than cash and cash equivalents will increase, decrease or not change cash flow from operating activities.
Option 1: Increase
Option 2: Decrease
Option 3: Both A and B
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