Question : Short-term investments are considered as Cash and Cash Equivalent. Hence, they do not affect cash flows and are therefore not considered while preparing cash flow statements.

Option 1: True

Option 2: False

Option 3: Can't say

Option 4: None of the above

Question : Which of the following statements is false?

Option 1: Cash Flow Statement gives information relating to surplus or deficit of cash

Option 2: An enterprise, therefore, can decide about the Short-term Investments of the surplus and can arrange the Short-term Credit in case of deficit.

Option 3: A comparison of the actual cash flows with the budgeted cash flows of the year shows the extent to which Cash and Cash Equivalents were generated (sourced) and applied (used) as per the plan.

Option 4: None of the above

Question : Which of the following statements is false?

Option 1: Cash Flow Statement gives information relating to surplus or deficit of cash

Option 2: An enterprise, therefore, can decide about the Short-term Investments of the surplus and can arrange the Short-term Credit in case of deficit.

Option 3: A comparison of the actual cash flows with the budgeted cash flows of the year shows the extent to which Cash and Cash Equivalents were generated (sourced) and applied (used) as per the plan.

Option 4: None of the above

Question : Non-cash transactions are ____________while preparing Cash Flow Statement.

Option 1: not considered

Option 2: considered

Option 3: both 1 and 2

Option 4: None of the above

Question : Non-cash transactions are ____________while preparing Cash Flow Statement.

Option 1: not considered

Option 2: considered

Option 3: both 1 and 2

Option 4: None of the above