Question : Sold machinery of original cost Rs. 2,00,000 with an accumulated depreciation of Rs. 1,60,000 for Rs. 60,000. Cash flow from investing activities is
Option 1: Rs 60,000
Option 2: Used in investing activities Rs 60,000
Option 3: Rs 20,000
Option 4: None of the above
Correct Answer: Rs 60,000
Solution : Answer = Rs 60,000
Cash flow from investing activities Sale of machinery=Rs 60,000. Hence, the correct option is 1.
Question : Acquired machinery for Rs. 2,50,000 paying 20% down and executing a bond for the balance payable. Cash flow from investing activities is
Option 1: Cash used in investing activities Rs 2,00,000
Option 2: Cash used in investing activities Rs 50,000
Option 3: Cash used in investing activities RS 1,50,000
Question : If a machine whose original cost is Rs.40,000 having accumulated depreciation Rs.12,000, were sold for Rs.34,000 then while preparing Cash Flow Statement its effect on cash flow will be :
Option 1: Cash flow from financing activities Rs.34,000
Option 2: Cash flow from financing activities Rs.6,000
Option 3: Cash flow from investing activities Rs.34,000
Option 4: Cash flow from investing activities Rs.6,000
Question : The cash flow statement begins with :
Option 1: Cash Flow from Operating Activities
Option 2: Cash Flow from Financing Activities
Option 3: Cash Flow from Investing Activities
Question : If 6% Pref. share capital of Rs. 2,00,000 were redeemed at a premium of 5%, while preparing Cash Flow Statement its effect on cash flow will be :
Option 1: Cash used from financing activities Rs.2,12,000
Option 2: Cash received from financing activities Rs.2,12,000
Option 3: Cash used (Payment) from financial activities Rs.2,10,000
Option 4: Cash used (Payment) from financial activities 2,00,000
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