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
Option 4: None of the above
Correct Answer: Cash Flow from Operating Activities
Solution : Cash Flow from Operating Activities appears first on the cash flow statement. It begins with net income or loss and then makes adjustments to or deducts from it to arrive at a total cash flow figure.
Hence the correct answer is option 1.
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
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
Question : Adjustment of increase in the balance of 'Securities Premium' while preparing a Cash Flow Statement is
Option 1: shown as Cash from Financing activities
Option 2: shown as Cash from operating activities
Option 3: shown as Cash from investing activities
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