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
Correct Answer: All of the above
Solution : Answer = All of the above
To determine the sources, application and net changes of cash and cash equivalents under operating, investing and financing activities of the firm are the objective of the cash flow statement. Hence, the correct option is 4.
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 : 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
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 : Under which type of activity will you classic 'Commission and Royalty Received' while preparing the Cash Flow Statement?
Option 1: Operating activities
Option 2: Investing activities
Option 3: Financing activities
Option 4: Cash and cash equivalents
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