Question : The statement of cash flow is designed with the purpose of helping users to assess each of the following, except -
Option 1: The profitibility of the entity
Option 2: The major source of cash receipts during the period
Option 3: The reasons why net cash flows from operating activity differ rom net income
Option 4: The ability of entity to remain liquid
Correct Answer: The profitibility of the entity
Solution : A cash flow statement's goal is to give a thorough account of what happened to a company's cash over a given time period, also referred to as the accounting period. Based on how much money is coming into and going out of the company, it shows how well a company can operate both short- and long-term.
Hence the Correct answer is option 1.
Question : Which activities are same for computation of direct and indirect method?
Question : The cash flow statement begins with the :
Question : Which of the following is not an activity of Cash flow statement :
Question : Cash Flow from Operating Activities + Cash Flow from Investing Activities + Cash Flow from Financing Activities =
Question : The objectives of Cash Flow Statement are:
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