Question : What are the objectives of preparing cash flow statement?

Option 1: To determine the liquidity position of the company

Option 2: To Know about the requirement of cash in future

Option 3: To ascertain the gross inflows and outflows of cash

Option 4: All of the above

Question : A cash flow statement is also prepared to determine the :

Option 1: Debt Position of the orgnization

Option 2: Liquidity position of the orgnization

Option 3: Net profit position of the orgnization

Option 4: None of the above

Question : Which of the following statements is incorrect?

Option 1: Cash Flow Statement is not a substitute for Income Statement

Option 2: Cash Flow Statement shows only the inflows and outflows of Cash

Option 3: Income Statement shows both cash and non-cash items of revenue nature

Option 4: None of the above

Question : Which of the following statements is true?

Option 1: Cash Flow Statement shows inflows and outflows of Cash and Cash Equivalents.

Option 2: Cash Flow Statement gives information about sources and applications of Cash and Cash Equivalents for a specific period.

Option 3: It helps in planning investments and assessing the financial requirements of the enterprise.

Option 4: All of the above

Question : Which of the following statements is true?

Option 1: Cash Flow Statement shows inflows and outflows of Cash and Cash Equivalents.

Option 2: Cash Flow Statement gives information about sources and applications of Cash and Cash Equivalents for a specific period.

Option 3: It helps in planning investments and assessing the financial requirements of the enterprise.

Option 4: All of the above

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