Question : What of the following statements will be considered false?
Option 1: Cash flow statements are useful for forming policies.
Option 2: The external analysis can be performed with a cash flow statement.
Option 3: The cash flow can be estimated with the help of a cash flow statement.vv
Option 4: None of the above
Correct Answer: None of the above
Solution : The cash flow statement is of a lot of use. It helps estimate future cash flow, helps people outside the company for external analysis, and the directors of a company can form policies based on the cash flow statement.
Hence the Correct answer is option 4.
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
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 : 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 : Tools or Techniques of Financial Statement Analysis are
Option 1: Comparative Statements
Option 2: Common-size Statements
Option 3: Ratio and Cash flow statement
Option 4: All of the above
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