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
Correct Answer: Cash Flow from Financing activity and cash flow from Investing activity
Solution : Both the indirect and direct methods will result in the same cash flow for the financing and investing activity sections.
Hence the correct answer is option 1.
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
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 : 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 : Identify the transations as belonging to (i) Operating activity (ii) Investing activity (iii) Financing activity (iv) Cash and cash Equivalent -
(a) Cash received against revenue from service rendered
(b) Proceeds from issue from debenture
(c) Income tax paid on gain on sale of asset
(d) Mareketeble securities
Option 1: (a) Investing activity
(b) Operating activity
(c) Financing activity
(d) Cash and cash equivalent
Option 2: (a) Financing activity
(b) Cash and cash equivalent
(c) Investing activity
(d) Operating activity
Option 3: (a) Operating activity
(b) Financing activity
Option 4: (a) Cash and cash equivalent
(c) Operating activity
(d) Investing activity
Question : Interest paid by an investment company will come under which kind of activity while preparing. Cash-flow statement?
Option 1: Operating Activities
Option 2: Investing Activities
Option 3: Financing Activities
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