Question : Which of the following is an example of operating activities for a non-Finance company?
Option 1: Cash receipts from sale of goods and/or rendering services;
Option 2: Cash receipts from royalties, fees and commission, etc.;
Option 3: Cash receipts from Trade Receivables (i.e., Debtors and Bills Receivable);
Option 4: All of the above
Correct Answer: All of the above
Solution : Answer = All of the above
In the case of a Non-Finance company, cash receipts from the sale of goods and cash collected from Royalties and from trade receivables are examples of operating activities as they represent core business operations generating cash inflows. Hence, the correct option is 4.
Question : An examples of cash inflows from operating activities other than cash Receipts from sale of goods and rendering of services.
Option 1: Royalties
Option 2: Commission Received
Option 3: Sale of Scrap
Question : Which of the following is not an example of operating activities for a Non-finance company?
Option 1: Cash payment for purchase of goods and/or availing services;
Option 2: Cash payment to Trade Payables (i.e., Creditors and Bills Payable);
Option 3: Cash payment of wages, salaries and other payments to employees;
Option 4: Dividend received on securities;
Question : Proceeds from Sale of Investments is an example of
Option 1: Operating Activities
Option 2: Investing Activities
Option 3: Financing Activities
Option 4: Cash and cash equivalent
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