Question :
Option 1: Purchase of marketable securities for Rs.25,000 cash
Option 2: Sales of land for Rs.28,000 cash
Option 3: Sale of 2,500 shares (held as an investment) for Rs.15 each
Option 4: Purchase of equipment for Rs.500 cash
Correct Answer: Purchase of marketable securities for Rs.25,000 cash
Solution : Purchase of marketable securities is considered as cash and cash equivalents and so does not form the part of investing cash flow.
Hence the correct answer is option 1.
Pick the odd one out:
Option 1: Cash in hand
Option 2: Cash at bank
Option 3: Marketable Securities
Option 4: Non-current Investments
Question : Ramesh marks his article at Rs. 6,000, and after allowing a discount of 20%, he still earns a 60% profit. What is the cost (in Rs.) of the article?
Option 1: 3,600
Option 2: 4,800
Option 3: 3,000
Option 4: 4,200
Question : An amalgam of metal has which other element?
Option 1: Carbon
Option 2: Gold
Option 3: Silver
Option 4: Mercury
Option 1: Deposited Rs.10,000 into bank
Option 2: Withdrew cash from bank Rs.14,500
Option 3: Sale of machinery of the book value of Rs.74,000 at a loss of Rs.9,000
Option 4: Converted Rs.2,00,000, 9% debentures into equity shares
Question : Calculate the resulting cash flow and state the nature of cash flow from the following information:
Acquired machinery for 3,50,000 by issuing cheque.
Option 1: Investing activity and outflow 3,50,000
Option 2: Investing activity and inflow 3,50,000
Option 3: Investing activity and no flow
Option 4: Operating activity and outflow 3,50,000
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