Question : Which of the following statement is incorrect?

Option 1: Loss on sale of fixed assets is added back and profit on sale of fixed assets is deducted from net profit while arriving at the cash flow from operating activities

Option 2: Depreciation is added back to net profit while calculating cash flows from operating activities

Option 3: Depreciation increase the value of net profit without reducing the cash balance as it is a non- cash item

Option 4: None of the above

Question : In cash flow statement, Adjustment for payment of tax is

Option 1: Payment of tax will be deducted under 'Cash flows from operating activities'

Option 2: Payment of tax will be added under 'Cash flows from operating activities'

Option 3: Payment of tax will be deducted under 'Cash flows from Financing activities'

Option 4: None of the above

Question : In cash flow statement, Adjustment for payment of tax is

Option 1: Payment of tax will be deducted under 'Cash flows from operating activities'

Option 2: Payment of tax will be added under 'Cash flows from operating activities'

Option 3: Payment of tax will be deducted under 'Cash flows from Financing activities'

Option 4: None of the above

Question : Where will you show purchase of intangible assets in a Cash Flow Statement?

Option 1: Shown as outflow under 'Cash flows from investing activities'.

Option 2: Shown as outflow under 'Cash flows from operating activities'.

Option 3: Shown as inflow under 'Cash flows from investing activities'.

Option 4: None of the above

Question : Where will you show purchase of intangible assets in a Cash Flow Statement?

Option 1: Shown as outflow under 'Cash flows from investing activities'.

Option 2: Shown as outflow under 'Cash flows from operating activities'.

Option 3: Shown as inflow under 'Cash flows from investing activities'.

Option 4: None of the above