Question : Which of the following statements is true?

Option 1: Cash Flow Statement shows inflows and outflows of Cash and Cash Equivalents.

Option 2: Cash Flow Statement gives information about sources and applications of Cash and Cash Equivalents for a specific period.

Option 3: It helps in planning investments and assessing the financial requirements of the enterprise.

Option 4: All of the above

Question : Which of the following statements is true?

Option 1: Cash Flow Statement shows inflows and outflows of Cash and Cash Equivalents.

Option 2: Cash Flow Statement gives information about sources and applications of Cash and Cash Equivalents for a specific period.

Option 3: It helps in planning investments and assessing the financial requirements of the enterprise.

Option 4: All of the above

Question : Income and expenditure account records income and expenditure of :

Option 1: Capital nature only 

Option 2: Revenue nature only

Option 3: both Revenure and capital nature 

Option 4: None of  the above 

Question : Which of the following statements about the statement of cash flow is not correct?

Option 1: Cash flow statement is part of financial statement

Option 2: Cash flow statement is prepared on cash basis of accounts

Option 3: Cash flow statement is substitute of cash account

Option 4: Cash flow reports are generally prepared at the end of the accounting year

Question :

Which of the following statements states the difference between a cash flow statement and a cash budget?

Option 1:

The cash flow statement shows the movement of cash whereas the cash budget shows no cash movement

Option 2:

The cash flow statement is a part of the cash budget

Option 3:

Both 1 & 2

Option 4:

The cash flow statement shows the cash movement of the historical period whereas the cash budget shows the cash movement of the future period