Question : Why non-cash transactions are ignored while preparing a Cash Flow Statement?

Option 1: Because non-cash transactions do not affect Cash

Option 2: Because non-cash transactions affected cash

Option 3: Because non-cash transactions affected financing activities

Option 4: Because non- cash transactions affected investing activities

Question : If a machine whose original cost is Rs.40,000 having accumulated depreciation Rs.12,000, were sold for Rs.34,000 then while preparing Cash Flow Statement its effect on cash flow will be :

Option 1: Cash flow from financing activities Rs.34,000

Option 2: Cash flow from financing activities Rs.6,000

Option 3: Cash flow from investing activities Rs.34,000

Option 4: Cash flow from investing activities Rs.6,000

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 : Under which type of activity will you classify 'Proceeds from Sale of Goodwill while preparing a Cash Flow Statement?

Option 1: Operating activities

Option 2: Investing activities

Option 3: Financing activities

Option 4: Cash and cash equivalents

Question : Under which type of activity will you classify Income Tax paid while preparing the Cash Flow Statement?

Option 1: Operating activities

Option 2: Investing activities

Option 3: Financing activities

Option 4: Cash and cash equivalents