Cash Flow Statement Test - 10

According to Balance Sheet format given in Indian Companies Act 2013 Deferred Tax Liabilities are shown under the heading of Non - Current Liabilities.

Refund of income tax is the part of operating activities as Income tax is a operating activities and Income tax refund shows in cash flow from operating activities while preparing cash flow statement.

Sale of machinery is concerned with Investing Activities as cash inflow from sale of company's Non Current Assets.

Repayment of Redemption of preference Shares is concerned with financing activities. Cash is going out in the form of Redemption of preference Shares.

Divedend received is added to investing activities while calculating Cash flow from investing activities in Cash Flow statement. As Dividend Recieved on investment in other companies.

Sale of Copyrights is concerned with investing activities as Copyrights is a intangible assets of a company.

Purchase of shares or debentures are concerned with investing activities as it is a investment in other company's share and/or debentures.

Buy back of equity share is a financing activities as its effect on company's financial position (share holder's fund).

Repayment of Long term loans is a financing activities as it reduce company's Non current liabilities.

Income tax is concerned with only operating activities. Tax paid is deducted at the end while calculating Cash flow from operating activities in Cash Flow statement.