Cash Flow Statement Test

Result

Cash Flow Statement Test - 5

Score
-
out of -
Rank
-
out of -

TIME Taken - -

SHARING IS CARING

If our Website helped you a little, then kindly spread our voice using Social Networks. Spread our word to your readers, friends, teachers, students & all those close ones who deserve to know what you know now.

Weekly Quiz Competition

Question 1
1 / -0

Is payment for purchase of fixed assets will be classified as operating activity for both finance and non – finance company?

A
Yes these are Operating activities

B
No these are investing activities

C
No these are financing activities

D
Not to be recorded

Solution

Purchase of fixed assets will be classified as investing activity for both finance and non – finance company. As fixed Assets are Non Current Investment.
Question 2
1 / -0

Cash Flow from Operating activities + Cash flow from investing activities + Cash flow from financing activities =?

A
Net Increase/Decrease in Share Capital

B
Net Increase/Decrease in Long term borrowings

C
Net Increase/Decrease in Non-current Assets

D
Net Increase/Decrease in cash & cash equivalents

Solution

After calculating cash flows from different three activities, they are added to know the net increase or decrease in cash and cash equivalents.
Question 3
1 / -0

Purchase of marketable securities will result in _________.

A
Increase in Investing activities.

B
Decrease in cash and cash equivalents

C
Increase in cash and cash equivalents

D
No effect on cash and cash equivalents

Solution

Purchase of marketable securities will make no effect on cash and cash equivalents.

Reason: Cash going and marketable securities coming --- both are part of cash and cash equivalents. At the same time there is increase and decrease in cash and cash equivalents.
Question 4
1 / -0

Cash flow arises when the net effect of a transaction _____ the amount of cash or cash equivalents.

A
Either increase or decrease

B
Only decrease

C
Only Increase

D
None of these

Solution

Cash flow arises when the net effect of a transaction will increase or decrease the amount of cash or cash equivalents. As Cash has been changed.
Question 5
1 / -0

Following are the unamortized expenses except _______________.

A
Discount on issue of debentures

B
Loss on issue of debentures

C
Issue of share capital

D
Share issue expenses

Solution

Issue of share capital is not the part of unamortized expenses. Discount on issue of debentures, Loss on issue of debentures, and Share issue expenses are unamortized expenses.
Question 6
1 / -0

Decrease in the Preference Share Capital means -----------.

A
Proceeds from Preference shares

B
Issue of Preference Shares

C
Redemption of Preference Shares

D
No change in Preference share capital

Solution

Decrease in the Preference Share Capital means redemption of preference shares. It is an outflow of cash and financing activity.
Question 7
1 / -0

Interest paid on bank overdraft will come in ___________.

A
financing activities

B
Investment activities

C
Less in operating activities

D
Both finance and investing activities

Solution

Interest paid on debentures will come under Financing Activities as bank overdraft is a financial activity.
Question 8
1 / -0

Which of the following transactions would not create a cash flow?

A
Payment of dividend.

B
Goods purchased in cash

C
Amortization of a patent.

D
Sale of office equipment at book value.

Solution

Amortization of patent will not create a cash flow as there is no cash transaction.
Question 9
1 / -0

Value of copyrights was Rs.68,000 in the year 31st March 2015 but after one year on 31st March 2016 value of copyrights was Rs.1,00,000. How it will effect cash flow statement?

A
Less Rs. 32,000 in investing activities

B
Less Rs.1,00,000 in investing activities

C
Add Rs. 32,000 in investing activities

D
Add Rs. 1,00,000 in investing activities

Solution

Increase in the value of copyrights means company has purchased copyrights (Non Current Assets). So Less Rs. 32,000 in investing activities.
Question 10
1 / -0

Which of the following item is not added or deducted while preparing cash flow statement?

A
Dividend Received

B
Dividend Paid

C
Bonus shares issued

D
Purchase of goodwill

Solution

Issue of bonus shares will not affect the preparation of cash flow statement as in this transaction no cash involve.

User

Question Analysis

Correct -
Wrong -
Skipped -

My Perfomance

Score
-
out of -
Rank
-
out of -

Re-Attempt Weekly Quiz Competition

Cash Flow Statement Test - 5

Result

Cash Flow Statement Test - 5

Score

-

Rank

-

SHARING IS CARING

Question 1

Yes these are Operating activities

No these are investing activities

No these are financing activities

Not to be recorded

Solution

Question 2

Net Increase/Decrease in Share Capital

Net Increase/Decrease in Long term borrowings

Net Increase/Decrease in Non-current Assets

Net Increase/Decrease in cash & cash equivalents

Solution

Question 3

Increase in Investing activities.

Decrease in cash and cash equivalents

Increase in cash and cash equivalents

No effect on cash and cash equivalents

Solution

Question 4

Either increase or decrease

Only decrease

Only Increase

None of these

Solution

Question 5

Discount on issue of debentures

Loss on issue of debentures

Issue of share capital

Share issue expenses

Solution

Question 6

Proceeds from Preference shares

Issue of Preference Shares

Redemption of Preference Shares

No change in Preference share capital

Solution

Question 7

financing activities

Investment activities

Less in operating activities

Both finance and investing activities

Solution

Question 8

Payment of dividend.

Goods purchased in cash

Amortization of a patent.

Sale of office equipment at book value.

Solution

Question 9

Less Rs. 32,000 in investing activities

Less Rs.1,00,000 in investing activities

Add Rs. 32,000 in investing activities

Add Rs. 1,00,000 in investing activities

Solution

Question 10

Dividend Received

Dividend Paid

Bonus shares issued

Purchase of goodwill

Solution

User

Question Analysis

My Perfomance

Score

-

Rank

-

Results Announcement on: coming Monday

Stay Tuned: We’ll update you on your result via email or SMS.