Cash Flow Statement MCQs : This section focuses on the "Cash Flow Statement". These Multiple Choice Questions (MCQs) should be practiced to improve the Cash Flow Statement skills required for various interviews (campus interview, walk-in interview, company interview), placement, entrance exam and other competitive examinations.
Question 1
The purchase value of assets over its serviceable life is categorised as
A. Appreciated Liabilities
B. Appreciated Assets
C. Depreciation
D. Appreciation
Question 2
A firm that issues stocks and bonds to raise funds results in
A. Decreases Cash
B. Increases Cash
C. Increases Equity
D. Increases Liabilities
Question 3
Statement of cash flows includes
A. Financing Activities
B. Operating Activities
C. Investing Activities
D. All of the Above
Question 4
In cash flows, when a firm invests in fixed assets and short-term financial investments results in
A. Increased Equity
B. Increased Liabilities
C. Decreased Cash
D. Increased Cash
Question 5
Cash flow example from an investing activity is
A. Issue of Debenture
B. Repayment of Long-term Loan
C. Purchase of Raw Materials for Cash
D. Sale of Investment by Non-Financial Enterprise
Question 6
The statement of cash flow clarifies cash flows according to
A. Operating and Non-operating Flows
B. Inflow and Outflow
C. Investing and Non-operating Flows
D. Operating, Investing, and Financing Activities
Question 7
Cash flow example from a financing activity is
A. Payment of Dividends
B. Receipt of Dividend on Investment
C. Cash Received from Customers
D. Purchase of Fixed Asset
Question 8
Cash flow example from an operating activity is
A. Purchase of Own Debenture
B. Sale of Fixed Assets
C. Interest Paid on Term-deposits by a Bank
D. Issue of Equity Share Capital
Question 9
Which item comes under financial activities in cash flow?
A. Redemption of Preference Share
B. Issue of Preference Share
C. Interest Paid
D. All the above
Question 10
The basic financial statements include
A. Statement of Cash Flows
B. Statement of Retained Earnings
C. Balance Sheet and Income Statement
D. None of the Above