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Cash Flow Statement MCQ Questions & Answers

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

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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

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Question 3

Statement of cash flows includes

A. Financing Activities
B. Operating Activities
C. Investing Activities
D. All of the Above

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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

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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

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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

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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

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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

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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

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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

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