Cash Flow Statement

Which of the following is an example of a non-cash expense that is ADDED back to Net Profit when calculating Cash Flow from Operating Activities?

1. Payment of wages
2. Amortization of Patents
3. Purchase of Raw Materials
4. Payment of Office Rent

In a Cash Flow Statement, "Proposed Dividend for the Previous Year" is treated as:

1. Added to profit to find Net Profit before Tax AND deducted under Financing Activities as cash paid
2. Deducted under Operating Activities AND added under Investing Activities
3. Ignored completely
4. Added under Financing Activities as cash inflow

Which of the following represents a Cash INFLOW under Financing Activities?

1. Redemption of Preference Shares
2. Buy-back of Equity Shares
3. Issue of Debentures at a Premium
4. Payment of Interim Dividend

Provision for Tax at the beginning of the year was ₹50,000 and at the end of the year was ₹70,000. Tax paid during the year was ₹40,000. What is the amount of Provision for Tax created during the year to be added back to Net Profit?

1. ₹60,000
2. ₹40,000
3. ₹20,000
4. ₹70,000

Under AS-3, "Bank Overdraft" and "Cash Credit" facilities are treated as:

1. Operating Activities
2. Components of Cash and Cash Equivalents
3. Financing Activities
4. Investing Activities

If the opening balance of Cash and Cash Equivalents is ₹40,000, net cash generated from Operating Activities is ₹1,10,000, net cash used in Investing Activities is ₹80,000, and net cash used in Financing Activities is ₹20,000, what is the closing balance of Cash and Cash Equivalents?

1. ₹50,000
2. ₹10,000
3. ₹70,000
4. ₹30,000

How is "Interest Paid on Debentures" presented in the Cash Flow Statement of a Non-Financial Enterprise?

1. Cash Inflow under Operating Activities
2. Cash Outflow under Financing Activities
3. Cash Outflow under Investing Activities
4. Cash Inflow under Financing Activities

Using the data from Question 7, what is the amount of Machinery purchased during the year (Cash Outflow under Investing Activities)?

1. ₹1,50,000
2. ₹2,00,000
3. ₹2,50,000
4. ₹1,80,000

Machinery account showed an opening balance of ₹4,00,000 and a closing balance of ₹5,50,000. Accumulated Depreciation was ₹80,000 at the start and ₹1,00,000 at the end of the year. During the year, machinery costing ₹50,000 (accumulated depreciation ₹15,000) was sold for ₹30,000. What is the cash inflow from the sale of machinery?

1. ₹30,000
2. ₹35,000
3. ₹50,000
4. ₹5,000

Which of the following items is treated as a "Cash Equivalent" under AS-3?

1. Bank Fixed Deposit for 3 years
2. Investment in Equity Shares of a listed company
3. Treasury Bills with a maturity period of 60 days
4. Long-Term Government Bonds

A company purchased machinery worth ₹5,00,000 by issuing 50,000 Equity Shares of ₹10 each as full consideration. How will this transaction be disclosed in the Cash Flow Statement?

1. Included under Cash Flow from Investing Activities (Outflow ₹5,00,000)
2. Included under Cash Flow from Financing Activities (Inflow ₹5,00,000)
3. Shown as both Investing and Financing Cash Flow simultaneously
4. Completely excluded from the Cash Flow Statement and disclosed in Notes to Accounts

If Trade Payables (Creditors) increased by ₹20,000 and Inventories (Stock) increased by ₹15,000 during the year, what is the net adjustment to Operating Profit before Working Capital Changes?

1. Net deduction of ₹5,000
2. Net addition of ₹5,000
3. Net addition of ₹35,000
4. Net deduction of ₹35,000

Net Profit before Tax and Extraordinary Items is ₹2,00,000. Depreciation provided during the year was ₹30,000, Gain on Sale of Furniture was ₹10,000, and Interest Expense paid on Bank Loan was ₹15,000. What is the Operating Profit before Working Capital Changes?

1. ₹2,35,000
2. ₹2,25,000
3. ₹2,55,000
4. ₹2,05,000

How is "Dividend Received" classified in the Cash Flow Statement of a Financial Enterprise versus a Non-Financial Enterprise?

1. Operating Activity for both
2. Investing Activity for Financial; Operating Activity for Non-Financial
3. Operating Activity for Financial; Investing Activity for Non-Financial
4. Financing Activity for both

According to Accounting Standard 3 (AS-3 Revised), which of the following activities is classified under "Cash Flow from Operating Activities"?

1. Sale of fixed assets by a manufacturing company
2. Cash received from trade receivables (debtors) by a trading enterprise
3. Issue of shares for cash
4. Purchase of debentures of another company