MCQ Questions on Cash Flow Statement

MCQ Questions on Cash Flow Statement: Below, You will find a list of Commerce MCQ Questions as per the latest prescribed syllabus. Ace up your preparation with the Objective Questions available on Cash Flow Statement and enhance your subject knowledge. Understand the concept clearly by consistently practicing the Multiple Choice Questions and score well in your exams.

MCQ Questions on Cash Flow Statement

1. Statement of cash flows includes
(a) Financing Activities
(b) Operating Activities
(c) Investing Activities
(d) All of the Above

Answer

Answer: (d)


2. 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

Answer

Answer: (c)


3. A firm that issues stocks and bonds to raise funds results in
(a) Decreases Cash
(b) Increases Cash
(c) Increases Equity
(d) Increases Liabilities

Answer

Answer: (b)


4. The purchase value of assets over its serviceable life is categorised as
(a) Appreciated Liabilities
(b) Appreciated Assets
(c) Depreciation
(d) Appreciation

Answer

Answer: (c)


5. 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

Answer

Answer: (d)


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

Answer

Answer: (d)


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

Answer

Answer: (a)


8. 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

Answer

Answer: (d)


9. 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

Answer

Answer: (c)


10. 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

Answer

Answer: (d)


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