Financial Statements

Cash Flow

Easy

According to AS-3, cash proceeds from issue of share is:

operating activity

financing activity

investing activity

None of the above

✅ Correct Option: 2

As per AS-3 (Revised), financing activities are those that result in changes in the size and composition of owners' capital and borrowings. Issue of shares brings in owners' capital, so cash proceeds from issue of shares are classified as a financing activity.

2022: 8 Aug Shift 2

Which one of the following is not a 'Cash Outflow'?

2026: 19 May Shift 1

Match List-I with List-II

List-I (Transactions)	List-II (Types of Activities)
(A) Sale of Machinery	(I) Financing Activities
(B) Bonus Issue	(II) Operating Activities
(C) Dividend Paid	(III) Investing Activities
(D) Rent Paid	(IV) No Cash Flow

Choose the correct answer from the options given below:

2024

Identify the correct sequence of the following steps involved in calculating cash flows from operating activities of a company:

2022: 30 Aug Shift 2

If net profit made during the year are Rs. 50,000 and the bills receivables have decreased by Rs. 10,000 during the year then the cash flow from operating activities will be:

2025: 14 May Shift 2

Match List-I with List-II

List-I	List-II
(A) Operating activity	(I) Bank
(B) Investing activity	(II) Redemption of preference shares
(C) Financing activity	(III) Purchase of machinery
(D) Cash equivalents	(IV) Cash receipt from trade receivables.

Choose the correct answer from the options given below:

2022: 23 Aug Shift 2

Nitin Ltd. provides you the following information.

Particulars	1 April 2021	31 March 2022
Machinery	2,40,000	3,50,000
Accumulated Depreciation	50,000	45,000

During the year, a machine costing Rs. 90,000 with accumulated depreciation of Rs. 31,500 was sold for Rs. 52,000.

Calculate Cash Flow from Investing Activities on the basis of the above information.

According to AS-3, cash proceeds from issue of share is:

Solution

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