Financial Statements

Cash Flow

Easy

If the net operating profit of the business is Rs. 90,000 and the debtors have decreased during the year by Rs. 40,000. Cash from operations is:

Rs. 90,000

Rs. 50,000

Rs. 1,30,000

Rs. 40,000

✅ Correct Option: 3

A decrease in debtors means more cash has been collected, so it is added to net operating profit.

Cash from operations = Net operating profit + Decrease in debtors = $90{,}000 + 40{,}000 = 1{,}30{,}000$ .

2022: 8 Aug Shift 2

Which one of the following statement is false?

2024

Dividend received is

2024

Match List-I with List-II

2025: 13 May Shift 2

Match List-I with List-II

List-I	List-II
(A) Operating Activities	(I) Current Investment
(B) Investing Activities	(II) Dividends paid on equity and preference capital
(C) Financing Activities	(III) Cash receipt from disposal of fixed assets including intangibles
(D) Cash equivalents	(IV) Cash receipts from royalties, fees, commissions and other revenues

Choose the correct answer from the options given below:

2023: 28 May Shift 1

Pick the odd one out while Calculating Cash Flow from Financing Activities :

2025: 13 May Shift 2

Which of the following does not result in outflow of cash?

(A) Depreciation

(B) Loss on sale of fixed assets

(D) Goodwill written off

Choose the correct answer from the options given below:

Solution