CUET Accountancy - Which one of the following statement is false? | PYQs + Solutions

CUET Accountancy 2022 8 Aug Shift 2

Financial Statements

Medium

Cash flow statement is based upon cash basis of accounting.

Cash flow statement is based upon accrual basis of accounting.

Increase in the amount of creditors is a source of cash in cash flow statement.

Increase in the amount of debtors results in decrease in cash in cash flow statements.

✅ Correct Option: 2

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The analysis of the actual movement of money inflow and outflow in an organisation is called-

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Find out cash form financing Activities from the following information.

Item	Amount
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Which items are not added to the net profit for calculating cash from operating activities?

(I) Interest and dividend received

(II) Transfer to reserves

(III) Discount on issue of shares

(IV) Loss on sale of fixed assets

CUET Accountancy 2022 8 Aug Shift 2 PYQs