Financial Statements

Cash Flow

Easy

Cash payment to and on behalf of employees is:

financing activity

investing activity

operating activity

none of these

✅ Correct Option: 3

As per AS-3 (Revised), cash payments to and on behalf of employees (salaries, wages, and benefits) arise from the principal revenue-producing activities of the enterprise. Such payments are classified under operating activities in the cash flow statement.

2025: 29 May Shift 2

Which of following is not Cash Inflows from Investing Activities

2024

Calculate the resulting cash flow and state the nature of cash flow from the following information: Acquired machinery for ₹ 3,50,000 by issuing cheque.

2025: 24 May Shift 1

Cash advances and loans made by financial enterprises are usually classified as ___________ activity.

2022: 8 Aug Shift 2

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

2022: 8 Aug Shift 2

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:

2026: 24 May Shift 1

If the net profits made during the year are Rs. 1,00,000 and the bills receivables have decreased by Rs. 10,000 and purchase of machinery is Rs.2,00,000 during the year then the cash flow from operating activities will be equal to:

Cash payment to and on behalf of employees is:

Solution

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