Financial Statements

Cash Flow

Easy

Arrange different Classification of Activities for the Preparation of Cash Flow Statement-

(A) Cash and Cash equivalents

(B) Cash flow from Financing Activities

(C) Cash flow from Investing Activities

(D) Cash flow from Operating Activities

Choose the correct answer from the options given below:

(D), (C), (B), (A)

(A), (C), (B), (D)

(B), (A), (D), (C)

(C), (B), (D), (A)

✅ Correct Option: 1

As per AS-3 (Cash Flow Statements), the standard format of Cash Flow Statement follows a specific sequence:

Cash flow from Operating Activities (D) appears first as it shows cash generated from the core business operations.

This is followed by Cash flow from Investing Activities (C), which shows cash flows from purchase and sale of long-term assets.

Next comes Cash flow from Financing Activities (B), which reflects cash flows from transactions with owners and creditors.

Finally, Cash and Cash Equivalents (A) is shown at the end, representing the net effect of all three activities on the closing cash balance.

The standard format is:

Cash Flow from Operating Activities

Cash Flow from Investing Activities

Cash Flow from Financing Activities

Net Increase/Decrease in Cash and Cash Equivalents

Add: Opening Cash and Cash Equivalents

Closing Cash and Cash Equivalents

Therefore, the correct sequence is (D), (C), (B), (A).

Correct Answer: Option 1

2022: 8 Aug Shift 2

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

2026: 11 May Shift 1

As per AS-3, arrange the following items in top to down order of the cash flow statement format according to indirect method.

A. Increase in Current Assets

B. Depreciation of the fixed assets

C. Purchase of Machinery

D. Issue of equity shares by the company

Choose the correct answer from the options given below:

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:

2022: 30 Aug Shift 2

If the net profit earned during the year is Rs. 1,00,000 and the amount of Bills receivables in the beginning and the end of the year is Rs. 20,000 and Rs. 40,000 respectively, then cash flow from operating activities will be:

2022: 20 July Shift 1

Arrange the following into correct sequence while computing cash flow from operating activies.

(a) Compute Net Profit before tax after making necessary adjustments.

(b) Compute operating profit before working capital changes by making adjustment for non-cash and non-operating activities.

(d) Compute operating profit by making adjustment for working capital changes.

(e) Calculate cash generated/cash used from operating activities by deducting tax paid from operating profit.

Choose the correct answer from the options given below :

2022: 8 Aug Shift 2

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

Arrange different Classification of Activities for the Preparation of Cash Flow Statement- (A) Cash and Cash equivalents (B) Cash flow from Financing Activities (C) Cash flow from Investing Activities (D) Cash flow from Operating Activities Choose the correct answer from the options given below:

Solution

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