Financial Statements

Cash Flow

Medium

Financial Statements

In a cash flow statement, the balance sheet shows Provision for Taxation of Rs. 80,000 and Rs. 95,000 for the year 2023-24 and 2024-25 respectively. Tax paid during the year 2024-25 is Rs. 60,000. What will be the amount of tax to be added while calculating net profit before tax and extra ordinary items?

Rs. 60,000

Rs. 75,000

Rs. 95,000

Rs. 80,000

✅ Correct Option: 2

The figure added back is the provision made during the year, not the tax paid. Provision made $=$ closing provision $95,000 +$ tax paid $60,000 -$ opening provision $80,000 = 75,000$ .

2023: 28 May Shift 1

Match List - I with List - II.

List - I	List - II
(A) The Accounting basis for Cash Flow Statement is	(I) Investment in shares
(B) Dividend paid on Equity and Preference capital comes under	(II) Cash Basis
(C) It can not be considered as cash and cash equivalents	(III) Treasury bills
(D) It can be classified as cash and cash equivalents	(IV) Cash outflow from Financing Activities

Choose the correct answer from the options given below :

2023: 20 June Shift 2

Match List I with List II

LIST I	LIST II
A. Employee benefit expenses	I. Investing activity
B. Dividend received	II. Operating activity
C. Loan raised	III. Extraordinary item
D. Proceeds from earthquake disaster management	IV. Financing activity

Choose the correct answer from the options given below:

2025: 15 May Shift 1

Match List-I with List-II

List-I	List-II
(A) Cash Outflows from financing activities	(I) Redemption of debentures
(B) Cash Inflows from operating activities	(II) Current Investment
(C) Cash and cash equivalents	(III) Cash from royalties, fees, commissions and other revenues
(D) Cash Inflows from investing activities	(IV) Cash receipt from disposal of fixed assets including intangibles

Choose the correct answer from the options given below:

2025: 16 May Shift 1

Arrange following in correct order

(A) Cash and cash equivalents

(B) Investing activity

(D) Financing activity

Choose the correct answer from the options given below:

2025: 16 May Shift 1

Cash flow statement is part of financial statements as per The Companies Act 2013 and prepared in accordance with Accounting Standard_____.

2024

Arrange the following in proper sequence while preparing Cash Flow Statement:

Solution

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