Financial Statements

Cash Flow

Easy

Financial Statements

Which of the following is not a cash outflows from operating activities?

Cash payments to suppliers for goods and services.

Cash payments of income taxes unless they can be specifically identified with financing and investing activities.

Cash payments to acquire fixed assets including intangibles and capitalised research and development.

Cash payments to and on behalf of the employees.

✅ Correct Option: 3

Operating outflows arise from the principal revenue-producing activities, such as payments to suppliers, payments to and for employees, and income tax paid where it is not attributable to investing or financing. Purchase of fixed assets, including intangibles and capitalised development, is the acquisition of a long-term asset and is therefore an investing outflow.

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: 8 Aug Shift 2

How sale of equipment Rs. 90,000 (Book value Rs. 1,00,000) should be shown in the cash flow statement?

2022: 20 July Shift 1

We add depreciation in order to find out operating profit before working capital changes :

2025: 14 May Shift 2

Which combination of the following activities are financing activities-

(A) Proceeds from issue of equity share capital.

(B) Purchase of goodwill.

(D) Interim dividend paid on equity shares.

Choose the correct answer from the options given below:

2022: 15 July Shift 2

Purchase of goodwill is considered in _______ activity while making Cash Flow Statement.

2026: 20 May Shift 1

Match List-I with List-II

List-I	List-II
(A) Receipt from royalties, fees, commission and other revenue	(I) Investing Activity
(B) Receipt from Interest and dividends	(II) Operating Activity
(C) Proceeds from issue of preference or equity shares	(III) Cash and Cash equivalent
(D) Current Investment	(IV) Financing Activity

Choose the correct answer from the options given below:

Which of the following is not a cash outflows from operating activities?

Solution

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