Financial Statements

Cash Flow

Easy

Financial Statements

Which of the followig is cash outflows from financing activities?

Cash repayments of amounts borrowed for long-term.

Cash payments to suppliers for goods and services.

Cash payments to acquire shares, warrants or debt instruments of other enterprises other than the instruments those held for trading purposes.

Cash advances and loans made to third party (other than advances and loans made by a financial enterprise wherein it is operating activities).

✅ Correct Option: 1

Financing activities change the size and composition of owners' capital and borrowings, so repayment of long-term borrowings is a financing outflow. Payments to suppliers are operating, while purchase of shares or debt instruments of other enterprises and loans advanced to third parties are investing outflows.

2022: 15 July Shift 2

Match List I with List II

List I	List II
A. Operating Activities	I. Issue of shares
B. Investing Activities	II. Bank Balance
C. Financing Activities	III. Sale and purchase of goods and services
D. Cash and cash equivalent	IV. Buying of fixed assets

Choose the correct answer from the options given below:

2022: 20 July Shift 1

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

2022: 30 Aug Shift 2

Sale of copy rights are considered as a part of

2026: 12 May Shift 1

While making cash flows from operating activities, which one of the following will be deducted from Cash generated from operations?

2025: 27 May Shift 2

ABC Ltd. has given you the following information:

	Rs.
Machinery as on April 01, 2024	50,000
Machinery as on March 31, 2025	60,000
Accumulated Depreciation on April 01, 2024	25,000
Accumulated Depreciation on March 31, 2025	15,000

During the year, a Machine costing Rs. 25,000 with Accumulated Depreciation of Rs. 15,000 was sold for Rs. 13,000.

Calculate cash flow from Investing Activities on the basis of the above information.

2022: 15 July Shift 2

Identify the Cash Outflow from Financing Activity

Which of the followig is cash outflows from financing activities?

Solution

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