Financial Statements

Cash Flow

Easy

Financial Statements

Following are the steps while making cash flow from operating activities. Arrange them in correct sequence:

(A) Operating Profit before Working Capital Changes

(B) Net Profit before Tax and Extra Ordinary Items

(C) Cash generated from Operations

(D) Tax Paid

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

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

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

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

✅ Correct Option: 3

Under the indirect method: start with Net Profit before Tax and Extraordinary Items (B); adjust non-cash and non-operating items to get Operating Profit before Working Capital Changes (A); adjust changes in current assets and liabilities to arrive at Cash Generated from Operations (C); then deduct Tax Paid (D) to get net cash from operating activities.

2026: 11 May Shift 2

Match the LIST-I with LIST-II

LIST-I		LIST-II
A. Demand deposits with banks is	I.	Cash flow from operating activities
B. Cash receipts from royalties, fees, commissions and other revenues	II.	Cash flow from investing activities
C. Interest received in cash from loans and advances	III.	Cash flow from financing activities
D. Cash proceeds from issuing shares	IV.	Cash and cash equivalents

Choose the correct answer from the options given below:

2022: 16 July Shift 2

Which of the following is an in flow of cash in financing activity?

2022: 16 July Shift 2

Match the following with regard to Cash Flow Statement

List I	List II
A. Operating activity	I. Raising of loan
B. Investing activity	II. Current investment
C. Financing activity	III. Selling of investment
D. Cash and Cash equivalent	IV. Buying of raw material

Choose the correct answer from the options given below:

2025: 3 June Shift 1

Arrange the following in correct sequence of appearance in a cash flow statement

(A) Cash and cash equivalents at the end

(B) Cash flows from operating activities

(D) Cash flows from financing activities

Choose the correct answer from the options given below:

2022: 8 Aug Shift 2

Which one of the following statement is false?

2022: 8 Aug Shift 2

If a machinery is purchased, how will it be treated while preparing the cash flow statement as per AS-3 (Revised)?

Following are the steps while making cash flow from operating activities. Arrange them in correct sequence: (A) Operating Profit before Working Capital Changes (B) Net Profit before Tax and Extra Ordinary Items (C) Cash generated from Operations (D) Tax Paid

Solution

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CUET Accountancy Past Year Questions (Topic-Wise)

Following are the steps while making cash flow from operating activities. Arrange them in correct sequence:

(A) Operating Profit before Working Capital Changes

(B) Net Profit before Tax and Extra Ordinary Items

(C) Cash generated from Operations

(D) Tax Paid