Financial Statements

Cash Flow

Easy

Financial Statements

Match List-I with List-II

List-I List-II
(A) Acquisition of Machinery by Issue of Equity Shares (I) Investing Activities
(B) Purchase of Machinery for cash (II) Non-cash Item
(C) Amortisation of Goodwill (III) Financing Activities
(D) Repayment of Bank Loan (IV) Operating Activities

Choose the correct answer from the options given below:

List-I	List-II
(A) Acquisition of Machinery by Issue of Equity Shares	(I) Investing Activities
(B) Purchase of Machinery for cash	(II) Non-cash Item
(C) Amortisation of Goodwill	(III) Financing Activities
(D) Repayment of Bank Loan	(IV) Operating Activities

(A) - (I), (B) - (III), (C) - (II), (D) - (IV)

(A) - (II), (B) - (I), (C) - (IV), (D) - (III)

(A) - (II), (B) - (III), (C) - (I), (D) - (IV)

(A) - (III), (B) - (I), (C) - (IV), (D) - (II)

✅ Correct Option: 2

Machinery acquired by issuing equity shares involves no cash flow, so it is a non-cash item, (A)-(II). Purchase of machinery for cash is an investing activity, (B)-(I). Amortisation of goodwill is added back while computing operating profit, so it relates to operating activities, (C)-(IV). Repayment of bank loan is a financing activity, (D)-(III).

2022: 15 July Shift 2

Dividend received by Hero Ltd. would be _______ activity

2022: 23 Aug Shift 2

Identify the correct sequence in calculation of Cash Flow from Operating Activities.

(A) Addition and subtraction of Non cash/Non operating items

(B) Payment of income tax

(D) Calculation of net profit/loss before tax and extraordinary items

Choose the correct answer from the options given below :

2022: 8 Aug Shift 2

If the net operating profit of the business is Rs. 90,000 and the debtors have decreased during the year by Rs. 40,000. Cash from operations is:

2022: 20 Aug Shift 2

Separate disclosure of cash flows from ________ activities is important because they represent the extent to which expenditure have been made for resources intended to generate future income and cash flows:

2022: 15 July Shift 2

Dividend paid by TATA Ltd. is which activity for the company?

2022: 20 July Shift 1

On 1st April 2020, the balance of furniture of ABC Ltd. was Rs. 20,000. During the year furniture costing Rs. 4,000 was sold at a gain of Rs. 3,000. Depreciation was charged on it Rs. 5,000. The balance of furniture on 31.3.21 was Rs. 28,000. The amount of furniture purchased was :

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