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Questions and Answers
What are the three main activities that cash flows are classified under in a cash flow statement?
What are the three main activities that cash flows are classified under in a cash flow statement?
- Revenue Activities, Expenditure Activities, Financing Activities
- Income Activities, Expense Activities, Investment Activities
- Cash Inflow, Cash Outflow, Cash Movement
- Operating Activities, Investment Activities, Financial Activities (correct)
What is the main purpose of preparing a cash flow statement?
What is the main purpose of preparing a cash flow statement?
- To identify total assets and liabilities
- To show the movement of cash inflow and outflow (correct)
- To calculate inventory turnover
- To track profit and loss
Which statement accurately reflects the relationship between Cash Flow from Operating Activities (CFO), Cash Flow from Investing Activities (CFI), Cash Flow from Financing Activities (CFF), and Cash & Cash Equivalents during the year?
Which statement accurately reflects the relationship between Cash Flow from Operating Activities (CFO), Cash Flow from Investing Activities (CFI), Cash Flow from Financing Activities (CFF), and Cash & Cash Equivalents during the year?
- $CFO / CFI / CFF = Cash & Cash Equivalents during the year$
- $CFO + CFI + CFF = Cash & Cash Equivalents during the year$ (correct)
- $CFO imes CFI imes CFF = Cash & Cash Equivalents during the year$
- $CFO - CFI - CFF = Cash & Cash Equivalents during the year$
Which method of preparing a cash flow statement is not typically covered in the syllabus?
Which method of preparing a cash flow statement is not typically covered in the syllabus?
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What are the two main topics covered when preparing a cash flow statement according to AS-3?
What are the two main topics covered when preparing a cash flow statement according to AS-3?
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