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Cash Flow Statement Quiz

Class XII
Accountancy
Cash Flow Statement
13 questions
MEDIUM

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1. What is the primary purpose of a Cash Flow Statement?

To show profit and loss · To provide information about cash inflows and outflows · To record assets and liabilities · To summarize financial position

2. Which of the following is NOT a category in the Cash Flow Statement?

Operating Activities · Investing Activities · Financing Activities · Administrative Activities

3. Cash flows from operating activities include cash received from:

Sale of fixed assets · Issuing shares · Goods sold to customers · Borrowing from banks

4. Which method is used to prepare the Cash Flow Statement?

Direct method only · Indirect method only · Both direct and indirect methods · Only cash basis accounting

5. What does the indirect method start with in preparing the Cash Flow Statement?

Net income · Cash balance · Total revenue · Operating expenses