Tag: meaning, merits and demerits of cash flow statement

Questions Related to meaning, merits and demerits of cash flow statement

Sum of discounted cash flows is best defined as _____________.

book keeping and accountancy statement of changes in financial position meaning, merits and demerits of cash flow statement meaning and objectives of cash flow statement budgeting

  1. technical equity

  2. defined future value

  3. project net present value

  4. equity net present value

Show answer
Correct Option: C

Cash Flow Statement explains the reason on surplus or deficit of cash.

book keeping and accountancy statement of changes in financial position meaning, merits and demerits of cash flow statement meaning and objectives of cash flow statement budgeting

  1. True

  2. False

Show answer
Correct Option: A

Cash Management and Insurance are chief function of the ____________.

book keeping and accountancy statement of changes in financial position meaning, merits and demerits of cash flow statement meaning and objectives of cash flow statement budgeting

  1. Tax Manager

  2. Controller

  3. Treasurer

  4. Accountant

  5. Finance Manager

Show answer
Correct Option: C
Explanation:

The treasurer of an organization deals with the liquid assets of the firm and his responsibilities include cash management and insurance of assets.

Cash Flow is a movement of Cash and Cash Equivalent.

book keeping and accountancy statement of changes in financial position meaning, merits and demerits of cash flow statement meaning and objectives of cash flow statement budgeting

  1. True

  2. False

Show answer
Correct Option: A

Cash and Cash Equivalent includes _____________________.

book keeping and accountancy statement of changes in financial position meaning, merits and demerits of cash flow statement meaning and objectives of cash flow statement budgeting

  1. Cash on hand and bank balance.

  2. Marketable Securities.

  3. Short-term investments.

  4. All of the above.

Show answer
Correct Option: D

The financial ratio (the best single predictor) that is used in the Beavers Model to predict the failure of a company is the _____________.

book keeping and accountancy statement of changes in financial position meaning, merits and demerits of cash flow statement meaning and objectives of cash flow statement budgeting

  1. Debt-equity ratio

  2. Cash flow to total debt ratio

  3. Price earnings ratio

  4. Return on investment

  5. None of the above

Show answer
Correct Option: B

Cash outflows are costs of project and are represented by ____________.

book keeping and accountancy statement of changes in financial position meaning, merits and demerits of cash flow statement meaning and objectives of cash flow statement budgeting

  1. negative numbers

  2. positive numbers

  3. hurdle number

  4. relative number

Show answer
Correct Option: A

Which of the following is not a cash inflow?

book keeping and accountancy statement of changes in financial position meaning, merits and demerits of cash flow statement meaning and objectives of cash flow statement budgeting

  1. Purchase of fixed asset

  2. Sale of fixed asset

  3. Issue of debentures

  4. Cash from business operations

Show answer
Correct Option: A

Which Accounting Standard is applicable for preparation of Cash Flow Statement?

commercial studies budgeting meaning, merits and demerits of cash flow statement meaning and objectives of cash flow statement statement of changes in financial position

  1. Accounting Standard - 6

  2. Accounting Standard - 3

  3. Accounting Standard - 2

  4. Accounting Standard - 13

Show answer
Correct Option: B

Net investment in operating capital is Rs 5000 and net operating profit after taxes is Rs 8000 then free cash flow would be __________.

commercial studies budgeting meaning, merits and demerits of cash flow statement meaning and objectives of cash flow statement statement of changes in financial position

  1. Rs 13, 000.00

    • Rs 3, 000.00

  3. Rs 3, 000.00

    • Rs 13, 000.00
Show answer
Correct Option: C