Classification of Activities for the Preparation of Cash Flow Statement

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Classification of Activities for the Preparation of Cash Flow Statement: Overview

This topic covers concepts such as, Classification of Activities for the Preparation of Cash Flow Statement etc.

Important Questions on Classification of Activities for the Preparation of Cash Flow Statement

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Which of the following is not an example of a financing activity in a cash flow statement?

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Which item would appear under operating activities in a cash flow statement?

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Which of the following is classified under financing activities in the cash flow statement?

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Which activity is considered an investing activity in the cash flow statement?

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Which of the following activities is classified under operating activities in a cash flow statement?

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Match List I with List II in context of cash flow statement

LIST I

A. Sale of fixed asset
B. Purchase of Goodwill
C. Tax Paid
D. Dividend Paid

LIST II

I. Outflow in operating activities
II. Inflow in Investing Activities
III. Outflow in Investing Activities
IV. Outflow in Financing Activities

Choose the correct answer from the options given below:

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Match List-I with List-II:

List-I (Items of cash flow) List-II (Type of activity)
(A) Purchase of tangible assets (I) Operating activity
(B) Issue of shares (II) Cash and cash equivalents
(C) Increase in current assets (III) Investing activity
(D) Marketable securities
(IV) Financing activity

Choose the correct answer from the options given below: