891. For the calculation of cash flow from operating activities, payments and receipts shown in Profit & Loss account are converted into payments and receipts actually in cash.
A. True
B. False

892. For the calculation of cash flow from operating activities, payments and receipts shown in Profit & Loss account are converted into payments and receipts actually in cash by eliminating
A. Non-cash revenue from the revenue earned
B. Non-cash expenses from expenses incurred
C. Both a & b
D. None of the above

893. While preparing Cash Flow Statement, non-cash items and non-operating items are not required to be adjusted under________
A. Indirect method
B. Direct method
C. Both a & b
D. None of the above

894. Cash flow from sales is calculated by
A. Cash sales + Cash Collections
B Sales + Opening debtors+ Opening B/R –Closing Debtors – Closing B/R
C. Both a and b
D. None of the above

895. Cash outflow on purchases is calculated by
A. Purchases + Opening Creditors + Opening B/P –Closing Creditors-Closing B/P
B. Purchases + Opening Creditors – Closing Creditors +Closing B/P
C. Purchases – Opening Creditors – Opening B/P + Closing Creditors +Closing B/P
D. None of the above

896. The amount of operating expenses which are actually been paid in cash are shown under:
A. Cash flow from sales
B. Cash outflow on purchases
C. Cash outflow on expenses
D. All of above are false

897. Given salary expenses Rs 40,000, Outstanding in the beginning of the year: Rs 5,000 and outstanding at the end of the year Rs 10,000. Cash outflow on salary will be:
A. Rs 45,000
B. Rs 35000
C. Rs 55,000
D. Rs 15,000

898. In indirect method, net cash flow from operating activities is calculated on the basis of
A. Net Profit after tax
B. Net profit before tax
C. Both and b
D. None of the above

899. Acquisition and disposal of long term assets is included in
A. Cash flow from investing activities
B. Cash flow from financing activities
C. Cash flow from operating activities
D. None of the above

900. Which of the following statements represent example of cash flow from investing activities?
A. Cash advances and loans made by financial enterprises
B. Cash advances and loans made to third parties
C. Both a and b
D. None of the above

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