901. Financing activities brings changes in
A. Size and composition of owner’s equities
B. Borrowing of the enterprise
C. Both a and b
D. None of the above

902. Listed Enterprises need to prepare Cash Flow Statement only under indirect method.
A. True
B. False

903. In the case of financial enterprises, the cash flow resulting from interest and dividend received and interest paid should be classified as cash flow from
A. Operating activities
B. Financing activities
C. Investing activities
D. None of the above

904. In case of other enterprises cash flow arising from interest paid should be classified as cash flow from ________ while dividends and interest received should be stated as cash flow from ____.
A. Operating activities, financing activities
B. Financing activities, investing activities
C. Investing activities, operating activities
D. None of the above

905. Issue of bonus shares and conversion of debentures into equity are shown as a footnote to the Cash Flow Statement.
A. True
B. False

906. When a fixed asset is bought as hire purchase, interest element is classified under ______ and loan element is classified under________.
A. Operating activities, financing activities
B. Financing activities, investing activities
C. Investing activities, operating activities
D. None of the above

907. Which of the following is not a cash inflow?
A. Decrease in debtors
B. Issue of shares
C. Decrease in creditors
D. Sale of fixed assets

908. Which of the following is not a cash outflow?
A. Increase in Prepaid expenses
B. Increase in debtors
C. Increase in stock
D. Increase in creditors

909. Which of the following is a conventional method of ascertaining cost?
A. Absorption costing
B. Full Costing
C. Both a & b
D. None of the above

910. Under absorption costing, profit is ascertained
A. On the basis of difference between sales and total cost.
B. By computation as per desired rate of profit on sales or cost
C. Both a and b
D. None of the above.

NOTE
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PLEASE COMMENT WITH CORRECT ANSWER AND ITS DETAIL EXPLANATION IN COMMENT BOX.
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