MCQ on Cash Flow Statement: Check the below Corporate and Management Accounting MCQ on Cash Flow Statement with Answers Pdf free download. Corporate and Management Accounting MCQ on Cash Flow Statement Questions for Corporate and Management Accounting with Answers were prepared based on the latest exam pattern. We have provided Corporate and Management Accounting MCQ on Cash Flow Statement with Answers to help students understand the concept very well. Students should practice CS Executive MCQ on Cash Flow Statement Questions with Answers based on the latest syllabus.

MCQ on Cash Flow Statement

1. Cash payments to and on behalf of employees is an example of cash flow from –
(A) Operating activity
(B) Investing activity
(C) Financing activity
(D) None of the above

2. Which statement contains opening as well as closing balances of cash and cash equivalents and prepared on an accrual basis ?
(A) Cash flow statement
(B) Fund flow statement
(C) Both (A) and (B) above
(D) Statement of income & expenditure

3. The purchase of machinery by issuing long-term notes payable should be reported as a
(A) Non-cash investing and financing activity
(B) Cash outflow in the operating activity
(C) Cash outflow in the investing activity
(D) Cash outflow in the financing activity

4. In the cash flow statement, interest received by the company is classified as ______.
(A) Operating activities
(B) Cash and cash equivalents
(C) Investing activities
(D) Financing activities

5. Income from investments is a cash flow from
(A) Operating activities
(B) Investing activities
(C) Financing activities
(D) None of the above

6. In the cash flow statement, the dividend paid in the case of a financing company is classified as
(A) Operating activities
(B) Investing activities
(C) Financing activities
(D) Cash and cash equivalents

7. In the case of a financial enterprise, interest received on debentures held as an investment is:
(A) Financing activity
(B) Investing activity
(C) Operating activity
(D) Cash and cash equivalents

8. A cash flow statement is based upon while fund flow statement recognizes
(A) Cash basis of accounting; accrual basis of accounting
(B) Accrual basis of accounting; the conventional basis of accounting
(C) Mercantile basis of accounting; cash basis of accounting
(D) Cash basis of accounting; cash basis of accounting

9. In cash flow, income tax paid is treated as:
(A) Operating activity
(B) Investing activity
(C) Financing activity
(D) Not shown anywhere

10. As per Accounting Standard-3, cash equivalents include –
(A) Treasury bills
(B) Commercial papers
(C) Money market funds
(D) All of the above

11. By ‘Cash Equivalents’ we mean:
(A) Bank Balance
(B) Short-term highly Liquid Securities
(C) Investments
(D) Investments in debenture

12. In the cash flow statement, proceeds from sales of an asset will be considered as:
(A) Investing activity
(B) Financing activity
(C) Operating activity
(D) None of the above

13. In the case of financial enterprises, cash flows arising from ____ are classified as cash flows from operating activities.
(A) Interest Paid
(B) Interest Received
(C) Dividend Received
(D) All of the above

14. The following item would be classified as operating activities in the statement of cash flows:
(A) Acquisition of equipment, payment of dividends
(B) Proceeds from borrowing, payment of interest
(C) Payment of salaries, cash received from the sale of goods
(D) Payments on loan, payments for taxes

15. Which of the following involves a movement of cash?
(A) A bonus issue
(B) A right issue
(C) Depreciation of fixed assets
(D) Provision for taxes

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