Cash Flow Statement MCQS Multiple Choice Questions

1.A statement which summarizes cash inflow and outflow is referred to as:

Income statement

Balance sheet

Cash flow statement

2.Cash flow statement is comprised of cash inflow and outflow from:

Operating activities

Financial activities

Investing activities

All of the above.

3.Cash flow statement is an integral part of:

Annual financial reports

Annual budgets

Annual forecast

4.Cash flow statement can be prepared using:

One method

Two method

Three method

5.Which of the following is the methods of preparing cash flow statement:

Direct method

Indirect method

All of the above

6.IFRS approves the use of which method of preparing cash flow statement:

Direct method

Indirect method

Both

7.indirect method of cash flow starts with:

Earnings after interest & taxes

Earnings before interest & taxes

Earnings after tax

8.Non cash items are:

Depreciation expense

Amortization expense

All of the above

9.The direct method of cash flow statement is prepared adding:

All cash payments and receipts

All expenses and payments

None of the above

10.Negative cash flow is always a problem of going concern?

Yes

No

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