Practice Cash Flow From Operating Activities (3.1) - Cash Flow - ICSE 12 Accounts

Practice: Cash Flow from Operating Activities

Lesson 3.1Cash Flow

Practise this section

9 questions

Flashcard drill
3 cards from this section. Quick, good the night before a test.
Exercise
6 questions · about 4 min · pass mark 70%. Hints available.
Sign up to start the exercise
Quiz
3 questions · about 2 min · pass mark 70%. Hints available.
Sign up to start the quiz

6 sample questions

Question 1.
What is the primary purpose of the Cash Flow Statement?
Show hintHide hint
Think about liquidity and cash management.
Question 2.
Define Operating Activities.
Show hintHide hint
Try to think of examples of cash coming in and cash going out.
3Question 3.
What is Cash Flow from Operating Activities primarily associated with?
- Investing Activities
- Financing Activities
- Core Business Operations
Show hintHide hint
Think about what generates revenue.
4Question 4.
The Indirect Method involves starting with which financial figure?
- Net Cash Flow
- Net Profit
- Total Revenues
Show hintHide hint
Consider what figure is reported on the income statement.
Question 5.
Company X has a net profit of ₹500,000. Their depreciation expense is ₹50,000, accounts receivable increased by ₹20,000, accounts payable decreased by ₹30,000, and they've paid ₹70,000 in taxes. Calculate the net cash flow from operating activities.
Show hintHide hint
Be careful to add and subtract the items in the right order.
Question 6.
A manufacturing firm calculates a net cash flow from operations of ₹200,000. They notice that during the year, inventory has drastically increased. Discuss how this will impact the cash position of the firm.
Show hintHide hint
Think about cash tied up in stock versus cash flow.

5 more questions in this section. Enroll free to practise them all.