Practice Common Questions In Exams (8) - Cash Flow - ICSE 12 Accounts

Practice: Common Questions in Exams

Lesson 8Cash Flow

Practise this section

10 questions

Flashcard drill
4 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
4 questions · about 3 min · pass mark 70%. Hints available.
Sign up to start the quiz

6 sample questions

Question 1.
What is a cash flow statement?
Show hintHide hint
Think about the purpose of tracking cash movements.
Question 2.
Name one objective of preparing a cash flow statement.
Show hintHide hint
Consider how cash affects obligations.
3Question 3.
What is the primary purpose of a cash flow statement?
- To show profit
- To track cash inflow and outflow
- To list liabilities
Show hintHide hint
Focus on cash rather than profit.
4Question 4.
True or False: The Direct method is the most commonly used to prepare cash flow statements.
- True
- False
Show hintHide hint
Think about how businesses operate.
Question 5.
A company has the following data: Net profit = $100,000; Depreciation = $20,000; Increase in Debtors = $10,000; Decrease in Creditors = $5,000; Tax paid = $25,000. Calculate the Net Cash Flow from Operating Activities.
Show hintHide hint
Remember to adjust for non-cash items and changes in working capital.
Question 6.
Create a cash flow statement using the following data: Begin Cash = $10,000; Cash from Operations = $15,000; Cash used for Investing = $8,000; Cash from Financing = $2,000. What will be the ending cash balance?
Show hintHide hint
Sum up all the cash movements carefully.

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