Practice Methods Of Calculating Operating Cash Flow (5) - Cash Flow - ICSE 12 Accounts

Practice: Methods of Calculating Operating Cash Flow

Lesson 5Cash Flow

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9 questions

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4 cards from this section. Quick, good the night before a test.
Exercise
6 questions · about 4 min · pass mark 70%. Hints available.
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Quiz
3 questions · about 2 min · pass mark 70%. Hints available.
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6 sample questions

Question 1.
Define operating cash flow in your own words.
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Think about cash generation from core activities.
Question 2.
What step comes first in the Indirect Method?
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It’s what you end with in your financial statement.
3Question 3.
What does operating cash flow indicate?
- Cash generated from investments
- Cash generated from operating activities
- Cash from financing activities
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Think about what reflects daily operations.
4Question 4.
True or False: Non-cash expenses like depreciation are subtracted when calculating operating cash flow.
- True
- False
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Remember what happens to cash during depreciation.
Question 5.
A company has a net income of ₹3,00,000, depreciation of ₹60,000, an increase in inventory of ₹30,000, and a decrease in accounts payable of ₹20,000. Calculate the net cash flow from operating activities.
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Adjust carefully, starting from net income and considering each line item.
Question 6.
You are given a financial statement showing net income of ₹1,50,000, dividend payments of ₹15,000, an increase in receivables of ₹10,000, and a gain on asset sales of ₹5,000. Calculate the cash flow from operations.
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Focus on operational activities when adjusting net income.

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