Practice Summary (9) - Cash Flow

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9 questions

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2 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 a Cash Flow Statement.
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Focus on what it tracks.
Question 2.
What do we mean by liquidity?
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Think about cash availability.
3Question 3.
What is the purpose of a Cash Flow Statement?
- To show profit only
- To evaluate cash inflows and outflows
- To analyze equity only
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Look for its overall purpose.
4Question 4.
True or False: The Cash Flow Statement is prepared on the accrual basis.
- True
- False
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Consider the basis of accounting it follows.
Question 5.
Given the following cash transactions, calculate the net cash flow: Net Profit: ₹1,50,000, Depreciation: ₹25,000, Increase in Debtors: ₹15,000, Tax Paid: ₹35,000.
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Remember to adjust net profit.
Question 6.
Assess the impact of increasing debt on a company’s financing cash flow. What actions impact cash flows here?
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Think about borrowing vs paying off debts.

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