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प्रश्न
Which of the following transactions will result in 'Flow of Cash’?
(a) Deposited Rs 10,000 into the bank.
(b) Withdrew cash from bank Rs 14,500.
(c) Sale of the machinery of the book value of Rs 74,000 at a loss of Rs 9,000.
(d) Converted Rs 2,00,000 9% debentures into equity shares.
उत्तर
Sale of the machinery of the book value of Rs 74,000 at a loss of Rs 9,000.
Sale of machinery is the only transaction that results in the flow of cash into the business. Deposit and withdrawal of Cash are cash management activities and do not involve any cash flow. Conversion of debentures into equity shares is a change in capital structure of the company.
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संबंधित प्रश्न
Give the meaning of ‘Cash Equivalents’ for the purpose of preparing Cash Flow Statement.
Does movement between items that constitute cash or cash equivalents result into cash flow? Give reason in support of your answer.
While preparing Cash Flow statement of Sharda Ltd. 'Depreciation provided on fixed assets' was added to net profit to calculate cash flow from operating activities. Was the accountant correct in doing so? Give reason.
Which of the following transactions will result in the flow of cash?
Why is ‘Cash Flow statement’ prepared? State.
State with reason whether the following transactions will increase, decrease or not change the 'Return on Investment':
(i) Purchase of machinery worth Rs 2,00,000 by issue of equity shares.
(ii) Charging depreciation of Rs 5,000 on machinery.
(iii) Redemption of debentures in cash Rs 70,000.
(iv) Converting Rs 50,000, 9% debentures into equity shares.
Answer the following question:
State any one objective of preparing Cash Flow Statement.
Give the meaning of ‘Cash Flow’.
What is the object of preparing a Cash Flow Statements?
The important objectives for preparing Cash Flow Statement are as follows.
- It helps to ascertain the gross inflows and outflows of cash and cash equivalents from various activities.
- Secondly, Cash Flow Statement helps in analysing various reasons responsible for change in the cash balances during an accounting year.
Redemption of debentures would result in inflow, outflow on no flow of cash? Give your answer with reason.
From the following Balance Sheets, Prepare a Cash Flow Statements as per AS- 3 (revised)
|
Liabilities |
2008 Amount Rs |
2009 Amount Rs |
Assets |
2008 Amount Rs |
2009 Amount Rs |
|
Share Capital |
12,000 |
15,000 |
Furniture |
5,000 |
8,000 |
|
P & L Account |
5,000 |
6,000 |
Stock |
6,000 |
4,000 |
|
Creditors |
15,000 |
11,000 |
Debtors |
10,000 |
8,000 |
|
|
|
|
Cash |
11,000 |
12,000 |
|
|
32,000 |
32,000 |
|
32,000 |
32,000 |
|
|
|
|
|
|
|
A dividend of Rs 3,000 was paid during the year 2008-09
Short Answer Question
What are the objectives of preparing cash flow statement?
Short Answer Question
Prepare a format of cash flow from operating activities under indirect method.
Which one is Cash Inflows from operating activities?
Which one is Cash Outflows from investing activities?
Classify the following activity into operating activities, investing activities, financing activities or cash activities.
"Cash receipt from debtors"
Classify the following activity into operating activities, investing activities, financing activities or cash activities
"Cash credit"
As per which accounting standard, cash flows exclude movements between items that constitute cash or cash equivalents?
Which of the following transactions will not result into flow of cash?
Cash Flow Statement is based upon ______.
