Advertisements
Advertisements
प्रश्न
State any two benefits of preparing 'Cash Flow Statement'.
उत्तर
Benefits of Cash Flow Statement
1. Short-term Financial Planning- This statement is very advantageous for short-term financial planning. It helps in assessing and forecasting the sources and utilisation of cash and cash equivalents during a particular period.
2. Reasons for Change in Cash Position- It is possible that sometimes a company may have surplus cash even in case of lower profits or deficiency of cash in spite of higher profits. In such a situation, Cash Flow Statement helps in analysing the reason for the such change in the balances of cash and cash equivalents.
APPEARS IN
संबंधित प्रश्न
'Interest received and paid' is considered as which type of activity by a finance company while preparing a Cash Flow Statement?
Which of the following transactions will result in 'Flow of Cash’?
(a) An issue of equity shares of Rs 1, 00,000.
(b) Purchase of machinery of Rs 1,75,000.
(c) Redemption of 9% debentures Rs 3,50,000.
(d) Cash deposited into bank Rs 15,000.
Which of the following transactions will result in the flow of cash?
(1) Cash was withdrawn from bank Rs 20,000.
(2) Issued Rs 20,000; 9% debentures for the vendors of machinery.
(3) Received Rs 19,000 from debtors.
(4) Deposited cheques of Rs 10,000 into the bank
Amongst the following, 'Payment of bonus to the employees' by an insurance company is which type of activity?
Which of the following transactions will result in the flow of cash?
When does the flow of cash take place'?
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.
Short Answer Question
“The nature/type of enterprise can change altogether the category into which a particular activity may be classified.” Do you agree? Illustrate your answer.
From the information given below you are required to calculate the cash paid for the inventory:
|
Particulars |
(Rs) |
|
Inventory in the beginning |
40,000 |
|
Credit Purchases |
1,60,000 |
|
Inventory in the end |
38,000 |
|
Trade payables in the beginning |
14,000 |
|
Trade payables in the end |
14,500 |
"______ implies movement of cash in and out of non-cash items. Receipt of cash from a non-cash item is termed as cash inflow while cash payment in respect of such items as cash outflow"
Which one is Cash Outflows from operating activities?
Name the activities that is related to purchase and sale of long-term assets or fixed assets such as machinery, furniture, land and building, etc.?
Classify the following activity into operating activities, investing activities, financing activities or cash activities.
"Cash Sales"
Classify the following activity into operating activities, investing activities, financing activities or cash activities
"Proceeds from sales of old machinery"
What is the primary objective of cash flow statement?
From the following information, calculate cash flows from financing activities:
Long-term Loans Rs. 2,09,000 Rs. 2,50,000
During the year, the company repaid a loan of Rs. 1,00,000.
Tax paid on dividend should be classified as which type of activity along with dividend paid.
______ reconciles the opening cash balance with the closing cash balance of a given period on the basis of a net decrease or increase in cash during that period.
Which of the following transactions will not result in flow of cash:
