Practice Cash Flow from Operating Activities - 3.1 | 4. Cash Flow | ICSE Class 12 Accounts
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3.1 - Cash Flow from Operating Activities

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Learning

Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

What is the primary purpose of the Cash Flow Statement?

💡 Hint: Think about liquidity and cash management.

Question 2

Easy

Define Operating Activities.

💡 Hint: Try to think of examples of cash coming in and cash going out.

Practice 4 more questions and get performance evaluation

Interactive Quizzes

Engage in quick quizzes to reinforce what you've learned and check your comprehension.

Question 1

What is Cash Flow from Operating Activities primarily associated with?

  • Investing Activities
  • Financing Activities
  • Core Business Operations

💡 Hint: Think about what generates revenue.

Question 2

The Indirect Method involves starting with which financial figure?

  • Net Cash Flow
  • Net Profit
  • Total Revenues

💡 Hint: Consider what figure is reported on the income statement.

Solve 1 more question and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

Company X has a net profit of ₹500,000. Their depreciation expense is ₹50,000, accounts receivable increased by ₹20,000, accounts payable decreased by ₹30,000, and they've paid ₹70,000 in taxes. Calculate the net cash flow from operating activities.

💡 Hint: Be careful to add and subtract the items in the right order.

Question 2

A manufacturing firm calculates a net cash flow from operations of ₹200,000. They notice that during the year, inventory has drastically increased. Discuss how this will impact the cash position of the firm.

💡 Hint: Think about cash tied up in stock versus cash flow.

Challenge and get performance evaluation