Practice Common Questions in Exams - 8 | 4. Cash Flow | ICSE Class 12 Accounts
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8 - Common Questions in Exams

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Learning

Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

What is a cash flow statement?

💡 Hint: Think about the purpose of tracking cash movements.

Question 2

Easy

Name one objective of preparing a cash flow statement.

💡 Hint: Consider how cash affects obligations.

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 the primary purpose of a cash flow statement?

  • To show profit
  • To track cash inflow and outflow
  • To list liabilities

💡 Hint: Focus on cash rather than profit.

Question 2

True or False: The Direct method is the most commonly used to prepare cash flow statements.

  • True
  • False

💡 Hint: Think about how businesses operate.

Solve 2 more questions and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

A company has the following data: Net profit = $100,000; Depreciation = $20,000; Increase in Debtors = $10,000; Decrease in Creditors = $5,000; Tax paid = $25,000. Calculate the Net Cash Flow from Operating Activities.

💡 Hint: Remember to adjust for non-cash items and changes in working capital.

Question 2

Create a cash flow statement using the following data: Begin Cash = $10,000; Cash from Operations = $15,000; Cash used for Investing = $8,000; Cash from Financing = $2,000. What will be the ending cash balance?

💡 Hint: Sum up all the cash movements carefully.

Challenge and get performance evaluation