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Practice Questions
Test your understanding with targeted questions related to the topic.
Question 1
Easy
What do we do with depreciation in the cash flow statement?
💡 Hint: Think about how depreciation affects cash balances.
Question 2
Easy
If current assets increase, what adjustment do we make?
💡 Hint: What happens to cash when investments in assets increase?
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
How are losses from asset sales treated in a cash flow statement?
- Added
- Subtracted
- Ignored
💡 Hint: Remember how asset sales affect income but not actual cash flow.
Question 2
True or False: An increase in liabilities means cash is coming into the business.
- True
- False
💡 Hint: Think about how liabilities affect cash flow.
Solve and get performance evaluation
Challenge Problems
Push your limits with challenges.
Question 1
Prepare a cash flow statement given the following data: Net income ₹200,000; Depreciation ₹25,000; Loss on sale of equipment ₹10,000; Increase in accounts receivable ₹15,000; Decrease in accounts payable ₹5,000.
💡 Hint: Focus on how to handle each component properly for cash adjustments.
Question 2
Discuss the potential consequences of miscalculating adjustments in a cash flow statement for decision making.
💡 Hint: Think about how trust in financial reporting might be influenced by accuracy.
Challenge and get performance evaluation