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Practice Questions
Test your understanding with targeted questions related to the topic.
Question 1
Easy
Define operating cash flow in your own words.
💡 Hint: Think about cash generation from core activities.
Question 2
Easy
What step comes first in the Indirect Method?
💡 Hint: It’s what you end with in your financial statement.
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 does operating cash flow indicate?
- Cash generated from investments
- Cash generated from operating activities
- Cash from financing activities
💡 Hint: Think about what reflects daily operations.
Question 2
True or False: Non-cash expenses like depreciation are subtracted when calculating operating cash flow.
- True
- False
💡 Hint: Remember what happens to cash during depreciation.
Solve 1 more question and get performance evaluation
Challenge Problems
Push your limits with challenges.
Question 1
A company has a net income of ₹3,00,000, depreciation of ₹60,000, an increase in inventory of ₹30,000, and a decrease in accounts payable of ₹20,000. Calculate the net cash flow from operating activities.
💡 Hint: Adjust carefully, starting from net income and considering each line item.
Question 2
You are given a financial statement showing net income of ₹1,50,000, dividend payments of ₹15,000, an increase in receivables of ₹10,000, and a gain on asset sales of ₹5,000. Calculate the cash flow from operations.
💡 Hint: Focus on operational activities when adjusting net income.
Challenge and get performance evaluation