Practice Objectives of Preparing Cash Flow Statement - 2 | 4. Cash Flow | ICSE Class 12 Accounts
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Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

What is the primary purpose of preparing a Cash Flow Statement?

💡 Hint: Think about what financial insights a Cash Flow Statement provides.

Question 2

Easy

Name one of the key objectives of a Cash Flow Statement.

💡 Hint: Consider the financial responsibilities of a business.

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 a Cash Flow Statement primarily show?

  • Profit margins
  • Cash inflows and outflows
  • Sales volumes

💡 Hint: Think about the definition of a Cash Flow Statement.

Question 2

True or False: Cash Flow Statements are based on accrual accounting.

  • True
  • False

💡 Hint: Recall how different financial statements are prepared.

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Challenge Problems

Push your limits with challenges.

Question 1

Evaluate a company's cash generation ability if it reports cash inflows of ₹500,000 and outflows of ₹300,000. What implications does this have for its operations?

💡 Hint: Consider both the inflow and outflow to understand the cash flow dynamics.

Question 2

Discuss the potential risks a company faces if it does not prepare a Cash Flow Statement and relies solely on profit margins.

💡 Hint: Evaluate how cash flow insights influence overall business strategy.

Challenge and get performance evaluation