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Practice Questions
Test your understanding with targeted questions related to the topic.
Question 1
Easy
Define a Cash Flow Statement.
💡 Hint: Focus on what it tracks.
Question 2
Easy
What do we mean by liquidity?
💡 Hint: Think about cash availability.
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 purpose of a Cash Flow Statement?
- To show profit only
- To evaluate cash inflows and outflows
- To analyze equity only
💡 Hint: Look for its overall purpose.
Question 2
True or False: The Cash Flow Statement is prepared on the accrual basis.
- True
- False
💡 Hint: Consider the basis of accounting it follows.
Solve 1 more question and get performance evaluation
Challenge Problems
Push your limits with challenges.
Question 1
Given the following cash transactions, calculate the net cash flow: Net Profit: ₹1,50,000, Depreciation: ₹25,000, Increase in Debtors: ₹15,000, Tax Paid: ₹35,000.
💡 Hint: Remember to adjust net profit.
Question 2
Assess the impact of increasing debt on a company’s financing cash flow. What actions impact cash flows here?
💡 Hint: Think about borrowing vs paying off debts.
Challenge and get performance evaluation