Choose the correct alternative from the following:
- Depreciation on Fixed Assets: (a) causes cash inflow; (b) causes cash outflow; (c) has no effect on Cash Flow.
- Interest paid on debentures causes: (a) cash outflow from operating activities; (b) cash outflow from Financing Activities; (c) cash outflow from investing activities.
- Cash sale of goods causes: (a) cash inflow from operating activities; (b) cash inflow from financing activities; (c) cash inflow from investing activities.
- Payment of dividend on shares causes cash outflow from: (a) operating activities; (b) financing activities; (c) investing activities.
- Purchase of Fixed Assets causes cash outflow from: (a) operating activities; (b) financing activities; (c) investing activities.
- Sale of long-term investment at a loss: (a) increases cash; (b) decreases cash; (c) has no effect on cash.
- Redemption of debentures by converting them into shares: (a) increases cash; (b) decreases cash; (c) has no effect on cash.
- If the net operating profit of a business concern is Rs. 60,000 and its debtors have increased during the year by Rs. 20,000, cash from operation is equal to: (a) Rs. 60,000; (b) Rs. 80,000; (c) Rs. 40,000.
- Payment of income tax for which a provision has been made: (a) increases Cash Flow; (b) decreases Cash Flow; (c) has no effect on Cash Flow.
- Payment of wages and salaries causes cash outflow from; (a) operating activities; (b) financing activities; (c) investing activities.
- Issue of equity shares for cash causes cash inflow from: (a) operating activities; (b) Financing Activities; (c) investing activities.
- Dividend received from investment causes cash inflow from: (a) operating activities; (b) financing activities; (c) investing activities.