choose correct alternative from the following 619093

Aug 30, 2021 | Uncategorized

Choose the correct alternative from the following:

  1. Cash and cash equivalent refers to: (i) Cash in hand; (ii) Cash at bank; (iii) Cash in hand & at bank; (iv) Cash in hand & at bank and Short-term Investments.
  2. Cash purchases of raw materials used in production causes cash outflow from: (i) operating activities; (ii) investing activities; (iii) financing activities; (iv) none of these.
  3. Interest received from Long-term Investment in Debentures of a company causes cash inflow from: (i) Operating Activities; (ii) Investing Activities; (iii) Financing Activities; (iv) none of these.
  4. Interest paid on Long-term Loan causes cash outflow from: (i) Operating Activities; (ii) Investing Activities; (iii) Financing Activities; (iv) none of these.
  5. Redemption of Preference Share causes cash outflow from: (i) Operating Activities; (ii) Investing Activities; (iii) Financing Activities; (iv) none of these.
  6. Payment of Administrative and Selling Overheads causes cash outflow from: (i) Operating Activities; (ii) Investing Activities; (iii) Financing Activities; (iv) none of these.
  7. Depreciation on Fixed Assets: (i) causes cash inflow; (ii) causes cash outflow; (iii) has no effect on cash flow.
  8. Sale of Fixed Assets causes cash inflow from: (i) Operating Activities; (ii) Investing Activities; (iii) Financing activities; (iv) none of these.
  9. Repayment of borrowing causes cash outflow from: (i) Operating Activities; (ii) Investing Activities; (iii) Financing Activities; (iv) none of these.
  10. Amortization of patent right: (i) causes cash inflow; (ii) causes cash outflow; (iii) has no effect on cash flow.
  11. If net profit of a business concern is Rs. 1,40,000 and its creditors have gone up by Rs. 15,000 during the year, cash from operation is equal to: (i) Rs. 1,55,000; (ii) Rs. 1,25,000; (iii) Rs. 1,40,000.
  12. If the net profit of a business concern is Rs. 75,000 and its debtors have gone down by Rs. 20,000 during the year, the cash from operation is equal to: (i) Rs. 95,000; (ii) Rs. 55,000; (iii) Rs. 75,000.