For all questions assume that the indirect method is used. The Loss on the Sale of Equipment in the previous question. Error: You have unsubscribed from this list. A corporation reported the following information for the past year: Cash Flow Statements. For multiple-choice and true/false questions, simply press or click on what you think is the correct answer. Take a quick Multiple Choice Questions (MCQs) test about Cash flow statement. T . 2, 00,000. T 9. Assuming these are the only facts, what amount will the corporation report as the Net Cash Provided by Operating Activities on the cash flow statement? Many thanks for your great support." For fill-in-the-blank questions press or click on the blank space provided. T 6. … 30,000. F 3. Accounting, Cash Flow Statement, India, Problems. Click here to learn more. (Actually the company's cash increased by the amount received for the asset.) The major cash flow statement questions are considered as quite helpful when it comes to getting ample info about it. (b) Provision for tax charged in 2006 was Rs. 1, 00,000, Stock Rs. Proceeds from the issuance of Preferred Stock. - Theirry F. Free Cheat Sheet for Financial Statements (PDF). Prepare Cash Flow Statement of Suryan Ltd. from the following: (a) During 2006, the business of a sole trader was purchased by issuing shares for Rs. ), Financing activities involve long-term liabilities and stockholders equity. The loss (computed as proceeds minus the book value) appeared on the income statement and reduced the company's net income. However, the company's cash did not decrease. Depreciation is added back to net income in the operating activities section because the company's net income was reduced by the depreciation expense shown on the income statement; however, the company's cash was not reduced by depreciation expense. Prepare Cash Flow Statement of Suryan Ltd. from the following: ADVERTISEMENTS: Additional Information: ADVERTISEMENTS: (a) During 2006, the business of a sole trader was purchased by issuing shares for Rs. Proceeds from the sale of equipment used in the business. If you find difficulty in answering these questions, read ‘Cash flow statement‘ chapter thoroughly from the ... Read moreCash flow statement MCQs (d) Depreciation charged on machinery was Rs. Choose your answers to the questions and click 'Next' to see the next set of questions. (c) Rs. The purchase of a new delivery truck to be used in the business. (c) The debentures were issued at a premium of 5% which is included in the retained earnings. Just click the “start quiz” button and start Cash flow statements MCQs quiz. During the same period it issued shares of Rs.2,00,000 and redeemed debentures of Rs.1,50,000. Exam Spring 2018, questions and answers Exam Autumn 2019, questions and answers FMA CH19 - Summary Financing Enterprises Chapter 1 - Lecture notes 1 Health promotion and nurse final Individual report-S2 ACG101 2019. The accounting statement of cash flows explains the change in cash during the year. Cash Flow Statement MCQs: 1. However, the final answer for each problem is found without rounding during any step in the problem. Prohibited Content 3. You need to add back the loss that reduced net income on the income statement so that the amount reflects the cash from operating activities. Declaration and payment of dividends on company's stock. (b) An interim dividend of Rs. An increase in Bonds Payable (a long-term liability). Cash Flow Statement (Page 6) [If you need more questions and answers E-books on subjects like bookkeeping, financial accounting, costing/managerial accounting and financial This offer is not available to existing subscribers. The Gain on the Sale of Equipment formerly used in the business. Terms of Service 7. 20,000, Machinery Rs. If you have difficulty answering the following questions, learn more about this topic by reading our Cash Flow Statement (Explanation). Here is a compilation of top three accounting problems on cash flow statement with its relevant solutions. 2, 00,000. Content Filtration 6. An increase in the balance of Prepaid Insurance. Gain on the Sale of Automobile formerly used in the business. 20,000 has been paid in 2004. The company does not have any cash equivalents. An increase in the balance in Accounts Payable. An increase in the current liability Income Taxes Payable. (Accordingly depreciation expense is referred to as a non-cash expense. Preparing statement of cash flow actually explains the use of money and its value as well. As a communication trainer and business coach, I had to pick up the language of accounting in no time in order to communicate more effectively with my clients.