Cash Flow Statement is prepared in accordance with:
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- Accounting Standard 3
- Accounting Standard 26
- The Companies Act, 2013
- The Companies Act, 1956
The Correct Option is A
Solution and Explanation
Top Questions on Cash Flow Statement
- The following information has been extracted from the books of Ram Lal Ltd.:
Comparative Financial Data as on 31st March, 2024 and 2023
Additional Information: Interim dividend paid during the year was \textrupee{ 1,20,000}.Particulars 31.03.2024 (₹) 31.03.2023 (₹) Surplus (P&L) 17,00,000 8,00,000 Patents -- 50,000 Sundry Debtors 5,80,000 4,20,000 Sundry Creditors 1,40,000 60,000 Cash and Cash Equivalents 2,00,000 90,000 - CBSE CLASS XII - 2025
- Accountancy
- Cash Flow Statement
\(\textit{Statement I:}\) In case of non-financial enterprises, payment of interest and dividends are classified as financing activities, whereas receipt of interest and dividends are classified as investing activities.
\(\textit{Statement II:}\) Investing and financing transactions that require the use of cash or cash equivalents, should be excluded from cash flow statement.
Choose the correct alternative from the following:- CBSE CLASS XII - 2025
- Accountancy
- Cash Flow Statement
- Which of the following transactions will not result in the inflow of cash ?
- CBSE CLASS XII - 2025
- Accountancy
- Cash Flow Statement
- Calculate 'Cash Flows from Investing Activities' from the given information:
Comparative Statement of Assets
Particulars 31.03.2024 (₹) 31.03.2023 (₹) 10% Long Term Investments 2,50,000 4,50,000 Plant and Machinery 8,00,000 6,00,000 Goodwill 1,40,000 1,00,000 Investment in shares of Pinnacle Ltd. 14,00,000 5,00,000 Patents - 1,50,000 - CBSE CLASS XII - 2025
- Accountancy
- Cash Flow Statement
- Statement I: Snow Ltd. made a net profit of ₹ 5,00,000 after taking into consideration interest on investment of ₹ 1,00,000. Operating profit before working capital changes would be ₹ 4,00,000.
Statement II: To calculate operating profit, before working capital changes, interest on investment is subtracted from net profit because it is a non-operating income.
Choose the correct option:- CBSE CLASS XII - 2025
- Accountancy
- Cash Flow Statement
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