MCQ On Ind AS 7 Statement of cash flow

1.       An entity shall prepare cash flow statement as:

(a)    Notes to account

(b)   Integral part of financial statements

(c)    Optional

(d)   None of the above

2.       Statement of cash flow shall report cash flows classified by:

(a)    Operating activities and investing activities

(b)   Investing activities and financing activities

(c)    Operating activities and financing activities

(d)   Operating activities, financing activities and investing activities

3.       Operating activities includes:

(i)      Principal revenue producing activities of an entity.

(ii)    Other activities that are not investing or financing activities.

(a)    (i)

(b)   (ii)

(c)    (i) and (ii)

(d)   (i) or (ii)

4.       Cash from operation will increase due to:

(a)    Increase in current assets

(b)   Decrease in current liabilities

(c)    Neither of two

(d)   Both (a) and (b) above

5.       Cash flow is based upon:

(a)    Accrual basis of accounting

(b)   Cash basis of accounting

(c)    Hybrid basis of accounting

(d)   None of the above

Answer: 

1.  B , 2. D , 3 C , 4. C 5. B