Target Exam

CUET

Subject

-- Accountancy Part B

Chapter

Cash Flow Statement

Question:

Arrange following in correct order.

(A) Cash and cash equivalents

(B) Investing activity

(C) Operating Activity

(D) Financing activity

Choose the correct answer from the options given below:

Options:

(C), (B), (A), (D)

(D), (B), (C), (A)

(B), (A), (D), (C)

(C), (B), (D), (A)

Correct Answer:

(C), (B), (D), (A)

Explanation:

The correct answer is option 4- (C), (B), (D), (A).

(C) Operating Activity

(B) Investing activity

(D) Financing activity

(A) Cash and cash equivalents

 

This is the correct sequence of preparing cash flow statement-
(I) Cash flows from operating activities
(II) Cash flows from investing activities
(III) Cash flows from financing activities
Net increase (decrease) in cash and cash equivalents (I+II+III)
+ Cash and cash equivalents at the beginning
= Cash and cash equivalents at the end.