Get Started
Start Free Mocks
CUETMOCK

Ace Your

CUET Preparation Today

Start Free Mocks
Home Questions 88APKVDP9F
Target Exam

CUET

Subject

-- Accountancy Part B

Chapter

Cash Flow Statement

Question:

Match the following for an enterprise while making a cash flow statement:

LIST 1 LIST 2
A) Increase in current assets I) Cash outflow
B) Increase in current liabilities II) Cash inflow
C) Issue of debentures III) Added to operating profit before working capital changes
D) Purchase of own debentures IV) Deducted from operating profit before working capital changes

Choose the correct answer from the options given below.

Options:

A-I, B-II, C-III, D-IV

A-III, B-II, C-IV, D-I

A-IV, B-III, C-II, D-I

A-I, B-III, C-II, D-IV

Correct Answer:

A-IV, B-III, C-II, D-I

Explanation:

The correct answer is option 3- A-IV, B-III, C-II, D-I 

LIST 1 LIST 2
A) Increase in current assets IV) Deducted from operating profit before working capital changes
B) Increase in current liabilities III) Added to operating profit before working capital changes
C) Issue of debentures II) Cash inflow
D) Purchase of own debentures I) Cash outflow

* Increase in current assets and Increase in current liabilities- An increase in current assets and a decrease in current liabilities are to be deducted while increase in current liabilities and decrease in current assets are to be added up.

* Issue of debentures- The issue helps the company to get cash whereas purchase makes the company to give cash.

* Purchase of own debentures- Purchase makes the company to give cash.

CUET Questions