Target Exam

CUET

Subject

-- Accountancy Part B

Chapter

Cash Flow Statement

Question:

Arrange different Classification of Activities for the Preparation of Cash Flow Statement-

(A) Cash and Cash equivalents

(B) Cash flow from Financing Activities

(C) Cash flow from Investing Activities

(D) Cash flow from Operating Activities

Choose the correct answer from the options given below:

Options:

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

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

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

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

Correct Answer:

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

Explanation:

The correct answer is option 1- (D), (C), (B), (A).

(D) Cash flow from Operating Activities

(C) Cash flow from Investing Activities

(B) Cash flow from Financing Activities

(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+I+III)
+ Cash and cash equivalents at the beginning
= Cash and cash equivalents at the end.