The objectives of Cash Flow Statement are (i) Analysis of cash position
(ii) Short-term cash planning
(iii) Evaluation of liquidity
(iv) Comparison of operating Performance

Related MCQs

• In case of other enterprises cash flow arising from interest paid should be classified as cash flow from ________ while dividends and interest received should be stated as cash flow from ____.
• While preparing Cash Flow Statement, non-cash items and non-operating items are not required to be adjusted under________
• In the case of financial enterprises, the cash flow resulting from interest and dividend received and interest paid should be classified as cash flow from
• Cash flow statement is prepared by taking the ------------- balance of cash
• If net profit is ₹ 50,000 after writing off goodwill ₹ 10,000 then the Cash Flow from operating activities will be:
• Cash flow example from an operating activity is
• The Moore Corporation is considering the acquisition of a new machine. The machine can be purchased for $90000; it will cost $6000 to transport to Moore’s plant and $9,000 to install. It is estimated that the machine will last 10 years, and it is expected to have an estimated salvage value of $5,000. Over its 10-year life, the machine is expected to produce 2,000 units per year, each with a selling price of $500 and combined material and labour costs of $450 per unit. Federal tax regulations permit machines of this type to be depreciated using the straight-line method over 5 years with no estimated salvage value. Moore has a marginal tax rate of 40%. What is the net cash flow for the tenth year of the project that Moore Corporation should use in a capital budgeting analysis?
• In Cash budget, Non operating cash inflow include(s)
• Purchase of building by issue of debenture is a---------item and it is ignored in cash flow statement
• Cash flow statement is based on past records, so it is---------in nature