What is meant by cash flow statement?

3

(a)

State why non-cash transactions are ignored while preparing a cash flow statement.

3

(a)

State why cash flow statement is not a substitute for income statement.

3

(a)

State whether the payment of cash to creditors will result in inflow, outflow or no flow of cash.

3

(a)

Declaration of final dividend would result into inflow, outflow or no flow of cash.Give your answer with reason.

3

(a)

Which values are reflected by a business in preparing a cash flow statement?

3

(a)

Under which type of activity will you classify 'commission and royalty received' while preparing cash flow statement?

3

(a)

Give an example of a transaction, a part of which is classified or shown as investing activity and another part is classified as financing activity.

3

(a)

Under which type of activity will you classify 'issuing 9% debentures' while preparing cash flow statement.

3

(a)

From the following information, calculate cash flow from investing activities and financing activities.

Particulars	Opening (Rs.)	Closing(Rs.)
Furniture (At cost)	40,000	56,000
Accumulated Depreciation on Furniture	12,000	18,000
Capital	2,00,000	2,80,000
Loan from Bank	50,000	30,000

During the year, furnitures costing Rs.8,000 was sold at a profit of Rs.6,000.Depreciation on furniture charged during the year amounted to Rs.10,000.

3

(a)

What are the various activities classified as per AS-3(revised) related to cash flow statement?

3

(a)

State one objective of cash flow statement.

3

(a)

What do you mean by cash equivalent?

3

(a)

Stete the category of the folowing items for a financial as well as nonfinancial company?
(1) Dividend recevied
(2) Dividened paid
(3) Interest paid
(4) Interest received

3

(a)

What are the objectives of cash flow statement are:

3

(a)