Cash Flow Statement — Accountancy STD 12 Commerce — Question

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 _____________.

1. Operating activities
2. Financing activities
3. Investing activities
4. None of the above

The following group of ratios primarily measures risk ________________.

1. Liquidity, activity, and profitability
2. Liquidity, activity, and common stock
3. Liquidity, activity, and debt
4. Activity, debt, and profitability

When the owners debentures are cancelled any profit on cancellation is transferred to __________.

1. General reserve
2. Capital reserve
3. P/L Account
4. None of the above

While calculating cash flow from operating activities, which will be added?

1. Increase in Stock
2. Increase in Creditors
3. Decrease in Bills Payable
4. Increase in Debtors

Which of the following helps analyzing return to equity shareholders?

1. Return on Assets
2. Earnings per Share
3. Net Profit Ratio
4. Return on Investment

Choosing a price based upon its short-term effect on current profit, cash flow, or return on investment reflects which of the following pricing objectives?

1. Current profit maximization
2. Product quality leadership
3. Market share leadership
4. Survival

Shares in Sharma Ltd. was acquired by Mr. B at a cost of Rs. 50,000. During the current p.y. he got right to acquire fresh shares. On the date of receiving the right entitlement intimation fair market value of existing shares held by Mr. B was Rs. 60,000. Mr. B sold the right paper for Rs. 75,000. His capital gains liability would be:

1. Rs. 10,000
2. Rs. 15,000
3. Rs. 25,000
4. Rs. 75,000

Which of the following is an example of Cash Flow from Operating Activities?

1. Purchase of Machinery
2. Issue of Shares
3. Purchases of Inventory for Cash
4. Purchases of Investment

Sarvesh limited earns a net profit of Rs.2,00,000 after tax during a certain financial period. Provision for taxation is Rs.2,00,000 and income from investments is Rs.2,000. Capital employed during the same period is Rs.10,00,000 return on capital employed is __________.

1. 10%
2. 20%
3. 38%
4. 42%

Debenture holders are the :

1. Customers of the Company
2. Owners of the Company
3. Creditors of the Company
4. None of these