AS 3 - Cash Flow Statement MCQ

Question 1

1. Crown Ltd. wants to prepare its cash flow statement. It sold equipment of book value of ₹ 60,000 at a gain of ₹ 8,000. The amount to be reported in its cash flow statement under operating activities is

B) ₹ 8,000

C) ₹ 68,000

D) ₹ 60,000

Answer

A) Nil ✓

Question 2

2. While preparing cash flows statement, an entity (other than a financial institution) should disclose the dividends received from its investment in shares as

A) operating cash inflow

C) financing cash inflow

D) cash & cash equivalent

Answer

B) investing cash inflow ✓

Question 3

3. XYZ Co. is a financial enterprise. In its cash flow statement, interest paid and dividends received should be

B) classified as financing cash flows.

C) Not shown in cash flow statement.

D) classified as investing cash flows.

Answer

A) classified as operating cash flows. ✓

AS 3 - Cash Flow Statement MCQ

Sample Questions: AS 3 - Cash Flow Statement