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B Com Exam  >  B Com Tests  >  Financial Analysis and Reporting  >  Test: Structure of Financial Statements- 2 - B Com MCQ

Test: Structure of Financial Statements- 2 - B Com MCQ


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10 Questions MCQ Test Financial Analysis and Reporting - Test: Structure of Financial Statements- 2

Test: Structure of Financial Statements- 2 for B Com 2024 is part of Financial Analysis and Reporting preparation. The Test: Structure of Financial Statements- 2 questions and answers have been prepared according to the B Com exam syllabus.The Test: Structure of Financial Statements- 2 MCQs are made for B Com 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Test: Structure of Financial Statements- 2 below.
Solutions of Test: Structure of Financial Statements- 2 questions in English are available as part of our Financial Analysis and Reporting for B Com & Test: Structure of Financial Statements- 2 solutions in Hindi for Financial Analysis and Reporting course. Download more important topics, notes, lectures and mock test series for B Com Exam by signing up for free. Attempt Test: Structure of Financial Statements- 2 | 10 questions in 10 minutes | Mock test for B Com preparation | Free important questions MCQ to study Financial Analysis and Reporting for B Com Exam | Download free PDF with solutions
Test: Structure of Financial Statements- 2 - Question 1
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What is the purpose of an income statement?

Detailed Solution for Test: Structure of Financial Statements- 2 - Question 1
An income statement presents a company's financial performance over a specific time period by quantifying revenue, expenses, and resulting net profit or loss.
Test: Structure of Financial Statements- 2 - Question 2
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Which financial statement captures the company's actual cash generation and expenditure?

Detailed Solution for Test: Structure of Financial Statements- 2 - Question 2
The Cash Flow Statement reveals the actual cash generated and spent by the company across its operating, investing, and financing activities.
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Test: Structure of Financial Statements- 2 - Question 3
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Which activity involves sales, marketing, and manufacturing in a company?

Detailed Solution for Test: Structure of Financial Statements- 2 - Question 3
Operational activities are directly related to a company's daily core business operations, including sales, marketing, and manufacturing.
Test: Structure of Financial Statements- 2 - Question 4
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Which section of the Cash Flow Statement is a sign of financial well-being?
Detailed Solution for Test: Structure of Financial Statements- 2 - Question 4
A positive net cash flow from operating activities is a sign of financial well-being, as it indicates that the company is generating cash from its core business operations.
Test: Structure of Financial Statements- 2 - Question 5
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If a company's liabilities decrease, what would likely happen to its cash balance?
Detailed Solution for Test: Structure of Financial Statements- 2 - Question 5
A decrease in liabilities generally leads to a decrease in the company's cash balance.
Test: Structure of Financial Statements- 2 - Question 6
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What type of activity involves raising funds by issuing new shares to investors?
Detailed Solution for Test: Structure of Financial Statements- 2 - Question 6
Issuing new shares to investors is a financing activity, as it involves raising funds for the company.
Test: Structure of Financial Statements- 2 - Question 7
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Which financial statement explicitly shows how much cash a company has generated from its different activities?
Detailed Solution for Test: Structure of Financial Statements- 2 - Question 7
The Cash Flow Statement provides a detailed breakdown of how much cash a company has generated or spent across its different activities.
Test: Structure of Financial Statements- 2 - Question 8
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If a company invests in new equipment, how does it impact its cash balance?
Detailed Solution for Test: Structure of Financial Statements- 2 - Question 8
Investing in new equipment typically leads to a decrease in the company's cash balance.
Test: Structure of Financial Statements- 2 - Question 9
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What does the Cash Flow Statement reveal about a company's activities?
Detailed Solution for Test: Structure of Financial Statements- 2 - Question 9
The Cash Flow Statement displays all three types of activities: operating, investing, and financing activities.
Test: Structure of Financial Statements- 2 - Question 10
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If a company has a negative net cash flow from all activities, what does it imply?
Detailed Solution for Test: Structure of Financial Statements- 2 - Question 10
A negative net cash flow from all activities suggests that the company consumed more cash than it generated, indicating potential financial instability.
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