All Courses
Get the App Signup / Login
Sign in Open App
Commerce Exam  >  Commerce Tests  >  Test: Cash Flow Statements- Assertion & Reason Type Questions - Commerce MCQ

Test: Cash Flow Statements- Assertion & Reason Type Questions - Commerce MCQ


Test Description

4 Questions MCQ Test - Test: Cash Flow Statements- Assertion & Reason Type Questions

Test: Cash Flow Statements- Assertion & Reason Type Questions for Commerce 2024 is part of Commerce preparation. The Test: Cash Flow Statements- Assertion & Reason Type Questions questions and answers have been prepared according to the Commerce exam syllabus.The Test: Cash Flow Statements- Assertion & Reason Type Questions MCQs are made for Commerce 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Test: Cash Flow Statements- Assertion & Reason Type Questions below.
Solutions of Test: Cash Flow Statements- Assertion & Reason Type Questions questions in English are available as part of our course for Commerce & Test: Cash Flow Statements- Assertion & Reason Type Questions solutions in Hindi for Commerce course. Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free. Attempt Test: Cash Flow Statements- Assertion & Reason Type Questions | 4 questions in 8 minutes | Mock test for Commerce preparation | Free important questions MCQ to study for Commerce Exam | Download free PDF with solutions
Test: Cash Flow Statements- Assertion & Reason Type Questions - Question 1
Save

Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:

Assertion (A): By-back of equity shares comes under financing activities.

Reason (R): Financing activities are the activities which result in change in size, composition of owner's capital and borrowing of the enterprise from other sources.

Detailed Solution for Test: Cash Flow Statements- Assertion & Reason Type Questions - Question 1
Financing activities are those which brings changes in composition and size of owner's capital and borrowings of an enterprise. For instance: Cash received from issuing shares or other similar securities. Cash received from issuing loans, debentures, bonds, notes, and other short-term or long-term borrowings.
Test: Cash Flow Statements- Assertion & Reason Type Questions - Question 2
Save

Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:

Assertion (A): Proceeds from Issue of Shares and Debentures are recorded in Financing Activity.

Reason (R): Issue of shares and debentures are the cash inflow or outflow made to finance the company.

Detailed Solution for Test: Cash Flow Statements- Assertion & Reason Type Questions - Question 2

  • The issue of Equity and preference share capital for cash only. The issue of Debentures, Bonds and long-term note for cash only.

  • A company's cash flow from financing activities refers to the cash inflows and outflows resulting from the issuance of debt, the issuance of equity, dividend payments, and the repurchase of existing stock.

1 Crore+ students have signed up on EduRev. Have you? Download the App
Test: Cash Flow Statements- Assertion & Reason Type Questions - Question 3
Save

Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:

Assertion (A): Depreciation is added to the net profit before tax.

Reason (R): Depreciation is a non-cash item which is an expense.

Detailed Solution for Test: Cash Flow Statements- Assertion & Reason Type Questions - Question 3
There was cash outflow for depreciation. Companies use investing cash flow to make initial payments for fixed assets that are later depreciated. Depreciation is a type of expense that is used to reduce the carrying value of an asset. Depreciation is entered as a debit-to-expense and a credit to asset value so actual cash flows are not exchanged.
Test: Cash Flow Statements- Assertion & Reason Type Questions - Question 4
Save

Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:

Assertion (A): Sale of fixed assets is written under the Investing Activities.

Reason (R): Sale of fixed assets leads to inflow of cash.
Detailed Solution for Test: Cash Flow Statements- Assertion & Reason Type Questions - Question 4
Investing activities are the acquisition and disposal of long-term assets and other investments not included in cash equivalents.
Information about Test: Cash Flow Statements- Assertion & Reason Type Questions Page
In this test you can find the Exam questions for Test: Cash Flow Statements- Assertion & Reason Type Questions solved & explained in the simplest way possible. Besides giving Questions and answers for Test: Cash Flow Statements- Assertion & Reason Type Questions, EduRev gives you an ample number of Online tests for practice

Top Courses for Commerce

Download as PDF

Top Courses for Commerce

Important Questions for Cash Flow Statements- Assertion & Reason Type Questions

Find all the important questions for Cash Flow Statements- Assertion & Reason Type Questions at EduRev.Get fully prepared for Cash Flow Statements- Assertion & Reason Type Questions with EduRev's comprehensive question bank and test resources. Our platform offers a diverse range of question papers covering various topics within the Cash Flow Statements- Assertion & Reason Type Questions syllabus. Whether you need to review specific subjects or assess your overall readiness, EduRev has you covered. The questions are designed to challenge you and help you gain confidence in tackling the actual exam. Maximize your chances of success by utilizing EduRev's extensive collection of Cash Flow Statements- Assertion & Reason Type Questions resources.

Cash Flow Statements- Assertion & Reason Type Questions MCQs with Answers

Prepare for the Cash Flow Statements- Assertion & Reason Type Questions within the Commerce exam with comprehensive MCQs and answers at EduRev. Our platform offers a wide range of practice papers, question papers, and mock tests to familiarize you with the exam pattern and syllabus. Access the best books, study materials, and notes curated by toppers to enhance your preparation. Stay updated with the exam date and receive expert preparation tips and paper analysis. Visit EduRev's official website today and access a wealth of videos and coaching resources to excel in your exam.

Online Tests for Cash Flow Statements- Assertion & Reason Type Questions

Practice with a wide array of question papers that follow the exam pattern and syllabus. Our platform offers a user-friendly interface, allowing you to track your progress and identify areas for improvement. Access detailed solutions and explanations for each test to enhance your understanding of concepts. With EduRev's Online Tests, you can build confidence, boost your performance, and ace Cash Flow Statements- Assertion & Reason Type Questions with ease. Join thousands of successful students who have benefited from our trusted online resources.
© EduRev
Education Revolution
Follow Us
Signup to see your scores go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup