Doubts

SOLUTION As per Accounting Standard-3 (Revised) changes resulting in inflows and outflows of Cash are classified into three types of activities namely:(i) Cash Flows from Operating Activities(ii) Cash Flows from…

SOLUTION Direct method and Indirect method.

SOLUTION Any two of the following:(i) Royalties(ii) Commission Received(iii) Sale of Scrap

SOLUTION (i) Cash receipts from the sale of goods and rendering of services.(ii) Cash payments to suppliers for goods and services.

SOLUTION Operating activities are the main revenue generating activities of an enterprise.

SOLUTION Any Two (i) Treasury Bills (ii) Commercial Paper (iii) Current Investments (iv) Balance with Banks.

SOLUTION These are short-term highly liquid investments that are readily convertible into known amounts of Cash and which present insignificant risk of changes in their values.

SOLUTION For the purpose of preparing Cash Flow Statement, Cash comprises cash in hand and demand deposits with bank.

SOLUTION A Cash Flow- arises when the net result of a transaction is either increase or decrease in Cash or Cash equivalents.