State the objective of preparing 'Cash Flow Statement'.
The foremost objective to prepare a Cash Flow Statement is to ascertain the gross inflows and outflows of cash and cash equivalents from various activities of a business.
Following is the Balance Sheets of Thermal Power Ltd. as at 31-3-2014:
While preparing the 'Cash Flow Statement' the accountant of Gulfam Ltd., a financing company showed 'Dividend received on Investments' as 'Investing Activity'. Was he correct in doing so? Give reason.
What is meant by 'Cash Equivalents' while preparing Cash Flow Statement?
Which of the following transactions will result into 'Flow of Cash’?
(a) Deposited Rs 10,000 into bank.
(b) Withdrew cash from bank Rs 14,500.
(c) Sale of machinery of the book value of Rs 74,000 at a loss of Rs 9,000.
(d) Converted Rs 2,00,000 9% debentures into equity shares.
