Question : 1. Identify the correct sequence of the following steps involved in calculating cash flows from operating activities of a company :

(A) Operating profit before working capital changes

(B) Cash generated from operations

(C) Income tax paid

(D) Net cash flow from operating activities

(E) Goodwill amortised

Choose the correct answer from the options given below:

Option 1:  (E), (C), (D), (A), (B)

Option 2:  (E), (A), (D), (B), (C)

Option 3:  (E), (A), (B), (C), (D)

Option 4: (A), (B), (C), (D), (E)

Question : Arrange the following steps in the correct sequence of the life of a company :

(A) Commencement of Business

(B) Incorporation

(C) Promotion

(D) Floatation

Choose the correct answer from the options given below :

Option 1: (A), (B), (C), (D)

Option 2: (A), (C), (B), (D)

Option 3: (B), (A), (D), (C)

Option 4: (C), (B), (D), (A) 

Question : Arrange the following in the correct order:

(A) Subscribed Capital

(B) Issued Capital

(C) Authorised Capital

(D) Paid-up Capital

(E) Called-up Capital

Choose the correct answer from the options given below:

Option 1: (C), (B), (A), (D), (E)

Option 2: (B), (C), (A), (D), (E)

Option 3: (C), (B), (A), (E), (D)

Option 4: (B), (C), (A), (E), (D)

Question : Arrange the following in the correct sequence in the context of debenture.

(A) Payment to debenture-holders

(B) Creation of DRR

(C) Issue of debentures

(D) Redemption becomes due

Choose the correct answer from the options given below:

Option 1: (A), (B), (C), (D)

Option 2: (A), (C), (B), (D)

Option 3:  (B), (A), (D), (C)

Option 4: (C), (B), (D), (A)

Question : Calculate the resulting cash flow and state the nature of cash flow from the following information: 

Acquired machinery for 3,50,000 by issuing cheque.

Option 1:  Investing activity and outflow 3,50,000

Option 2: Investing activity and inflow 3,50,000

Option 3:  Investing activity and no flow

Option 4: Operating activity and outflow 3,50,000