Question : Which of the following statements is not true?

Option 1: Cash equivalents are short-term, highly liquid investments that are readily convertible into known amount of cash and which are subject to insignificant change in value.

Option 2: Operating Activities are the principal revenue producing activities of an enterprise and those activities which are not investing or financing activities.

Option 3: Shares issued to promoters in consideration of their services are shown as a Financing Activity.

Option 4: Gratuity paid to a retiring employee is an Operating Activity.

Question : The objectives of Cash Flow Statement are:

Option 1: To determine the sources (receipts) of Cash and Cash Equivalents under Operating, Investing and Financing Activities of the enterprise.

Option 2: To determine applications (payments) of Cash and Cash Equivalents under Operating, Investing and Financing Activities of the enterprise.

Option 3: To determine net change in Cash and Cash Equivalents.

Option 4: All of the above

Question : The objectives of Cash Flow Statement are:

Option 1: To determine the sources (receipts) of Cash and Cash Equivalents under Operating, Investing and Financing Activities of the enterprise.

Option 2: To determine applications (payments) of Cash and Cash Equivalents under Operating, Investing and Financing Activities of the enterprise.

Option 3: To determine net change in Cash and Cash Equivalents.

Option 4: All of the above

Question : Under which type of activity will you classify 'Proceeds from Sale of Goodwill while preparing a Cash Flow Statement?

Option 1: Operating activities

Option 2: Investing activities

Option 3: Financing activities

Option 4: Cash and cash equivalents

Question : Under which type of activity will you classify 'Proceeds from Sale of Patents' while preparing Cash Flow Statement?

Option 1: Operating activities

Option 2: Investing activities

Option 3: Financing activities

Option 4: Cash and cash equivalents