Cash Flow Statement - Illustration
Classify the following activities into operating activities, investing activities, financing activities, cash activities:
| Sr. No. | Activity | Type of Activity |
| 1. | Purchase of machinery | Investing activity |
| 2. | Proceeds from issue of equity shares. | Financing activity |
| 3. | Cash Sales(goods/services) | Operating activity |
| 4. | Proceeds from long-term borrowings. | Financing activity |
| 5. | Proceeds from sales of old machinery | Investing activity |
| 6. | Cash receipt from debtors. | Operating activity |
| 7. | Trading commission received | Operating activity |
| 8. | Purchase of investment. | Investing activity |
| 9. | Redemption of preference shares. | Financing activity |
| 10. | Cash purchase | Operating activity |
| 11. | Proceeds from sale of investment. | Investing activity |
| 12. | Purchase of goodwill. | Investing activity |
| 13. | Cash paid to supplier | Operating activity |
| 14. | Interim dividend paid on equity shares. | Financing activity |
| 15. | Wages and salaries paid | Operating activity |
| 16. | Proceeds from sale of patents. | Investing activity |
| 17. | Interest received on debentures held as investment. | Investing activity |
| 18. | Interest paid on long-term borrowings. | Financing activity |
| 19. | Office and administrative expenses | Operating activity |
| 20. | Manufacturing overhead paid. | Operating activity |
| 21. | Dividend received on shares held as investment. | Investing activity |
| 22. | Rent received on property held as Investment. | Investing activity |
| 23. | Selling and distribution expenses paid | Operating activity |
| 24. | Income tax paid. | Operating activity |
| 25. | Dividend paid on preferences shares | Financing activity |
| 26. | Underwriting commission paid. | Financing activity |
| 27. | Rent paid. | Operating activity |
| 28. | Brokerage paid on purchase of shares. | Investing activity |
| 29. | Bank overdraft | Financing activity |
| 30. | Cash credit. | Financing activity |
| 31. | Short-term deposit. | Cash Equivalent |
| 32. | Marketable securities. | Cash Equivalent |
| 33. | Refund of income-tax received. | Operating activity |
| 34. | Buy back of equity shares | Financing activity |
| 35. | Discount allowed to customers | Operating activity |
| 36. | Discount received from suppliers. | Operating activity |
However, every item should be considered according to the additional information if any.
Cash Flow Statement MCQs