Cash Flow Statement Page 29
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30MODULE - 6A
Cash Flow Statement
Analysis of Financial Statements
TERMINAL QUESTIONS
1. What do you mean by Cash Flow Statement? State main objectives of
cash flow statement.
Notes
2. Define cash as per AS-3 (revised). How the various activities are
classified as per AS-3 revised while preparing cash flow statement.
3. Give three examples of operating activities.
4. Give two examples of investing activities.
5. Presented below is the comparative balance sheets of Anjali Ltd. as on
31st March 2007
Details
2007
2006
Amount
Amount
(Rs)
(Rs)
Cash
40000
57000
Account Receivables
77000
64000
Inventory
132000
140000
Prepaid expenses
12140
16540
Land
125000
150000
Equipment
200000
175000
Accumulated Depreciation (Equipment)
(60000)
(42000)
Building
250000
250000
Accumulated Depreciation (Building)
(75000)
(50000)
701140
760540
Account payables
33000
45000
Bond payables
235000
265000
Equity share capital (Rs 10 per share)
280000
250000
Retained earnings
153140
200540
701140
760540
90
ACCOUNTANCY
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