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CA Final Ind AS 7 Statement of Cash Flows — practice questions

Explore 72 free Ind AS 7 Statement of Cash Flows questions in CA Final Financialreporting. Open each question or exercise to read its content, reference answers and available explanation.

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Ind AS 7 Statement of Cash Flows questions and exercises with answers

Showing questions 1–30 of 72.

Under Ind AS 7, the statement of cash flows is presented as:Read the answer and worked solution →Ind AS 7 classifies the cash flows of a period into which three heads?Read the answer and worked solution →Under Ind AS 7, cash comprises:Read the answer and worked solution →Cash equivalents under Ind AS 7 are:Read the answer and worked solution →Operating activities under Ind AS 7 are:Read the answer and worked solution →Investing activities are best described as:Read the answer and worked solution →Financing activities are those that change the entity's:Read the answer and worked solution →A demand overdraft integral to cash management is:Read the answer and worked solution →An investment normally is a cash equivalent if maturity at acquisition is:Read the answer and worked solution →Which investment may qualify as a cash equivalent?Read the answer and worked solution →Moving surplus cash into a 3-month treasury bill is shown in cash flows as:Read the answer and worked solution →Which is an operating cash flow of a manufacturing company?Read the answer and worked solution →Salaries paid to employees are classified as:Read the answer and worked solution →Unless specifically linked to other activities, income tax paid is shown under:Read the answer and worked solution →Tax payable that is identifiable with the sale of a long-term asset is classified as:Read the answer and worked solution →Cash received on selling plant at a profit is reported under:Read the answer and worked solution →A firm builds machines to rent out and later sells them. The build cost is:Read the answer and worked solution →A broker buys and sells securities for dealing; those cash flows are:Read the answer and worked solution →Loans advanced by a bank to its customers are usually shown under:Read the answer and worked solution →A cash expenditure is eligible as an investing outflow only when it:Read the answer and worked solution →Cash paid on self-constructed plant and capitalised development cost is:Read the answer and worked solution →Cash from selling shares held in another company as an investment is:Read the answer and worked solution →A non-financial company lends money to another firm. The outflow is:Read the answer and worked solution →A hedge contract's cash flows are classified like:Read the answer and worked solution →Cash proceeds from an issue of equity shares are:Read the answer and worked solution →Repayment of a term loan principal is shown under:Read the answer and worked solution →A lessee's payment reducing its finance lease liability is classified as:Read the answer and worked solution →Cash paid by a company to buy back its own shares is:Read the answer and worked solution →Which two methods may be used to report operating cash flows?Read the answer and worked solution →Which operating cash flow method does Ind AS 7 encourage?Read the answer and worked solution →

Worked practice questions

Under Ind AS 7, the statement of cash flows is presented as:

  1. A supplement prepared only on request
  2. A part of the directors report only
  3. An optional schedule for unlisted entities
  4. An integral part of the financial statements
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Correct answer: D. An integral part of the financial statements

The standard makes the cash flow statement a core component presented for every period in which financial statements appear.

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Ind AS 7 classifies the cash flows of a period into which three heads?

  1. Current, deferred and contingent
  2. Revenue, capital and extraordinary
  3. Trading, selling and holding
  4. Operating, investing and financing
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Correct answer: D. Operating, investing and financing

The standard requires every cash flow to fall under operating, investing or financing activities.

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Under Ind AS 7, cash comprises:

  1. Cash on hand and all fixed deposits
  2. Cash on hand and trade receivables
  3. Cash on hand and short-term bonds
  4. Cash on hand and demand deposits
Show answer and solution

Correct answer: D. Cash on hand and demand deposits

The defined term covers only physical cash and deposits repayable on demand, not term investments.

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More Financialreporting topics

Ind AS 116 LeasesInd AS 36 Impairment of Assets and Ind AS 38 Intangible AssetsInd AS 24 Related Party Disclosures and Ind AS 108 Operating SegmentsInd AS 1 Presentation of Financial StatementsInd AS 12 Income TaxesInd AS 113 Fair Value MeasurementInd AS 109 Financial InstrumentsInd AS 23 Borrowing Costs and Ind AS 40 Investment Property