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CF
Question Practice

What is the primary purpose of classifying cash flows into operating, investing, and financing activities?

Attempt the question, check the explanation, and continue with similar questions to build confidence before exams.

MCQ_SA
CBSE
Class 12
Accountancy
Accountancy Part - II
Cash Flow Statement
Question Bank

What is the primary purpose of...

Single Answer MCQ
Q-00082940

What is the primary purpose of classifying cash flows into operating, investing, and financing activities?

1

To enhance markets for investors

2

To assess liquidity only

3

To show the sources and uses of cash

4

To summarize revenue generation

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Q1.

What is the primary objective of a cash flow statement?

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Which activity would be classified under investing activities in a cash flow statement?

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Q3.

How does a cash flow statement assist users in financial analysis?

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Q4.

What is one benefit of using a cash flow statement with other financial statements?

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