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select the correct alternative from the following 617956

Choose the correct alternative from the following:

  1. Depreciation on Fixed Assets: (a) causes cash inflow; (b) causes cash outflow; (c) has no effect on Cash Flow.
  2. Interest paid on debentures causes: (a) cash outflow from operating activities; (b) cash outflow from Financing Activities; (c) cash outflow from investing activities.
  3. Cash sale of goods causes: (a) cash inflow from operating activities; (b) cash inflow from financing activities; (c) cash inflow from investing activities.
  4. Payment of dividend on shares causes cash outflow from: (a) operating activities; (b) financing activities; (c) investing activities.
  5. Purchase of Fixed Assets causes cash outflow from: (a) operating activities; (b) financing activities; (c) investing activities.
  6. Sale of long-term investment at a loss: (a) increases cash; (b) decreases cash; (c) has no effect on cash.
  7. Redemption of debentures by converting them into shares: (a) increases cash; (b) decreases cash; (c) has no effect on cash.
  8. If the net operating profit of a business concern is Rs. 60,000 and its debtors have increased during the year by Rs. 20,000, cash from operation is equal to: (a) Rs. 60,000; (b) Rs. 80,000; (c) Rs. 40,000.
  9. Payment of income tax for which a provision has been made: (a) increases Cash Flow; (b) decreases Cash Flow; (c) has no effect on Cash Flow.
  10. Payment of wages and salaries causes cash outflow from; (a) operating activities; (b) financing activities; (c) investing activities.
  11. Issue of equity shares for cash causes cash inflow from: (a) operating activities; (b) Financing Activities; (c) investing activities.
  12. Dividend received from investment causes cash inflow from: (a) operating activities; (b) financing activities; (c) investing activities.

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