CUET CUET Accountancy 2024 - Arrange the following in proper sequence while preparing Cash Flow Statement: | PYQs + Solutions

CUET Accountancy 2024

Accountancy

Cash Flow Statement

Easy

(A) Net cash flow from operating activities
(B) Cash flow from financing activities
(C) Cash flow from investing activities
(D) Calculate net profit before tax and extraordinary items in working note

Arrange the following in proper sequence while preparing Cash Flow Statement:

(A), (B), (C), (D)

(D), (A), (C), (B)

(B), (A), (D), (C)

(C), (B), (D), (A)

Correct Option: 2

To prepare a Cash Flow Statement, we need to follow a specific order to ensure clarity and accuracy.

First, we start with net profit before tax and extraordinary items (D). This figure is essential as it serves as the starting point for calculating cash flows.

Next, we move to net cash flow from operating activities (A). This section shows how much cash is generated or used in the core business operations.

After that, we look at cash flow from investing activities (C). This part reflects cash used for investments in assets or cash received from the sale of assets.

Finally, we conclude with cash flow from financing activities (B). This section includes cash transactions related to borrowing and equity financing.

So, the correct sequence is: (D) → (A) → (C) → (B).

Thus, the correct answer is option 2.

CUET Accountancy 2024 PYQs

Arrange the following in proper sequence while preparing Cash Flow Statement:

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