Tag: meaning, merits and demerits of cash flow statement

Questions Related to meaning, merits and demerits of cash flow statement

_______ shows the success or failure of a business. select the most Appropriate.

commercial studies budgeting meaning, merits and demerits of cash flow statement meaning and objectives of cash flow statement statement of changes in financial position

  1. Cash flow statement appropriate answer

  2. Retained earning statement

  3. Income statement

  4. Balance sheet

Show answer
Correct Option: A

If there is no inflation during a period, then the money cashflow would be equal to _____________.

commercial studies budgeting meaning, merits and demerits of cash flow statement meaning and objectives of cash flow statement statement of changes in financial position

  1. Present value

  2. Real cash flow

  3. Real cash flow + present value

  4. Real cash flow present value

Show answer
Correct Option: B
Explanation:

Inflation is defined as the increase in prices of general goods and services. If there is no inflation during a particular period, there will be no impact on cash flows. The money cash flow must be equal to real cash flow.

The Real Cashflows must be discounted to get the present value 'M' at a rate equal to ________________.

commercial studies budgeting meaning, merits and demerits of cash flow statement meaning and objectives of cash flow statement statement of changes in financial position

  1. Money Discount Rate

  2. Inflation Rate

  3. Real Discount Rate

  4. Risk free rate of interest

Show answer
Correct Option: C