Which of the following is considered an investing activity in a cash flow statement? MCQ with Answer and Explanation

Question

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Which of the following is considered an investing activity in a cash flow statement?

A. Payment of dividend

B. Issue of shares

C. Cash received from customers

D. Purchase of machinery

Answer: Option D

Solution (By JKSSB Mock Tests)

Investing activities involve the acquisition and disposal of long-term assets and other investments not included in cash equivalents.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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Question #1

The 'E-Way Bill' under GST is required for movement of goods of value exceeding:

A. ₹1,00,000

B. ₹10,000

C. ₹50,000

D. ₹5,000

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Correct Answer: Option C

Explanation:
E-way bill is mandatory for inter-state and intra-state movement of goods if consignment value exceeds ₹50,000.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #2

The main purpose of preparing a 'Ledger' is:

A. To detect errors

B. To record transactions chronologically

C. To classify and summarise transactions account-wise

D. To ascertain profit or loss

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Correct Answer: Option C

Explanation:
Ledger is the principal book where all transactions are classified into various accounts.

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Question #3

A: Vouching is the examination of documentary evidence. R: Vouching is the same as verification. Choose the correct option.

A. Both A and R are true but R is NOT the correct explanation of A

B. Both A and R are true and R is the correct explanation of A

C. A is true but R is false

D. A is false but R is true

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Correct Answer: Option C

Explanation:
Vouching is indeed the examination of vouchers to verify transactions. However, verification is a broader term that includes proving the existence, ownership, and valuation of assets and liabilities at the balance sheet date. They are not the same. A is true, R is false.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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