{"id":47941,"date":"2024-04-15T22:34:04","date_gmt":"2024-04-15T22:34:04","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=47941"},"modified":"2024-04-15T22:34:04","modified_gmt":"2024-04-15T22:34:04","slug":"which-of-the-following-are-examples-of-cash-flow-from-operating-activities-as-per-as-7-1-cash-receipts-from-the-sale-of-goods-and-the-rendering-of-services-2-cash-receipts-from-disposal-of-intangi","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-are-examples-of-cash-flow-from-operating-activities-as-per-as-7-1-cash-receipts-from-the-sale-of-goods-and-the-rendering-of-services-2-cash-receipts-from-disposal-of-intangi\/","title":{"rendered":"Which of the following are examples of cash flow from operating activities as per AS-7? 1. Cash receipts from the sale of goods and the rendering of services. 2. Cash receipts from disposal of intangible assets. 3. Cash receipts from royalties, fees, commissions and other revenue. 4. Cash payments to suppliers for goods and services. 5. Cash proceeds from issuing shares or other similar instruments. 6. Cash payments to and on behalf of employees. Select the correct answer:"},"content":{"rendered":"<p>\r\n    <!-- Check if it's an AMP page -->\r\n            <!-- Non-AMP version -->\r\n        <div class=\"mcq-container\" data-quiz-id=\"quizState_6a97072a4c82b\">\r\n                                            <div class=\"option\" data-option-key=\"option1\" data-is-correct=\"false\">\r\n                    1, 3, 4 and 6                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option2\" data-is-correct=\"false\">\r\n                    2, 5 and 6                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option3\" data-is-correct=\"true\">\r\n                    1, 2, 3 and 4                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option4\" data-is-correct=\"false\">\r\n                    2, 3, 4 and 6                <\/div>\r\n                            \r\n            <!-- Feedback messages for non-AMP -->\r\n            <div class=\"feedback\" data-feedback=\"wrong\">Answer is Right!<\/div>\r\n            <div class=\"feedback\" data-feedback=\"right\">Answer is Wrong!<\/div>\r\n        <\/div>\r\n\r\n        <script>\r\n        document.addEventListener('DOMContentLoaded', function () {\r\n            var containers = document.querySelectorAll('.mcq-container');\r\n\r\n            containers.forEach(function(container) {\r\n                var options = container.querySelectorAll('.option');\r\n                var feedbackSelect = container.querySelector('[data-feedback=\"select\"]');\r\n                var feedbackWrong = container.querySelector('[data-feedback=\"wrong\"]');\r\n                var feedbackRight = container.querySelector('[data-feedback=\"right\"]');\r\n\r\n                options.forEach(function(option) {\r\n                    option.addEventListener('click', function() {\r\n                        var selectedOption = option.getAttribute('data-option-key');\r\n                        var isCorrect = option.getAttribute('data-is-correct') === 'true';\r\n\r\n                        \/\/ Remove previous selections\r\n                        options.forEach(function(opt) {\r\n                            opt.classList.remove('correct', 'incorrect');\r\n                        });\r\n\r\n                        \/\/ Add the correct\/incorrect class\r\n                        if (isCorrect) {\r\n                            option.classList.add('correct');\r\n                            feedbackRight.hidden = false;\r\n                            feedbackWrong.hidden = true;\r\n                        } else {\r\n                            option.classList.add('incorrect');\r\n                            feedbackRight.hidden = true;\r\n                            feedbackWrong.hidden = false;\r\n                        }\r\n\r\n                        \/\/ Hide select feedback\r\n                        feedbackSelect.hidden = true;\r\n                    });\r\n                });\r\n            });\r\n        });\r\n        <\/script>\r\n    \r\n    <!--more--><\/p>\n<p>The correct answer is: <strong>C. 1, 2, 3 and 4<\/strong><\/p>\n<p>Cash flow from operating activities is the cash generated from the company&#8217;s core business activities. It is calculated by taking the net income and adjusting it for non-cash items, such as depreciation and amortization.<\/p>\n<p>The following are examples of cash flow from operating activities:<\/p>\n<ul>\n<li>Cash receipts from the sale of goods and the rendering of services. This is the most common type of cash flow from operating activities. It represents the <div class=\"youtube-subscribe-container\">\r\n        <a href=\"https:\/\/www.youtube.com\/channel\/UCNHT8lW-JmLC68rjBfZhdkg?sub_confirmation=1\" target=\"_blank\" class=\"youtube-subscribe-button\">\r\n            <span class=\"youtube-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 576 512\">\r\n                    <path d=\"M549.7 124.1c-6.3-23.7-24.8-42.3-48.3-48.6C458.8 64 288 64 288 64S117.2 64 74.6 75.5c-23.5 6.3-42 24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 <div class=\"telegram-channel-container\">\r\n        <a href=\"https:\/\/t.me\/pscnotes2025\" target=\"_blank\" class=\"telegram-channel-button\">\r\n            <span class=\"telegram-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 496 512\">\r\n                    <path fill=\"white\" d=\"M248,8C111,8,0,119,0,256s111,248,248,248s248-111,248-248S385,8,248,8z M362,177L320,367c-3,14-10,18-20,14l-56-41l-27,26 c-3,3-5,5-10,5l4-63L323,196c5-5-1-7-8-3l-98,62l-42-13c-9-3-10-9,2-14l162-63C351,160,365,164,362,177z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Join Our Telegram Channel\r\n        <\/a>\r\n    <\/div> 81.2-142.7 81.2z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Subscribe on YouTube\r\n        <\/a>\r\n    <\/div> cash that the company receives from selling its products or services.<\/li>\n<li>Cash receipts from royalties, fees, commissions and other revenue. This includes any cash that the company receives from sources other than the sale of goods or services, such as royalties, fees, and commissions.<\/li>\n<li>Cash payments to suppliers for goods and services. This is the cash that the company pays to its suppliers for the goods and services that it uses in its operations.<\/li>\n<li>Cash payments to employees. This includes the cash that the company pays to its employees in the form of salaries, wages, and benefits.<\/li>\n<\/ul>\n<p>Cash receipts from disposal of intangible assets and cash proceeds from issuing shares or other similar instruments are not examples of cash flow from operating activities. These are considered to be cash flows from investing and financing activities, respectively.<\/p>\n<p>I hope this helps! Let me know if you have any other questions.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Join Our Telegram Channel Subscribe on YouTube<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Which of the following are examples of cash flow from operating activities as per AS-7? 1. Cash receipts from the sale of goods and the rendering of services. 2. Cash receipts from disposal of intangible assets. 3. Cash receipts from royalties, fees, commissions and other revenue. 4. Cash payments to suppliers for goods and services. 5. Cash proceeds from issuing shares or other similar instruments. 6. Cash payments to and on behalf of employees. 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