While preparing the 'Cash Flow Statement' the accountant of Gulfam Ltd., a financing company showed 'Dividend received on Investments' as 'Investing Activity'. Was he correct in doing so? Give reason.

Which of the following transactions will result into 'Flow of Cash’?
(a) Deposited Rs 10,000 into bank.
(b) Withdrew cash from bank Rs 14,500.
(c) Sale of machinery of the book value of Rs 74,000 at a loss of Rs 9,000.
(d) Converted Rs 2,00,000 9% debentures into equity shares.

While preparing the 'Cash Flow Statement' the accountant of Gulfam Ltd., a financing company showed 'Dividend received on Investments' as 'Investing Activity'. Was he correct in doing so? Give reason.

Following is the Balance Sheets of Thermal Power Ltd. as at 31-3-2014:

What is meant by 'Cash Equivalents' while preparing Cash Flow Statement?

State the objective of preparing 'Cash Flow Statement'.

Prepare a Cash Flow Statement on the basis of the information given in the Balance Sheets of Liva Ltd. as at 31-3-2013 and 31-3-2012:

Notes to Accounts: 
Note 1

Under which type of activity will you classify Dividend received by a financial company while preparing Cash Flow Statement? 

What is meant by Cash from Operating Activities? 

State the purpose of preparing a Cash Flow Statement.

While preparing Cash Flow Statements what type of activity is, Payments of Cash to acquire Debentures by an investment company?