JAIIB · AFM · Chapter 16

Cash Flow and Fund Flow Statement

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Accounting and Financial Management for Bankers — JAIIB.

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One-liners from this chapter

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Q

Cash Inflows — Meaning / Banking Example?

A

Meaning: Transactions that increase Cash & Cash Equivalents; Banking Example: Customer EMI receipts, interest received, fresh deposit mobilisation

Q

Cash Outflows — Meaning / Banking Example?

A

Meaning: Transactions that decrease Cash & Cash Equivalents; Banking Example: Salary disbursement, rent paid, interest paid on borrowings

Q

(A) CASH FLOW FROM OPERATING ACTIVITIES Net Profit Before Interest and Tax (NPBT) Add: Depreciation Add: Goodwill written off Add: Loss on sale of fixed assets Add: Preliminary expenses written off…?

A

Amount (₹): XXX XXX XXX XXX XXX (XXX) (XXX) (XXX) XXX XXX (XXX) (XXX); Amount (₹): XXX XXX XXX

Q

(B) CASH FLOW FROM INVESTING ACTIVITIES Purchase of Fixed Assets Sale of Fixed Assets Purchase of Investments Sale of Investments Interest Received Dividend Received Net Cash from Investing…?

A

Amount (₹): (XXX) XXX (XXX) XXX XXX XXX; Amount (₹): XXX

Q

(C) CASH FLOW FROM FINANCING ACTIVITIES Issue of Shares / Debentures Repayment of Long-term Borrowings Interest Paid Dividend Paid Net Cash from Financing Activities (C) — Amount (₹) / Amount (₹)?

A

Amount (₹): XXX (XXX) (XXX) (XXX); Amount (₹): XXX

Q

Net Increase / (Decrease) in Cash & Cash Equivalents (A + B + C) Add: Opening Cash & Cash Equivalents Closing Cash & Cash Equivalents — Amount (₹) / Amount (₹)?

A

Amount (₹): XXX XXX XXX

Q

LONG-TERM SOURCES: a. Increase in equity b. Decrease in Reserves (rare) c. Increase in long-term borrowings d. Decrease in Non-current assets (sale of fixed assets) Sub-total?

A

1. LONG-TERM USES: a. Decrease in equity (buy-back) b. Increase in Reserves (via retained profit) c. Decrease in long-term borrowings (repayment) d. Increase in Non-current assets (CAPEX) Sub-total

Q

SHORT-TERM SOURCES: a. Increase in Short-term borrowings b. Decrease in current assets Sub-total?

A

2. SHORT-TERM USES: a. Decrease in Short-term borrowings b. Increase in current assets Sub-total

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