1] under which type of activity will u classify 'Interest paid on long term borrowings ' while preparing the CFS?

2] State with reason whether 'Discount received on making payment to suppliers' would result innt inflow, outflow or no flow of cash.

also tell me dat if i had answered about the the type of activity and not the reason, how much marks i got?

3] explain how financial statements analysis ignore qualitative elements?

4] under what heads and sub-heads will the following items appear in the balance -sheet of a company as per revised schedule vi part of the companies act, 1956:

i) stores and spares

ii) proposed dividend

iii) computer software

1. If interest on long-term borrowings is paid by Financial Enterprise, then it is classified under Operating Activity. On the other hand, if interest on long-term borrowings is paid by Non- Financial Enterprise, then it is classified under Financing Activity.

2. Discount received on making payment to suppliers would result in No Flow of Cash. This is because discount received is a non-cash transaction. It does not result in any actual cash receipt of discount amount.

In case you have written only ‘No Flow’ without stating the reason, then you will get 0.5 marks.

3. Financial statement analysis does not reveal the qualitative aspects of a transaction. The qualitative aspects like colour, size and brand position in the market, employee’s qualities and capabilities are not disclosed by the financial statements. Therefore, financial statement analysis fails to reveals the qualitative elements.

4.