Check the below NCERT MCQ Questions for Class 12 Accountancy Chapter 11 Cash Flow Statement with Answers Pdf free download. MCQ Questions for Class 12 Accountancy with Answers were prepared based on the latest exam pattern. We have provided Cash Flow Statement Class 12 Accountancy MCQs Questions with Answers to help students understand the concept very well.
Cash Flow Statement Class 12 MCQs Questions with Answers
Cash Flow Analysis Is Based On The MCQ Chapter 11 Question 1.
Preparation of cash flow statement is :
(a) Mendatory
(b) Recommendatory
(c) Required under the Companies Act
(d) None of these
Answer
Answer: (a) Mendatory
Cash Flow Statement MCQ Chapter 11 Question 2.
Issue of shares in consideration of purchase of plant and machinery results into :
(a) Inflow of Cash
(b) Outflow of Cash
(c) Neither Inflow nor Outflow
(d) None of these
Answer
Answer: (c) Neither Inflow nor Outflow
Cash Flow Statement Is Prepared From MCQ Chapter 11 Question 3.
If net profit is 7 50,000 after writing off goodwill 7 10,000 then the cash flow from operating activities will be:
(a) ₹ 60,000
(b) ₹ 40,000
(c) ₹ 50,000
(d) ₹ 30,000
Answer
Answer: (a) ₹ 60,000
Cash From Operations Is Equal To MCQ Chapter 11 Question 4.
If net profit is ₹ 35,000 after writing off good will ₹ 6,000 and loss on sale of furniture ₹ 1,000, cash flow from operating activities will be :
(a) ₹ 35,000
(b) ₹ 42,000
(c) ₹ 29,000
(d) ₹ 28,000
Answer
Answer: (b) ₹ 42,000
MCQ On Cash Flow Statement Chapter 11 Question 5.
Cash sales in :
(a) Operating Activity
(b) Investing Activity
(c) Financing Activity
(d) None of these
Answer
Answer: (a) Operating Activity
MCQ On Cash Flow Statement Class 12 Chapter 11 Question 6.
Cash from operating activities will decrease due to :
(a) Increase in Current Assets
(b) Decrease in Current Liabilities
(c) Neither of the two
(d) Both (a) and (b)
Answer
Answer: (d) Both (a) and (b)
Cash Flow Is A Part Of MCQ Chapter 11 Question 7.
Which of the following is an example of Cash Flow from Operating Activities ?
(a) Purchase of Machinery
(b) Issue of Shares
(c) Purchases of Inventory for Cash
(d) Purchases of Investment
Answer
Answer: (c) Purchases of Inventory for Cash
Cash Flow Statement MCQ Questions And Answers Pdf Chapter 11 Question 8.
While calculating operating profit which will be added to net profit:
(a) Interest received
(b) Profit on sale of Asset
(c) Increase in General Reserve
(d) Refund of Tax
Answer
Answer: (c) Increase in General Reserve
Cash Flow Statement MCQs Class 12 Chapter 11 Question 9.
While calculating cash flow from operating netivities which will be deducted ?
(a) Increase in Creditors
(b) Increase in Debtors
(c) Decrease in Debtors
(d) Decrease in Prepaid Expenses
Answer
Answer: (b) Increase in Debtors
Question 10.
While calculating cash flow from operating activities, which will be added ?
(a) Increase in Stock
(b) Increase in Creditors
(c) Decrease in Bills Payable
(d) Increase in Debtors
Answer
Answer: (b) Increase in Creditors
Question 11.
An example of Cash Flow from Investing Activities :
(a) Cash Sales
(b) Issue of Shares
(c) Payment of cash for purchase of machinery
(d) Payment of Dividend
Answer
Answer: (c) Payment of cash for purchase of machinery
Question 12.
An example of Cash Flows from Financing Activity is :
(a) Sale of goods
(b) Sale of Investment
(c) Cash receipts from issue of shares
(d) Interest received
Answer
Answer: (c) Cash receipts from issue of shares
Question 13.
How will you treat payment of ‘Interest of Debentures’ while preparing a Cash Flow Statement ?
(a) Cash Flow from Operating Activities
(b) Cash Flow from Investing Activities
(c) Cash Flow from Financing Activities
(d) Cash Equivalents
Answer
Answer: (c) Cash Flow from Financing Activities
Question 14.
Where will you show purchase of goodwill in Cash Flow Statement:
(a) Cash Flow from Operating Activities
(b) Cash Flow from Investing Activities
(c) Cash Flow from Financing Activities
(d) Cash Equivalent
Answer
Answer: (b) Cash Flow from Investing Activities
Question 15.
Interest received by a finance company is classified under which kind of activity while preparing a Cash Flow Statement ?
(a) Cash Flow from Operating Activities
(b) Investing Activities
(c) Financing Activities
(d) Cash Equivalent
Answer
Answer: (a) Cash Flow from Operating Activities
Question 16.
Which of the following item is considered as cash equivalents:
(a) Bank Overdraft
(b) Bills Receivable
(c) Debtors
(d) Short-term Investment
Answer
Answer: (a) Bank Overdraft
Question 17.
Which of the following item is not considered as cash equivalents ?
(a) Bank Overdraft
(b) Commercial Papers
(c) Treasury Bills
(d) Investment
Answer
Answer: (d) Investment
Question 18.
Cash payment to employees is a Cash Flow from:
(a) Operating Activities
(b) Investing Activities
(c) Finance Activities
(d) All the above
Answer
Answer: (a) Operating Activities
Question 19.
Which of the following is not a Cash in Flow ?
(a) Sale of Fixed Asset
(b) Purchase of Fixed Asset
(c) Issue of Debentures
(d) Sale of Goods for Cash
Answer
Answer: (b) Purchase of Fixed Asset
Question 20.
In cash flow statement, the item of ‘Interest’ is shown in:
(a) Operating Activities
(b) Investing Activities
(c) Financial Activities
(d) In both (d) & (c)
Answer
Answer: (d) In both (d) & (c)
Question 21.
Which of the following is not a Cash Outflow:
(a) Increase in Creditors
(b) Increase in Debtors
(c) Increase in Stock
(d) Increase in prepaid expenses
Answer
Answer: (a) Increase in Creditors
Question 22.
Cash from operation is equal to :
(a) Net Profit + Increase in Current Assets
(b) Net Profit + Decrease in Current Liabilities
(c) Operating Profit + Adjustment of Current Assets and Current Liabilities
(d) All of the above
Answer
Answer: (b) Net Profit + Decrease in Current Liabilities
Question 23.
Income tax refund is a cash of:
(a) Source
(b) Application
(c) Both (a) & (b)
(d) None of these
Answer
Answer: (a) Source
Question 24.
Cash Flow Statement in based upon:
(a) Cash basis of accounting
(b) Accrual basis of accounting
(c) (a) and (b) both
(d) None of these
Answer
Answer: (a) Cash basis of accounting
Question 25.
Cash Flow Statement is related to:
(a) AS-3
(b) AS-6
(c) AS-9
(d) AS-12
Answer
Answer: (b) AS-6
Question 26.
Cash Flow Statement is prepared from:
(a) Balance Sheet
(b) Profit & Loss Account
(c) Additional Information
(d) All of these
Answer
Answer: (d) All of these
Question 27.
Following Is included in Cash Flow from Operating Activities:
(a) Royalties, Fees, Commission
(b) Purchase of Debentures
(c) Purchase of Machinery
(d) issue of Shares
Answer
Answer: (a) Royalties, Fees, Commission
Question 28.
Following are included in cash equivalent:
(a) Treasury Bill
(b) Trade Bill
(c) Bank Deposits of Short Maturity Period
(d) All of above
Answer
Answer: (d) All of above
Question 29.
Claims received from Insurance Companies are treated as:
(a) Cash Flow from Operating Activities
(b) Cash Flow from Investing Activities
(c) Cash Flow from Financing Activities
(d) None of these
Answer
Answer: (a) Cash Flow from Operating Activities
Question 30.
Which activity comes under ‘Operating Activities’ ?
(a) Purchase of Land
(b) Issue of Debentures
(c) Proceeds from Issuance of Equity Shares
(d) Cash Sales
Answer
Answer: (d) Cash Sales
Question 31.
Which of the following is not a cash inflow ?
(a) Decrease in Debtors
(b) Issue of Debentures
(c) Decrease in Creditors
(d) None of these
Answer
Answer: (c) Decrease in Creditors
Question 32.
Which one of following is not a non-cash item ?
(a) Cash Sales
(b) Goodwill written off
(c) Depreciation
(d) Provision of Bad Debts
Answer
Answer: (a) Cash Sales
Question 33.
Cash flow statement according to AS-3 is mandatory to:
(a) All enterprises
(b) Companies listed on a stock exchange
(c) Enterprises having turnover expending 50 Rs crore
(d) (b) & (c) both
Answer
Answer: (d) (b) & (c) both
Question 34.
Decrease in Current Asset is……….in operating profit
(a) Subtracted
(b) Added
(c) Divided
(d) Multiplied
Answer
Answer: (b) Added
Question 35.
Following are true about cash equivalent:
(a) More Liquid Short-term Investment
(b) Minimum risk
(c) Maturity of 3 months or less than 3 months
(d) All the above
Answer
Answer: (d) All the above
Question 36.
Which of the following activity comes under Financial Activities ?
(a) Receipts from issurence of Equity Shares
(b) Cash Sales
(c) Bank Overdraft
(d) Purchase of Debentures
Answer
Answer: (a) Receipts from issurence of Equity Shares
Question 37.
An analysis of cash flow is useful for..—.planning.
(a) Short-term
(b) Long-term
(c) Medium-term
(d) Very Long-period
Answer
Answer: (a) Short-term
Question 38.
Which calculating cash flow from operating activities which is added net profit ?
(a) Increase in Stock
(b) Decrease in Stock
(c) Increase in Debtors
(d) Decrease in Creditors
Answer
Answer: (b) Decrease in Stock
Question 39.
Which of the following is not the source of Cash ?
(a) Purchase of Fixed Assets
(b) Funds from Operations
(c) Issue of Debentures
(d) Sale of Fixed Assets
Answer
Answer: (a) Purchase of Fixed Assets
Question 40.
While calculating profit from operating activities, which will be added back to net profit:
(a) Goodwill Written off
(b) Depreciation
(c) Loss oh Sale of Fixed Assets
(d) All the Above
Answer
Answer: (d) All the Above
Question 41.
Profit during the year ₹ 20,000. During the year, there was increase in stock by ₹ 9,000 and decrease in debentures of ₹ 5,000. What is the amount of cash from operating activities ?
(a) ₹ 6,000
(b) ₹ 16,000
(c) ₹ 24,000
(d) ₹ 34,000
Answer
Answer: (b) ₹ 16,000
Question 42.
Given:
Net Profit during the year ₹ 1,00,000
Debtors in the beginning the year of ₹ 30,000
Debtors at the end of the year ₹ 36,000
What is the amount of cash from operating activities ?
(a) ₹ 30,000
(b) ₹ 94,000
(c) ₹ 1,06,000
(d) ₹ 1,66,000
Answer
Answer: (b) ₹ 94,000
Question 43.
Net Profit during the year ₹ 30,000
Creditors in the beginning ₹ 24,000
Creditors at the end ₹ 16,000
What is the amount of cash from operating activities :
(a) ₹ 30,000
(b) ₹ 34,000
(c) ₹ 22,000
(d) ₹ 40,000
Answer
Answer: (c) 7 22,000
Question 44.
Redemption of Debentures/Preference shares results into:
(a) Source of fund
(b) Use Or application of fund
(c) No flow of fund
(d) No flow of cash
Answer
Answer: (b) Use Or application of fund
Question 45.
Which of the following is not an example of cash outflows ?
(a) Repayment of loans
(b) Decrease in creditors
(c) Issue of debentures
(d) None of these
Answer
Answer: (c) Issue of debentures
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