Class 12 Accountancy MCQs Cash Flow Statement
Questions are given here that are based on examination for practice by the students to prepare for final exams to score high.
- Decrease in Bank Overdraft is shown under which heading in a Cash Flow Statement?
a) Operating
b) Financing
c) Investing
d) Cash and Cash Equivalent
2. Which of the following transactions would result in inflow of cash:
a) Cash withdrawn from Bank for office use.
b) Purchase of machinery worth ₹ 2,00,000 and issued shares in consideration thereof.
c) Sale of furniture for ₹ 3,000 to Mr. Mohan.
d) Cash received from Debtors ₹ 6,000.
3. CAE Ltd. earned profit of ₹1,00,000 after charging depreciation of ₹20,000 on assets and transfer to General Reserve of ₹30,000. Goodwill amortised was ₹7,000 and gain on sale of machinery was ₹3,000. Additional Information: Changes notes at the end of the year, Trade Receivables- increase ₹3,000, Trade Payables - increase ₹6,000, Prepaid Expenses - increase ₹200 and Outstanding Expenses - decrease ₹2,000. Cash Flow from Operating Activities will be:
a) ₹1,50,000
b) ₹1,54,800
c) ₹1,52,600
d) ₹1,60,200
4. Which of the following equations is correct:
a) Cost of Revenue from Operations = Revenue from Operations + Gross Profit
b) Cost of Revenue from Operations = Opening Inventory Net Purchases + Direct Expenses - Closing Inventory
c) Cost of Revenue from Operations = Opening Inventory + Closing Inventory
d) Cost of Revenue from Operations = Revenue from Operations - Gross Profit
5. Decrease in Bank Overdraft is shown under which heading in a Cash Flow Statement?
a) Operating
b) Financing
c) Investing
d) Cash and Cash Equivalent
6. Which of the following transaction does not result in Inflow or outflow of cash and cash Equivalents?
a) Collection of cash from trade receivables
b) Payment to trade payables
c) Cash received on maturity of marketable securities
d) Payment to employees
7. Read the following information:
31st March 2023 31st March 2024
Equipment (Cost) ₹ 20,00,000 ₹ 30,00,000
Accumulated Depreciation ₹ 4,80,000 ₹ 5,90,000
During the year equipment worth ₹ 2,00,000 was sold for ₹ 1,10,000. Depreciation charged during the year was ₹ 1,50,000. Determine the amount to be shown under non-cash and non-operating expenses while preparing cash flow statement.
a) ₹ 1,50,000
b) ₹ 2,00,000
c) ₹ 2,40,000
d) ₹ 50,000
8. Assertion - Purchase of Fixed Assets is classified as Investing Activity in case of all enterprises. Reason - Payment of Dividend on shares is classified as Financing Activity in case of all enterprises. In the context of these two statements, which of the following is correct:
a) Assertion is correct but Reason is wrong
b) Both Assertion and Reason are correct, but Reason is not the correct explanation of Assertion
c) Both Assertion and Reason are incorrect
d) Both Assertion and Reason are correct and Reason is the correct explanation of Assertion
9. Which of the following is not correct:
a) Operating Profit = Revenue from Operations - Operating Cost
b) Operating Profit = Net Profit + Non-operating Expenses-Non-Operating Income
c) Operating Profit = Gross Profit Other Operating Expenses + Other Operating Income
d) Operating Profit = Revenue from Operations-Cost of Revenue from Operations
10. For Cash Flow Statement, Bank Overdraft and cash credit are to be treated as:
a) Cash Equivalents
b) Non-Current Liabilities
c) Investing Activity
d) Short Term Borrowings
Class 12 Accountancy MCQs Cash Flow Statement
11. Which of the following transaction does not result in Inflow or outflow of cash and cash Equivalents?
a) Collection of cash from trade receivables
b) Payment to trade payables
c) Cash received on maturity of marketable securities
d) Payment to employees
12. While preparing cash flow statement, will ‘Cash withdrawn from bank’ result into inflow, outflow or no flow of cash? Give reason in support of your answer.
a) Inflow of cash
b) Outflow of cash
c) No Flow of cash
13. Interest received in cash from loans and advance is considered as _____ activity while preparing cash flow statement.
a) Operating activity
b) Investing activity
c) Financing activity
14. While preparing Cash Flow Statement, write the sequence of treatment of following items:
- Payment of Premium on Redemption of Preference Shares.
- Transfer to General Reserve
- Depreciation on Machinery.
a) 2,3,1
b) 1,2,3
c) 2,1,3
d) 3,1,2
15. Statement I - Sale of Marketable Securities will result in no flow of Cash.
Statement II - Debentures issued as collateral security will result in inflow of cash:
a) Both Statements are correct
b) Both Statements are incorrect
c) Statement I is correct and Statement II is incorrect
d) Statement I is incorrect and Statement I is correct