16. What will be the effect of issue of Bonus shares on Cash Flow Statement:
a) No effect
b) Inflow in Financing Activity
c) Inflow in Operating activity
d) Inflow in Investing Activity
17. CTE Ltd. provides you that there’s 10% Bank Loan, on 31.3.2024 - Nil and on 31.3.2023 - ₹1,00,000. Additional Information: Equity Share Capital raised during the year ₹3,00,000. 10% Bank Loan was repaid on 01.04.2023. Dividend received during the year was ₹20,000. Dividend Proposed for the year 2022-23 was ₹50,000 but only ₹20,000 was approved by the Shareholders. Find out the cash flow from Financing Activities:
a) ₹ 1,50,000
b) ₹ 2,00,000
c) ₹ 1,70,000
d) ₹ 1,80,000
18. A company received insurance claim of 7,50,000 for repairing the building which was damaged due to earthquake. Expenses on repairing the building was 6,50,000. Balance ₹ 1,00,000 was shown as Other Income in the Statement of Profit & Loss. It will be shown in the Cash Flow Statement as follows:
a) Added to Net Profit before Tax and Extraordinary item under Cash Flow from Operating Activities and Outflow under Investing Activities.
b) Deducted from Net Profit before Tax and Extraordinary item under Cash Flow from Operating Activities and Inflow under Investing Activities.
c) Deducted from Net Profit before Tax and Extraordinary item under Cash Flow from Operating Activities and Inflow under Investing Activities as Extraordinary Item.
d) no adjustment will be made.
19. From the following information calculate cash from sale of machinery:
31st March 2024 31st March 2023
Machinery ₹ 5,00,000 ₹ 3,00,000
Additional information:
Depreciation for the year ended 31st March 2024 ₹ 80,000
Purchase of Machinery during the year ₹ 4,00,000
Part of machinery was sold at a profit of ₹ 50,000
a) ₹ 2,00,000
b) ₹ 2,50,000
c) ₹ 3,00,000
d) ₹ 3,50,000
20. Which of the following will result in flow of cash?
a) Cash withdrawn from the bank ₹60,000
b) ₹1,00,000, 9% debentures issued to vendors of machinery
c) ₹35,000 received from debtors
d) Cheques of ₹ 40.000 deposited in the bank
Class 12 Accountancy MCQs Cash Flow Statement
21. An investment normally qualifies as cash equivalent only when it has a Short maturity, of………..from the date of acquisition.
a) Three months or more
b) Six months or less
c) One year or less
d) Three months or less
22. Which of the following is not an Investing activity?
a) Purchase of marketable securities for ₹20,000 cash.
b) Sale of building for ₹80,000 cash.
c) Sale of 500 shares (held as investment) for ₹55 each.
d) Purchase of Machinery for ₹5,00,000 cash.
23. Which of the following activities are operating activities for the purpose of preparing 'Cash Flow Statement'?
(i) Dividend and Interest received on securities.
(ii) Payment of employee benefits expenses.
(iii) Cash receipts from royalties and fees.
(iv) Issue of shares against purchase of machinery.
a) (i), (ii) and (iii)
b) (ii), (iii) and (iv)
c) (i), (ii) and (iv)
d) (ii) and (iii)
24. 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.
25. Insurance Claim received by BT. Ltd. of ₹ 5,00,000 for Loss of Machinery due to theft will be recorded in Cash Flow Statement in which of the following manner?
a) Added under Operating Activities as Extraordinary Item and Subtracted from Operating Activities also.
b) Subtracted under Operating Activities as Extraordinary Item and Added to Operating Activities also.
c) Subtracted under Operating Activities as Extraordinary Item and Inflow under Investing Activities also.
d) Added under Operating Activities as Extraordinary Item and Outflow under Investing Activity also.
26. If the amount of goodwill is ₹ 40,000 at the beginning of a year and ₹ 48,000 at the end of that year then while preparing cash flow statement its effect on cash flow will be:
a) Cash received from operating activities
b) Cash used (payment) in investing activities
c) Cash used (payment) from operating activities
d) Cash used (payment) from financial activities
27. If a machine whose original cost is ₹ 60,000 having accumulated depreciation ₹ 22,000, were sold for ₹ 40,000 then while preparing cash flow statement its effect on cash flow will be:
a) Cash flow from financing activities ₹ 40,000
b) Cash flow from financing activities ₹ 38,0000
c) Cash flow from investing activities ₹ 40,000
d) Cash flow from investing activities ₹38,000
28. ST Ltd. purchased furniture for ₹ 2,00,000 paying 60% by issue of equity shares of ₹ 10 each and the balance by a cheque. This transaction will result in:
a) Cash used in investing activities ₹ 2,00,000.
b) Cash generated from financing activities ₹ 1,20,000.
c) Increase in cash and cash equivalents ₹ 80,000.
d) Cash used in investing activities ₹ 80,000.
More questions will be added from time to time...