Refer to CBSE Class 12 Accountancy Cash Flow Statement MCQs Set F provided below available for download in Pdf. The MCQ Questions for Class 12 Accountancy with answers are aligned as per the latest syllabus and exam pattern suggested by CBSE, NCERT and KVS. Chapter 6 Cash Flow Statement Class 12 MCQ are an important part of exams for Class 12 Accountancy and if practiced properly can help you to improve your understanding and get higher marks. Refer to more Chapter-wise MCQs for CBSE Class 12 Accountancy and also download more latest study material for all subjects
MCQ for Class 12 Accountancy Chapter 6 Cash Flow Statement
Class 12 Accountancy students should refer to the following multiple-choice questions with answers for Chapter 6 Cash Flow Statement in Class 12.
Chapter 6 Cash Flow Statement MCQ Questions Class 12 Accountancy with Answers
Question: Investment costing Rs. 10,000 sold for Rs. 12,000. The amount shown in investing activity is
a) Rs. 2,000
b) Rs. 10,000
c) Rs. 12,000
d) Rs. 2,200
Answer: c
Question: Issue of Debentures for consideration other than cash is shown as
a) Inflow of Cash under Financing Activities
b) Outflow of Cash under Financing Activities
c) Neither Inflow nor Outflow of Cash
d) Inflow of Cash under Operating Activities
Answer: c
Question: Which of the following is not Cash or Cash Equivalents?
a) Cash in hand
b) Demand Deposit
c) Bank Borrowings
d) Investment which is maturing within 2 months from the date of acquisition
Answer: c
Question: Increase in Bank Overdraft is
a) Investing Activity
b) Financing Activity
c) Operating Activity
d) Cash and Cash Equivalents
Answer: b
Question: On 1st October, 2018, 10% Debentures of Rs. 1,00,000 were issued. Interest on Debenture paid by company for year ended 31st March, 2019 is
a) Rs. 10,000
b) Rs. 15,000
c) Rs. 5,000
d) Rs. 2,500
Answer: c
Question: Interest received on investment by a financing company is shown under:
a) Operating Activity
b) Investing Activity
c) Financing Activity
d) Cash and Cash Equivalents
Answer: a
Question: A company which issued bonds to raise funds which
a) Increases liability
b) Increases equity
c) Increases assets
d) Decreases cash
Answer: a
Question: Dividend paid by a financing company is shown under:
a) Operating Activity
b) Investing Activity
c) Financing Activity
d) Cash and Cash Equivalents
Answer: c
Question: Which of the following is not a cash inflow?
a) Decrease in debtors
b) Issue of shares
c) Decrease in creditors
d) Sale of fixed assets
Answer: c
Question: Issue of shares for consideration other than cash is
a) Shown under Operating Activity
b) Shown under Financing Activity
c) Shown under Investing Activity
d) Not shown in Cash Flow Statement
Answer: d
Question: Dividend paid by a non-financing company is shown under:
a) Operating Activity
b) Investing Activity
c) Financing Activity
d) Cash and Cash Equivalents
Answer: c
Question: Proceeds from raising bank loan is shown as
a) Investing Activity
b) Financing Activity
c) Operating Activity
d) Cash and Cash Equivalents
Answer: b
Question: All of the following would be included in company’s Operating Activities except
a) Income tax payment
b) Collections from customers
c) Cash payment to suppliers
d) Interest on Current Investment
Answer: d
Question: On 1st January, 2018, company issued shares of Rs. 10,00,000 and paid Rs. 10,000 as Share Issue Expense. Amount shown in Financing Activities is
a) Rs. 10,00,000 as Inflow and Rs. 10,000 as Outflow
b) Rs. 9,90,000 as Inflow
c) Rs. 10,10,000 as Inflow
d) Rs. 10,00,000 as Inflow from Shares and Rs. 10,000 as Inflow for Share Issue Expenses
Answer: a
Question: Sale of Plant and Machinery of Book Value Rs. 5,00,000 at a loss of 5%. Inflow under Investing Activities will be
a) Rs. 4,75,000
b) Rs. 5,00,000
c) Rs. 3,80,000
d) Rs. 3,60,000
Answer: a
Question: Which of the following items is not a Non-cash item?
a) Depreciation Expense
b) Amortization Expense
c) Result of Provision
d) Income tax Payment
Answer: d
Question: In case of financial enterprises, cash flow from interest and dividend received and interest paid is classified as cash flow from
a) Operating Activity
b) Investing Activity
c) Financing Activity
d) Cash and Cash Equivalents
Answer: a
Question: Of the following items, which would be subtracted from net income when using indirect method for operating activity?
a) Depreciation Expense
b) Repayment of Bonds Payable
c) Gain on Sale of Land
d) Loss on Sale of Equipment
Answer: c
Question: Interest paid on investment is shown under
a) Operating Activity
b) Financing Activity
c) Investing Activity
d) Cash and Cash Equivalents
Answer: b
Question: Issue of shares at a premium is shown as
a) Inflow under Operating Activities
b) Inflow under Financing Activities
c) Inflow under Investing Activities
d) Outflow under Financing Activities
Answer: b
Question: Sale of current investment will be shown under
a) Operating Activity
b) Financing Activity
c) Investing Activity
d) Cash and Cash Equivalents
Answer: d
Question: Which of the following will be added to Net Profit before Tax?
a) Provision for Taxation
b) Depreciation
c) Decrease in interest
d) None of the above
Answer: a
Question: An increase in Outstanding Salaries as compared to previous year’s outstanding salaries are added under __________________ in Cash Flow Statement.
Answer: Changes in Working Capita
Question: Interest on Debentures paid is added in ________ in Cash Flow from Operating
Answer: Activity.net profit
Question: Deprecation is added back to the net profit to determine Net Profit before Tax and Extraordinary Activity because it is a ____ item.
Answer: Non – Cash Item
Question: The statement that gives information about the historical changes in cash and cash equivalents is called ________________
Answer: cash flow statement
Question: The _____________ of enterprise is principal revenue producing activity.
Answer: Net sales
Question: Operating Activities are the principal revenue producing activities of an enterprise and those activities which are not ______________ or _____________.
Answer: Investing Activities, Financing Activities
Question: Receipts from Dividend is shown as ___________ activity in Cash Flow Statement.Investing
Answer: Investing
Question: The amount of Cash received from debtor is shown in ____________ activity of the company.
Answer: Operating
Question:Manufacturing expenses paid are classified into _________ activity
Answer: Operating Activities
Question: ( A&E) Net Profit before tax is Rs. 3530. Trade Receivables are Rs. 1,200 (as on 1st April, 2018) and Rs. 1,700 (as on 31stMarch, 2019).Cash Flow after Working Capital Changes will be____________.
Answer: Rs. 3,030
Question: Redemption of Debentures by converting them into equity shares would result in flow cash.
Answer: False
Question:Cash in hand and cash at bank will affect Cash Flow from Operating Activities.
Answer: False
Question: case of financial enterprises interest paid and interest recd will be treated as cash flow from operating activities.
Answer: True
Question:Dividend of Previous Year is added to net profit to calculate Net Profit before Tax and Extraordinary Activities.
Answer: True
Question: Decrease in Trade Payables is deducted to calculate Cash Flow from Operating Activities under Change in Working Capital.
Answer: True
Question: paid on Long Term Borrowings is added back to Net Profit Before Tax and Extraordinary Activities because it is an expense relating to Financing Activities.
Answer: True
Question: Refund of tax is deducted from Net Profit before Tax and Extraordinary Activities.
Answer: True
Question: Rent received is operating activity by manufacturing concern.
Answer: False
Question: ( 2018) ( 2017)
Plant and Machinery Rs. 8,00,000 Rs. 7,00,000
Accumulated depreciation Rs. – 1,20,000 Rs. -1,00,000
Rs. 6,80,000 Rs. 6,00,000
Amount to be added to Net Profit before Tax and Extraordinary Items as Non – cash Expense
(Depreciation) is Rs. 20,000
Answer: True
Question: Surplus i.e., Balance in Statement of Profit and Loss 2016 2017
(12,000) (14,000)
General Reserve 2,000 3,000
Answer: False
CBSE Class 12 Accountancy Accounting for Not for Profit Organisation MCQs Set B |
CBSE Class 12 Accountancy Retirement or Death of a Partner MCQs Set A |
CBSE Class 12 Accountancy Retirement or Death of a Partner MCQs Set B |
CBSE Class 12 Accountancy Retirement or Death of a Partner MCQs Set C |
CBSE Class 12 Accountancy Retirement or Death of a Partner MCQs Set D |
MCQs for Chapter 6 Cash Flow Statement Accountancy Class 12
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