CBSE Class 12 Accountancy Cash Flow Statement Worksheet Set B

Question. Sale of Copyrights is concerned with_______
(a) Operating Activities
(b) Investing Activities
(c) Both Operating Activities and Financing Activities
(d) Financing Activities

Answer: B

Question. The most important objective of cash flow statement is that helps to ascertain the and outflows of cash and from
(a) All of the options
(b) Gross inflows
(c) Outflows of cash
(d) Cash equivalents

Answer: A

Question. Dividend paid by a Trading company is classified under which kind of activity while preparing cash flow statement?
(a) Cash Flow from Operating Activities
(b) Cash Flow from Investing Activities
(c) Cash Flow from Financing Activities
(d) No Cash Flow

Answer: C

Question. A decrease in the balance of Accounts Receivable.
(a) Operating Activity
(b) Investing Activity
(c) Financing Activity
(d) Supplemental Activity

Answer: A

Question. A company who issues bonds or stocks in result raised funds which finally
(a) Decreased cash
(b) Increases cash
(c) Increased liabilities
(d) Increased equity

Answer: B

Question. Proceeds from the sale of equipment used in the business.
(a) Investing Activity
(b) Operating Activity
(c) Financing Activity
(d) Supplemental Activity

Answer: A

Question. A financial statement that shows the inflows and outflows of cash during a particular period of time is known as
(a) Income statement
(b) Statement of retained earnings
(c) Statement of cash flows
(d) Balance sheet

Answer: C

Question. For the calculation of cash flow from operating activities, payments and receipts shown in Profit & Loss account are converted into payments and receipts actually in cash by eliminating
(a) Non-cash revenue from the revenue earned and Non-cash expenses from expenses incurred
(b) Non-cash revenue from the revenue earned
(c) Non-cash expenses from expenses incurred
(d) None of the options

Answer: A

Question. Financing activities brings changes in
(a) Size and composition of owners equities
(b) Borrowing of the enterprise
(c) None of the options
(d) Size and composition of owners equities and Borrowing of the enterprise

Answer: D

Question. Dividend paid by a financial company is shown as cash outflow under
(a) Operating Activities.
(b) investing Activities.
(c) Financing Activities.
(d) Cash and Cash Equivalent.

Answer: C

Question. Principal revenue generating activities of an enterprise are called as
(a) Operating activities
(b) Financing activities
(c) Investing activities
(d) All of the options

Answer: A

Question. The exchange or conversion of long-term bonds into common stock.
(a) Operating Activity
(b) Supplemental Activity
(c) Investing Activity
(d) Financing Activity

Answer: B

Question. For the calculation of cash flow from operating activities, payments and receipts shown in Profit & Loss account are converted into payments and receipts actually in cash by eliminating
(a) Non-cash revenue from the revenue earned and Non-cash expenses from expenses incurred
(b) Non-cash revenue from the revenue earned
(c) Non-cash expenses from expenses incurred
(d) None of the options

Answer: A

Question. ABC Ltd had investment of Rs 68,000 as on 31.3.2013 and investment of Rs 56,000 as on 31.3.2014. During the year ABC Ltd sold 40% of its investments being held in the beginning of period at a profit of Rs 16,800. Determine cash flow from investing activities.
(a) Rs. 28,800
(b) Rs. 59,200
(c) Rs. 72,800
(d) All of the options

Answer: A

Question. While preparing Cash Flow Statement, non-cash items and non-operating items are not required to be adjusted under________
(a) Direct method
(b) Indirect method
(c) Average method
(d) All of the options

Answer: A

Question. Payment of income Tax is shown as
(a) investing Activities.
(b) Financing Activities.
(c) Operating Activities.
(d) General Activities.

Answer: C

Question. If the amount of goodwill is Rs.40,000 at the beginning of a year and Rs.48,000 at the end of that year then while preparing cash flow statement its effect on cash flow will be:
(a) Cash used (Payment) in Investing Activities Rs. 8,000
(b) Cash received from operating activities Rs. 8,000
(c) Cash used (Payment) from Operating Activities Rs. 8,000
(d) Cash used (Payment) from Financial Activities Rs.8,000

Answer: A

Question. Which of the following is source of cash?
(a) Cash deposited into Bank
(b) Cash withdrawn from Bank
(c) Sale of Goods costing ₹10,000 for ₹8,000
(d) Sale of marketable securities for cash

Answer: C

Question. Given salary expenses Rs 40,000, Outstanding in the beginning of the year: Rs 5,000 and outstanding at the end of the year Rs 10,000. Cash outflow on salary will be
(a) Rs. 35000
(b) Rs. 45,000
(c) Rs. 55,000
(d) Rs. 15,000

Answer: A

Question. 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 above

Answer: D

Question. Which of the following is incorrect about the statement of cash flows?
(a) It provides information about the cash receipt and cash payments of an enterprise.
(b) It reconciles ending cash balance with the balance as per bank statement.
(c) It provides information about the operating, investing and financing activities.
(d) It explains the deviation of cash from Earnings.

Answer: B

Question. Net Profit for the year Rs. 15000 , Interest Received in advance on 1st Jan 2004 Rs. 2000 and 31st December 2004 Rs. 3000, Cash from operation will be
(a) Rs. 22000
(b) Rs, 13000
(c) Rs. 16000
(d) Rs. 15000

Answer: C

Question. Increase in the amount of bills receivable results in
(a) Decrease in cash
(b) Increase in cash
(c) No change in cash
(d) All of the options

Answer: A

Question. An example of Cash Flows from Financing Activity is :
(a) Credit Revenue from Operations
(b) Cash receipts from issue of shares
(c) Sale of Investments
(d) Interest Received

Answer: B

Question. 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) Cash Flow from Investing Activities
(c) Cash Flow from Financing Activities
(d) No Cash Flow

Answer: A

Question. An example of cash flow from investing activity is :
(a) Issue of debenture
(b) Repayment of long-term loan
(c) Purchase of raw materials for cash
(d) Sale of investment by non-financial enterprise.

Answer: D

Question. Which of the following item is considered as Cash Equivalents?
(a) Marketable Securities
(b) Debtors
(c) Investment
(d) Bills of Exchange

Answer: A

Question. GSC Ltd. purchased machinery of Rs. 10,00,000 issuing a cheque of Rs. 2,50,000 and 10% Debentures of Rs. 7,50,000. ln the Cash Flow Statement, the transaction will be shown as
(a) Outflow under Investing Activity Rs. 10,00,000, inflow under Financing Activity as Receipt for Debentures Rs. 7,50,000.
(b) Outflow under investing Activity Rs. 2,50,000.
(c) Inflow of Rs. 7,50,000 as Financing Activity.
(d) None of the above.

Answer: B

Question. AS-3 (revised ) deals with statement of changes in financial position on ________
(a) Cash Basis
(b) Non Cash Basis
(c) On Accrual Basis
(d) All of the options

Answer: A

Question. Redemption of Preference shares comes under
(a) Cash Flow from Operating Activities
(b) Cash Flow from Investing Activities
(c) Cash Flow from Financing Activities
(d) All of the options

Answer: C

Question. Which of the following is not a source of finance
(a) Fixed Assets
(b) Debentures
(c) Bank Overdraft
(d) Bank Loan

Answer: A

Question. Which items will be added in operating activities
(a) Decrease in stock
(b) Increase in creditors
(c) Increase in outstanding expenses
(d) All of the options

Answer: D

Question. Mention the net amount of sourceof cash when a fixed asset (having book value of Rs. 15,000) is sold at a loss of Rs. 5,000.
(a) Rs. 15000
(b) Rs. 20000
(c) Rs. 10000
(d) Rs. 30000

Answer: B

Question. Under Cash Flow from Operating Activities incorporates are
(a) Cash received from customers
(b) Paid to suppliers
(c) Paid for operating costs
(d) All of the options

Answer: D

Question. Cash Credit is concerned with __________
(a) Financing Activities
(b) Investing Activities
(c) Operating Activities
(d) Cash and Cash Equivalents

Answer: A

Question. Cash flow statement is prepared for financial planning of ..................
(a) Long range
(b) Medium range
(c) Short range
(d) Very Long range

Answer: C

Question. Interest paid by an investment company will come under which kind of activity while preparing cash flow statement?
(a) Cash Flow from Operating Activities
(b) Cash Flow from Investing Activities
(c) Cash Flow from Financing Activities
(d) No Cash Flow

Answer: A

Question. Cash flow arises when the net effect of a transaction _____ the amount of cash or cash equivalents
(a) Only Increase
(b) Only decrease
(c) All of the options
(d) Either increase or decrease

Answer: D

Question. Operating activities is mainly concerned with____________
(a) Current assets and current liabilities
(b) Long term liabilities and stockholders equity
(c) Long term assets
(d) All of the options

Answer: A

Question. Short term highly liquid investments which are readily convertible into known amount of cash and which are subject to an insignificant risk of change in the value are called.
(a) Cash at Bank
(b) Non-current Assets
(c) Cash Equivalents
(d) Intangible Assets

Answer: C

Question. Limitations of Cash Flow Statementv are
(a) Cash flow statement does not consider non-cash item
(b) Cash flow statement cannot replace fund flow statement or income statement
(c) It cannot be used for the purpose of comparison over a period of time
(d) All of the options

Answer: D

Question. Cash Outflows from investing activities are
(a) All of the options
(b) Cash payments to acquire fixed assets
(c) Cash payments to acquire shares, warrants
(d) Cash payments to acquire shares, warrants

Answer: A

Question. Calculate cash used in investing activities if opening and closing value of plant is ₹ 40000 and ₹100000 and depreciation on plant is ₹ 10000.
a) ₹450000
b) ₹70000
c) ₹30000
d) ₹60000

Answer: B

Question. If provision for depreciation of plant is ₹ 30000 (opening bal ) and ₹ 35000 (closing bal). An item of plant costing ₹ 20000 having book value of ₹ 14000 was sold for ₹ 18000 during the year. Calculate depreciation of plant for the year.
a) ₹12000
b) ₹11000
c) ₹10000
d) ₹ 6000

Answer: B

Question. Buy back of equity shares is
a) Investing
b) financing
c) operating
d) cash equivalent

Answer: B

Question. Issue of fully paid bonus share will result into
a) Inflow
b) outflow
c) no flow
d) cash equivalent

Answer: C

Question. Issue of 9%debentures to the vendor for the purchase of machinery will result in
a) Inflow
b) outflow
c) no flow
d) cash equivalent

Answer: C
 

1) The conversion of bonds into common stock is an example of _______ information that is reported outside of the three major sections of the statement of cash flows.

2) Companies using the indirect method must also disclose the amount paid for _____ and income taxes.

3) Cash _____ (plural) from financing activities occur when a corporation issues equity securities, bonds, and long-term notes.

4) The purchase of ______ stock will be reported as a decrease in the cash provided by financing activities.

5) The ________ (gain, loss) on the sale of an asset used in a company's business will be a deduction to the cash provided by operating activities under the indirect method.

6) The _____ (similar to repurchase or retirement) of bonds payable will decrease the cash provided by financing activities.

7) The 2010 statement of cash flows of ABC Corp. explains the change in the cash and ______ equivalents from December 31, 2009 through December 31, 2010.

8) The entire_____ from the sale of an asset used in the business will be reported as an increase in the cash provided by investing activities.

9) An increase in Accounts _____ would be an increase in the cash provided by operating activities under the indirect method.

10) Cash _____ (opposite of inflows) from investing activities occur when a corporation purchases equipment to be used in the business and when it makes a long-term investment in another corporation.