Understudies can solve Class 12 Accountancy MCQ Questions of Cash Flow Statement with Answers to realize their level of preparation. MCQ Questions for Class 12 Accountancy with Answers were Prepared Based on Latest Exam Pattern and syllabus. We have given Cash Flow Statement Class 12 Accountancy MCQ Questions with Answers to assist understudies with understanding the idea well overall.
MCQ Questions are a significant piece of exams for Class 12 Accountancy and whenever rehearsed appropriately can assist you with getting better grades. Allude to more Chapter-wise MCQ Questions for NCERT Class 12 Accountancy for all subjects. Given beneath are significant MCQ Questions of the Cash Flow Statement to analyze your comprehension of the topic. The appropriate answers are additionally given for your reference.
1. Preparation of cash flow statement is :
(a) Mendatory
(b) Recommendatory
(c) Required under the Companies Act
(d) None of these
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
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
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
5. Cash sales in :
(a) Operating Activity
(b) Investing Activity
(c) Financing Activity
(d) None of these
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)
7. Cash flow statement is prepared for financial planning of
(A) Long range
(B) Medium range
(C) Short range
(D) Very Long range
8. 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(B) Cash withdrawn from Bank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
9. Which of the following is not source of cash?
(A) Issue of shares
(B) Purchase of Machinery
(C) Sale of Asset
(D) Dividend received
10. Which of the following is not application of cash?
(A) Increase in Debtors
(B) Increase in Inventory
(C) Increase in Bills Payable
(D) Increase in Prepaid Expenses
11. Cash from operating activities consists of:
(A) Operating Profit
(B) Decrease/Increase in Current Assets
(C) Decrease/Increase in Current Assets
(D) All of the Above
12. While calculating operating profit which will be added to net profit:
(A) Preliminary Expenses Written off
(B) Depreciation
(C) Loss on Sale of Asset
(D) All of the Above
13. Dividend received by other than financial enterprise is shown in the Cash Flow Statement under
a) Operating Activities
b) Investing Activities
c) Financing Activities
d) General Activities
14. Cash Flow Statement is based on
a) Accrual basis of accounting
b) Cash basis of accounting
c) Mixed basis of accounting
d) None of these
15.The dividend received by the financial enterprise is shown in the Cash Flow Statement under
a) Operating Activities
b) Investing Activities
c) Financing Activities
d) General Activities
16. Interest received on investments is shown in the Cash Flow Statement under
a) Operating Activities
b) Investing Activities
c) Financing Activities
d) None of these
17. Payment of Income Tax is shown as
a) Operating Activities
b) Investing Activities
c) Financing Activities
d) General Activities
18. Interest paid is shown in Cash Flow Statement under
a) Operating Activities
b) Investing Activities
c) Financing Activities
d) None of these
19. Sale of Copyrights is concerned with_______
a) Investing Activities
b) Operating Activities
c) Both Operating Activities and Financing Activities
d) Financing Activities
20. Dividend Received is concerned with_________
a) Investing Activities
b) Operating Activities
c) Financing Activities
d) Both Operating Activities and Financing Activities
21. Refund of income tax is the part of
a) Operating activities in Cash Flow Statement
b) Financing Activities in Cash Flow Statement
c) Investing Activities in Cash Flow Statement
d) All of the options
22. Rent received is classified under
a) Investing Activities
b) Operating Activities
c) Cash and Cash Equivalents
d) Financing Activities
23. In indirect method, Which is used to calculate the amount of net cash flow from operating activities
a) Net income figure from the income statement
b) Net loss figure from Profit & Loss
c) Net Profit figure from Profit & Loss
d) All of the options
24. Which activities are the same for Computation of Direct and indirect method
a) Cash Flow from Financing Activities and Cash flow from Investment activities
b) Cash Flow from Operating Activities and Cash flow from Investment activities
c) Cash Flow from Operating Activities and Cash flow from Financial activities
d) All of the options
25. The main difference in direct and indirect method is to calculate the
a) Cash flow from operating activities
b) Cash Flow from Financing Activities
c) Cash Flow from Investing Activities
d) All of the options
