Cash Flow Statement MCQ Questions for Class 12 Accountancy Chapter 11 with Answers

NCERTCOURSE.COM- Find here the NCERT/CBSE chapter-wise Multiple Choice Questions from Class 12 Accountancy book Chapter 11 Cash Flow Statement with Answers Pdf free download. This may assist you to understand and check your knowledge about the chapters. Students also can take a free test of the Multiple Choice Questions of Cash Flow Statement. Each question has four options followed by the right answer. These MCQ Questions are selected supported by the newest exam pattern as announced by CBSE.

MCQ Questions for Class 12 Accountancy with Answers

Q1. Which of the following will not come under anywhere in cash flow statement?

(i) Repayment of borrowings
(ii) Issue of bonus shares
(iii) Sale of investments
(iv) Dividend paid

(ii) Issue of bonus shares

Q2. Sale of Copyrights is concerned with_______

(i) Investing Activities
(ii) Operating Activities
(iii) Both Operating Activities and Financing Activities
(iv) Financing Activities

(i) Investing Activities

Q3. Cash sales in :

(i) Operating Activity
(ii) Investing Activity
(iii) Financing Activity
(iv) None of these

(i) Operating Activity

Q4. Which of the following statement is incorrect about cash flow statement?

(i) It provides information about cash inflows and cash outflows .
(ii) It provides information of flows of cash under three major categories
(iii) It reconciles bank balance with the bank balance as per bank statement
(iv) It helps in preparing cash budget

(iii) It reconciles bank balance with the bank balance as per bank statement

Q5. Dividend received by other than financial enterprise is shown in cash flow statement under

(i) Operating activity
(ii) Financing activity
(iii) Investing activity
(iv) None of the above

(iii) Investing Activity

Q6. Issue of shares in consideration of purchase of plant and machinery results into :

(i) Inflow of Cash
(ii) Outflow of Cash
(iii) Neither Inflow nor Outflow
(iv) None of these

(iii) Neither Inflow nor Outflow

Q7. Which of the following is the source of cash?

(i) Cash deposited into bank
(ii) Cash withdrawn from the bank
(iii) Sale of marketable securities
(iv) Sale of goods for cash costing ₹ 20,000 for ₹ 16,000.

(iv) Sale of goods for cash costing ₹ 20,000 for ₹ 16,000.

Q8. Dividend received by financing enterprise is shown in cash flow statement under

(i) Operating activity
(ii) Financing activity
(iii) Investing activity
(iv) None of the above

(i) Operating activity

Q9. Which of the following is an example of Cash Flow from Operating Activities ?

(i) Purchase of Machinery
(ii) Issue of Shares
(iii) Purchases of Inventory for Cash
(iv) Purchases of Investment

(iii) Purchases of Inventory for Cash

Q10. While calculating cash flows from operating profit, which of the following is not considered in the net profit?

(а) Amortisation of goodwill
(ii) Writing off bad debts
(iii) Writing off depreciation
(iv) Interest paid on bank overdraft

(ii) Writing off bad debts

Q11. An example of cash flow from investing activity is :

(i) Issue of debenture
(ii) Repayment of long-term loan
(iii) Purchase of raw materials for cash
(iv) Sale of investment by non-financial enterprise.

(iv) Sale of investment by non-financial enterprise.

Q12. While calculating cash flow from operating netivities which will be deducted ?

(i) Increase in Creditors
(ii) Increase in Debtors
(iii) Decrease in Debtors
(iv) Decrease in Prepaid Expenses

(ii) Increase in Debtors

Q13. Where will you show sale and purchase of shares and securities if it relates to revenue generating activity?

(i) Cash flow from investment activities
(ii) Cash flows from financing activities
(iii) Cash flows from operating activities
(iv) Cash and cash equivalents

(iii) Cash flows from operating activities

Q14. Which of the following item is considered as Cash Equivalents?

(i) Marketable Securities
(ii) Debtors
(iii) Investment
(iv) Bills of Exchange

(i) Marketable Securities

Q15. An example of Cash Flow from Investing Activities :

(i) Cash Sales
(ii) Issue of Shares
(iii) Payment of cash for purchase of machinery
(iv) Payment of Dividend

(iii) Payment of cash for purchase of machinery

Q16. Investments made by a financial enterprise with the purpose to resell after the expiry of three months will come under which of the following activity?

(i) Investment
(ii) Financing
(iii) Operating
(iv) Cash equivalents

(iii) Operating

Q17. Cash Flow Statement is based upon

(i) Accrual basis of accounting
(ii) Cash basis of accounting
(iii) Accounting equation
(iv) None of these

(ii) Cash basis of accounting

Q18. How will you treat payment of ‘Interest of Debentures’ while preparing a Cash Flow Statement ?

(i) Cash Flow from Operating Activities
(ii) Cash Flow from Investing Activities
(iii) Cash Flow from Financing Activities
(iv) Cash Equivalents

(iii) Cash Flow from Financing Activities

Q19. Cash deposit with the bank with a maturity date after two months belongs to which of the following while preparing cash flow statement

(i) Investing Activities
(ii) Financing Activities
(iii) Cash and Cash Equivalents
(iv) Operating Activities

(iii) Cash and Cash Equivalents

Q20. Payment of income tax is classified under

(i) Operating activity
(ii) Financing activity
(iii) Investing activity
(iv) None of the above

(i) Operating activity

Q21. Interest received by a finance company is classified under which kind of activity while preparing a Cash Flow Statement ?

(i) Cash Flow from Operating Activities
(ii) Investing Activities
(iii) Financing Activities
(iv) Cash Equivalent

(i) Cash Flow from Operating Activities

Q22. Which of the following transactions will not result into flow of cash?

(i) Issue of equity shares of ₹ 1,00,000.
(ii) Purchase of machinery of ₹ 1,75,000
(iii) Redemption of 9% debentures ₹ 3,50,000
(iv) Cash deposited into bank ₹ 15,000

(iv) Cash deposited into bank ₹ 15,000

Q23. Cash Credit is concerned with __

(i) Financing Activities
(ii) Investing Activities
(iii) Operating Activities
(iv) Cash and Cash Equivalents

(i) Financing Activities

Q24. Which of the following item is not considered as cash equivalents ?

(i) Bank Overdraft
(ii) Commercial Papers
(iii) Treasury Bills
(iv) Investment

(iv) Investment

Q25. Cash from operation is equal to :

(i) Net Profit + Increase in Current Assets
(ii) Net Profit + Decrease in Current Liabilities
(iii) Operating Profit + Adjustment of Current Assets and Current Liabilities
(iv) All of the above

(ii) Net Profit + Decrease in Current Liabilities

I Think the given NCERT MCQ Questions for class 12 Accountancy book Chapter 11 Cash Flow Statement with Answers Pdf free download will assist you. If you’ve got any queries regarding CBSE Class 12 Accountancy Cash Flow Statement MCQs Multiple Choice Questions with Answers, drop a comment below and that we will come back to you soon.

MCQ Class 12 Accountancy with answers Part A & Part B

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