Cash Flow Statement CBSE Questions & Answers

This is Accountancy Class 12 Cash Flow Statement CBSE Questions & Answers. There are 15 questions in this test with each question having around four answer choices.


Q.1) Calculate Income tax paid. The information given below: Provision for tax opening balance – Rs.15000, Provision for tax closing balance- Rs.10000, Statement of Profit and Loss (Provision made ) – Rs.50000
  1. Rs.25000
  2. Rs.35000
  3. Rs.50000
  4. Rs.55000
Correct Answer: Rs.55000
Q.2) ABC Ltd. Has Plant and Machinery who’s written down value on 1st April 2012 was Rs.860000 and 31st March 2013 was Rs.950000. Depreciation for the year was Rs.40000. In the beginning of the year , a part of plant was sold for Rs.25000 which had a written down value of Rs.20000. Calculate the Net cash flow from Investment activities
  1. Rs.100000
  2. Rs.75000
  3. Rs.150000
  4. Rs.125000
Correct Answer: Rs.125000
Q.3) ABC Ltd. Has Plant and Machinery whose written down value on 1st April 2012 was Rs.860000 and 31st March 2013 was Rs.950000. Depreciation for the year wasRs.40000. In the beginning of the year , a part of plant was sold for Rs.25000 which had a written down value of Rs.20000. Calculate the amount of purchase of Plant and Machinery
  1. Rs.150000
  2. Rs.200000
  3. Rs.140000
  4. Rs.180000
Correct Answer: Rs.150000
Q.4) Calculate inflow of sales of patents from the following information. Opening balance of patent is Rs.30000 and closing balance patent is Rs.350000. Patents were written off to the extent of Rs.40000 and some patents were sold at a profit of Rs.20000
  1. Rs.100000
  2. Rs.90000
  3. Rs.150000
  4. Rs.80000
Correct Answer: Rs.100000
Q.5) Calculate Outflow on purchase of Machinery from the following information. Opening balance of Machinery- Rs.400000, closing balance patent- Rs.420000, Depreciation – Rs.24000.During the year a machine costing Rs.40000 with its accumulated depreciation of Rs.24000 was sold for Rs.20000
  1. Rs.60000
  2. Rs.40000
  3. Rs.4000
  4. Rs.64000
Correct Answer: Rs.60000
Q.6) Interest received on investment will be ________
  1. Deducted (Investing activities)
  2. Added (Investing activities)
  3. Deducted (Financing activities)
  4. Added (Financing activities)
Correct Answer: Added (Investing activities)
Q.7) Calculate Purchase on Investment. The information given below. Opening balance of Investment - Rs.250000, closing balance Investment -Rs. 500000, Sale – Rs.137500, Profit on sale-Rs.12500
  1. Rs.250000
  2. Rs.375000
  3. Rs.350000
  4. Rs.275000
Correct Answer: Rs.375000
Q.8) Calculate cash flow from investing activities
  1. -582500
  2. -572500
  3. -592500.0
  4. -562500
Correct Answer: -592500.0
Q.9) Calculate cash flow from financing activities. Interest paid on debentures Rs.10000
  1. Rs.70000
  2. Rs.50000
  3. Rs.60000
  4. Rs.40000
Correct Answer: Rs.50000
Q.10) Calculate cash flow from financing activities. During the year furniture costing Rs.40000 was sold at a profit of Rs.3000. Deprecation on furniture charged during the year amounted to Rs.5000
  1. Rs.60000
  2. Rs.50000
  3. Rs.40000
  4. Rs.30000
Correct Answer: Rs.30000
Q.11) Calculate cash flow from investing activities. During the year furniture costing Rs.40000 was sold at a profit of Rs.3000. Deprecation on furniture charged during the year amounted to Rs.5000
  1. Rs.9000
  2. Rs.8000
  3. Rs.10000
  4. Rs.7000
Correct Answer: Rs.7000
Q.12) Calculate cash flow statement from the following information
  1. Rs.10000
  2. Rs.6000
  3. Rs.8000
  4. Rs.12000
Correct Answer: Rs.12000
Q.13) Charging depreciation on furniture will result in _______
  1. Cash outflow
  2. No flow
  3. None of these
  4. Cash inflow
Correct Answer: No flow
Q.14) Calculate cash flow from operating activities
  1. Rs.2010000
  2. Rs.2035000
  3. Rs.2020000
  4. Rs.2015000
Correct Answer: Rs.2010000
Q.15) Which of the following transaction is untrue regarding the limitations of cash flow statement
  1. It ascertain the liquidity of enterprise
  2. It is a statement related with past data.
  3. Non cash transaction are not taken into consideration
  4. It is not used for judging the profitability of enterprises
Correct Answer: It ascertain the liquidity of enterprise

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