Cash Flow Statement CBSE Questions & Answers

Cash Flow Statement

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.

Questions & Answers

1
Which activity result in change in size and composition of the share capital
  • A
    management activities
  • B
    financing activities
    Correct
  • C
    operating activities
  • D
    investment activities
2
In determining cash flow from operating activities (indirect method) , adjustment to net income should not include
  • A
    A deduction for bond premium amortization
  • B
    An addition for patent amortization
  • C
    An addition for a gain on sale of equipment
    Correct
  • D
    An addition for depreciation expenses
3
Match the following. options are
Question 3 figure 1
  • A
    a(i), b(iii),c(ii)
  • B
    a(ii), b(i),c(iii)
  • C
    a(iii), b(ii),c(i)
  • D
    a(ii), b(iii),c(i)
    Correct
4
While calculating cash flow statement form investment activities following items should be added except
  • A
    Cash received from sale of fixed assets
  • B
    Cash paid for purchase of Investment
    Correct
  • C
    Cash received from sale of investments
  • D
    Interest received
5
Following are the outflow of cash except
  • A
    Redemption of debenture in cash
  • B
    Redemption of debenture in cash
  • C
    Cash received from issue of equity share capital
    Correct
  • D
    Buy back of equity share
6
ABC ltd. Purchase a building for Rs.500000 and paid the consideration by issue of equity shares. Anil the accountant has prepared the cash flow statement and depicted the transaction as follows. Investing activity – Purchase of building – Rs.500000, Financial activity – Issue of share – Rs.500000. Is this depiction is according to the AS-3
  • A
    No there is no inflow or outflow of cash
    Correct
  • B
    Yes there is outflow of cash
  • C
    Yes there is inflow of cash
  • D
    None of these
7
Profit on sale of investment will effect ____________
  • A
    None of these
  • B
    Operating activity
    Correct
  • C
    Financial activity
  • D
    Operating and financing activity
8
In a tsunami hit Ram ltd. lost its stock of Rs. 5 lakh. It received insurance claim of Rs.2.5 lakh only. How will you depict it in cash flow statement and
  • A
    Loss of Rs.250000 as operating activity
  • B
    Loss of Rs.250000 as Financing activity
  • C
    Loss of Rs.500000 as Financing activity
  • D
    Loss of Rs.500000 as operating activity
    Correct
9
Rohit Pvt ltd. After complying with provisions of the companies act 1956 bought back Rs.50000 equity shares at Rs. 50 each. In cash flow statement will you depict it
  • A
    Yes as an Managing activity
  • B
    Yes as an Financing activity
    Correct
  • C
    Yes as an Investment activity
  • D
    Yes as an operating activity
10
The P & l account of Aman pvt ltd. Shows the payment of income tax as Income tax – Rs.500000, Income tax on capital gains- Rs.50000, Dividend tax – Rs.25000. How will you classify the above in cash flow statement?
  • A
    Income tax- Financing, Income tax on capital gains- Investment activity Dividend tax- operating activity
  • B
    Income tax- operating activity, Income tax on capital gains- Financing activity Dividend tax- Investment activity
  • C
    Income tax- Investment, Income tax on capital gains- operating activity Dividend tax- Financing activity
  • D
    Income tax- operating activity, Income tax on capital gains- Investment activity Dividend tax- Financing activity
    Correct
11
Extraordinary items shown as expenses in the statement of P & L account are _____ to Net profit .But towards the end it is _____ to complete cash flow from operating activities
  • A
    Deducted , Added
  • B
    Added, Deducted
    Correct
  • C
    Deducted , Deducted
  • D
    Added, Added
12
Interest on long term borrowings is an ____ relating to financial activities and shown as ______ of cash
  • A
    Outflow, Expense
  • B
    Expense , Income
  • C
    Expense , Outflow
    Correct
  • D
    Income , Inflow
13
Interest received are ____ receipts being related to investments and shown as ____ of cash under investment activity
  • A
    Non-trading , Outflow
  • B
    trading , Outflow
  • C
    Non-trading, Inflow
    Correct
  • D
    trading , Inflow
14
What will be the effect of Decrease in Bill receivables on cash Inflow
  • A
    No effect
  • B
    None of these
  • C
    Decrease
  • D
    Increase
    Correct
15
Which of the following items will increase the inflow of cash (a) Decrease in stock (b) Increase in creditors (c) Increase in debtors (d) Increase in outstanding expenses. Options are
  • A
    a,b,c,d
  • B
    a,b,c
  • C
    a,b,d
    Correct
  • D
    b,c,d