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

Increase in share capital due to bonus share will be ____ in the Cash flow statement since it is the capitalization of reserves

A
None of these
B
Deducted
C
Added
D
Not be shown
Correct

Which of the following account will not be included in Cash Flow statement

A
Dividend Received
B
Share issue expenses
C
Interest paid
D
Bonus share
Correct

Which of the following statements does not correctly describe an adjustment to net income when determining cash flows from operating activities when using the indirect method?

A
An increase in accounts payable will be added to net income
B
An increase in accounts receivable will be deducted from net income.
C
An increase in accrued liabilities will be deducted from net income.
Correct
D
A loss on the sale of a depreciable asset will be added to net income.

Which one is an example of a transaction a part of which is classified as an investing activity and another part is classified as a financing activity

A
Payment to Debtors
B
payment of salary to staff
C
payment for purchase of fixed assets
D
Payment of installments of an asset purchased on Hire-purchase basis
Correct

Purchase of plant and machinery will be _______

A
Deducted in Financing activities
B
Added in Financing activities
C
Added in Investing activities
D
Deducted in investing activities
Correct

Michelle Company reported the following for its most recent fiscal year. Calculate cash flow from indirect method

A
Rs.546000
B
Rs.596000
C
Rs.236000
Correct
D
Rs.336000

Assume the balance of Equipment for Mohan Company was Rs.100,000 at the beginning of the year and Rs.120,000 at the end of the year. Equipment increased by

A
Rs.0000
B
Rs.40000
C
Rs.20,000
Correct
D
Rs.12000

A detailed reconstruction of Equipment revealed the following: The equipment sold had an original cost of Rs.10,000 and accumulated depreciation of Rs.,000, so its book value was Rs.6,000. Assuming the equipment was sold for Rs.5,000, a loss of Rs.1,000 on sale of equipment was incurred. The investing activities section for Michelle Company would report the following:

A
Profit of Rs.2000
B
Profit of Rs.1000
C
Loss of Rs.2000
D
Loss of Rs.1000
Correct

if a company issued stock for Rs.50,000 but repaid debt of Rs.20,000, the financing activities section would report the Net cash provided by financing activities

A
Rs.20000
B
Rs.20000
C
Rs.30,000
Correct
D
Rs.70000

An item of plant costing Rs. 20000 having book value of Rs. 1400 was sold for Rs.18000 during the year and opening balance of provision for depreciation is Rs.30000 and closing balance is Rs.350000. Calculate profit on sale

A
Rs.5000
B
Rs.4000
Correct
C
Rs.6000
D
Rs.8000

From following information calculate cash flow from operating activities

A
Rs.174500
B
Rs.157400
C
Rs.147100
Correct
D
Rs.165200

Purchase of office equipment will affect _________

A
None of these
B
Operating activities
C
Investing activities
Correct
D
Financial activities

Calculate cash flow from operating activities Indirect method

A
Rs.30000
B
Rs.28000
C
Rs.32000
Correct
D
Rs.34000

Calculate cash flow from operating activities

A
Rs.19500
B
Rs.19000
Correct
C
Rs.18500
D
Rs.19900

Calculate Net profit before tax. The information given below. Net profit –Rs.11000, Income tax refund- Rs.4000, Proposed dividend-Rs. 5000, Provision for tax- Rs.5000

A
Rs.17000
Correct
B
Rs.19000
C
Rs.16000
D
Rs.18000