Cash flow statement MCQ Question Answers suitable for CUET 2025 from Class 12 Accountancy Chapter 6

To score full marks in the CUET 2025 Accountancy exam, Practice Class 12 Accountancy Chapter 6 Cash flow statement MCQ Test any number of times free on our website. These questions have been created by our experts from the latest Class 12 Accountancy Syllabus and as per latest exam pattern. Multiple Choice Questions (MCQs) are a type of objective assessment in which a person is asked to choose one or more correct answers from a list of available options. An MCQ presents a question along with several possible answers. Most of the exams in India including the CUET exam conduct an online test to check your knowledge.

Class 12 Accountancy Chapter 6 MCQs

1. Which of these Belongs to Operating activity?
a.
b.
c.
d.

2. ______ are the acquisition and disposal of long-term assets and other investments not included in cash equivalents. Investing activities relate to purchase and sale of long-term assets or fixed assets such as machinery, furniture, land and building, etc
a.
b.
c.
d.

3. ______shows inflow and outflow of cash and cash equivalents from various activities of a company during a specific period.
a.
b.
c.
d.

4. Cash from Operating activities will decrease due to
a.
b.
c.
d.

5. Against the Changes in current assets and liabilities during the period. Adjustments should be made as Increase in current assets and decrease in current liabilities are to be__________
a.
b.
c.
d.

6. As per AS-3, ‘Cash’ comprises of; -
a.
b.
c.
d.

7. While Preparing Cash Flow Statement, non-cash items and non-Operating items are not required to be adjusted Under_______
a.
b.
c.
d.

8. If the net profits earned during the year is Rs. 50000 and Number of debtors in the beginning and the end of the year is Rs. 10000 and Rs. 20000 respectively, then the cash from operating activities will be equal to Rs. _______
a.
b.
c.
d.

9. Where Purchase of goodwill in Cash Flow Statement Will appear Under?
a.
b.
c.
d.

10. Which of the Transaction will not be regarded as cash flow?
a.
b.
c.
d.

11. Capital gains tax paid on sale of fixed assets should be classified under_________.
a.
b.
c.
d.

12. Which of the following will come under operating activity?
a.
b.
c.
d.

13. As per AS-4, Contingencies and Events Occurring after the Balance Sheet Date, Proposed dividend is shown in the Notes to Accounts. It will be shown as contingent liability since it becomes a liability after it is declared (approved) by the shareholders
a.
b.
c.
d.

14. _______are non-recurring in nature and hence cash flows associated with extraordinary items should be classified and disclosed separately as arising from operating, investing or financing activities
a.
b.
c.
d.

15. From the following information Find the cash Flow. Operating Profit before working capital changes -Rs.100000, Depreciation on fixed assets- Rs.15000, Loss on sale of Furniture- Rs. 5000, Interest paid- Rs. 13000, Increase in debtors – Rs. 8000 Decrease in stock-Rs. 7000 Increase in creditors -Rs. 4000
a.
b.
c.
d.

16. As Per Cash Flow Statement, when a firm invests in fixed assets and short-term financial investments results into
a.
b.
c.
d.

17. Which Statement is Incorrect Regarding Cash Flow Statement?
a.
b.
c.
d.

18. Which is incorrect Cash Flow Under Financing Activities
a.
b.
c.
d.

19. Declaration Of Dividend of Previous Year will be Classified as
a.
b.
c.
d.

20. A company receives a dividend of Rs.2 Lakhs on its investment in other company’s shares. In case If its a Finance Company, it will be classified under which kind of activity?
a.
b.
c.
d.


 

 

To summarize, revising for free using our MCQs on Class 12 Accountancy Chapter 6 Cash flow statement is highly beneficial for scoring full marks on the CUET 2025 Accountancy exam. We provide a sophisticated online test platform tailored for unlimited practice through proficiently crafted questions built on the most recent syllabus and exam pattern. Practicing MCQs regularly will boost conceptual understanding as they are significant for objective assessments. Start practicing now to succeed in your CUET 2025 Accountancy exam!

Also See : 

Class 12 Accountancy Part 1

Accounting for share capital MCQs Class 12 Accountancy Chapter 1 (Part 1)

Accounting for partnership: basic concepts MCQs Class 12 Accountancy Chapter 2 (Part 1)

Financial statements of a company MCQs Class 12 Accountancy Chapter 3 (Part 1)

Analysis of financial statements MCQs Class 12 Accountancy Chapter 4 (Part 1)

Accounting ratios MCQs Class 12 Accountancy Chapter 5 (Part 1)

Class 12 Accountancy Part 2

Accounting for not for profit organisation MCQs Class 12 Accountancy Chapter 1 (Part 2)

Issue and redemption of debentures MCQs Class 12 Accountancy Chapter 2 (Part 2)

Reconstitution of a partnership firm – admission of a partner MCQs Class 12 Accountancy Chapter 3 (Part 2)

Retirement/death of a partner MCQs Class 12 Accountancy Chapter 4 (Part 2)

Dissolution of partnership firm MCQs Class 12 Accountancy Chapter 5 (Part 2)