Class 12 Accountancy Chapter 6 – Cash flow statement MCQ Question and Answers – MCQs for Practice by Meenu Saini | May 25, 2022 | General | 0 comments Class 12 Accountancy Chapter 6 – Cash flow statement MCQ Question Answers for CUET 2024 1. _______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 activitiesa.Non-Extraordinary itemsb.Dividendsc.Taxesd.Extraordinary Items Loading... 2. 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.Deductedb.None of the Abovec.Added Upd.Ignored Loading... 3. Capital gains tax paid on sale of fixed assets should be classified under_________.a.Operating Activitiesb.investing activitiesc.Financing Activitiesd.Cash & Cash Equivalents Loading... 4. Which of the following will come under operating activity?a.Interest received on short-term investmentsb.Sale of marketable securitiesc.Issue of shares for cashd.Trading commission received by a manufacturing company Loading... 5. 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. 4000a.Rs 124000b.Rs 103000c.Rs 100000d.Rs 118000 Loading... 6. Which Statement is Incorrect Regarding Cash Flow Statement?a.A cash flow statement when used along with other financial statements provides informationb.The primary objective of CFS is to provide useful information Importantly of Cash Inflows Instead of cash flowsc.It also helps in balancing its cash inflow and cash outflow, keeping in response to changing conditiond.It also enhances the comparability of the reporting of operating performance Loading... 7. ______ 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, etca.Operating Activitiesb.Investing activitiesc.Financing Activitiesd.Cash & Cash Equivalents Loading... 8. Which of the Transaction will not be regarded as cash flow?a.Sale of Plant and Machineryb.Redemption of Preference Sharesc.Cash Deposited in Bank Accountd.Issue of Equity Shares Loading... 9. Which is incorrect Cash Flow Under Financing Activitiesa.Cash purchase of Machinery and Plantb.Cash repayments of amounts borrowedc.Interest paid on debentures and long-term loans and advances.d.Dividends paid on equity and preference capital Loading... 10. While Preparing Cash Flow Statement, non-cash items and non-Operating items are not required to be adjusted Under_______a.Direct Methodb.Indirect Methodc.Residual Methodd.Non cash Method Loading... 11. Which of these Belongs to Operating activity?a.Receipt from royalties & Purchase of inventoryb.Procurement of loansc.Proceeds from issue of equity sharesd.Redemption of preference Loading... 12. As Per Cash Flow Statement, when a firm invests in fixed assets and short-term financial investments results intoa.Deceased Cash Inflowb.Deceased Cash Outflowc.Increased Cash Inflowd.Increased Cash Outflow Loading... 13. As per AS-3, ‘Cash’ comprises of; -a.cash in hand and demand deposits with banks,b.None of the Abovec.short-term highly liquid investmentsd.Both a and b Loading... 14. 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.Cash flow from Operating Activitiesb.Cash flow from Financing Activitiesc.Cash & cash Equivalentsd.Cash flow from Investing Activities Loading... 15. Where Purchase of goodwill in Cash Flow Statement Will appear Under?a.Cash flow from Investing Activitiesb.Cash flow from Operating Activitiesc.Cash & cash Equivalentd.Cash flow from Financing Activities Loading... 16. Declaration Of Dividend of Previous Year will be Classified asa.Cash flow from Investing Activities in Current Yearb.None of the Abovec.Cash flow from Operating Activities in Current Yeard.Cash flow from Financing Activities in Previous Year Loading... 17. ______shows inflow and outflow of cash and cash equivalents from various activities of a company during a specific period.a.Cash Flow Statementb.Both A and Bc.Fund Flow Statementd.None of the Above Loading... 18. Cash from Operating activities will decrease due toa.Decrease in Current Liabilitiesb.Neither of the twoc.Both A and B aboved.Increase in Current Assets Loading... 19. 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 shareholdersa.Balance Sheet Assetb.Current Liabilitiesc.Reserves and Surplusd.Contingent Liability Loading... 20. 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.60000b.10000c.40000d.50000 Loading... Loading... Also See : Accountancy Part 1 Accountancy Chapter 1 (Part 1) – Accounting for share capital MCQs Accountancy Chapter 2 (Part 1) – Accounting for partnership: basic concepts MCQs Accountancy Chapter 3 (Part 1) – Financial statements of a company MCQs Accountancy Chapter 4 (Part 1) – Analysis of financial statements MCQs Accountancy Chapter 5 (Part 1) – Accounting ratios MCQs Accountancy Part 2 Accountancy Chapter 1 (Part 2) – Accounting for not for profit organisation MCQs Accountancy Chapter 2 (Part 2) – Issue and redemption of debentures MCQs Accountancy Chapter 3 (Part 2) – Reconstitution of a partnership firm – admission of a partner MCQs Accountancy Chapter 4 (Part 2) – Retirement/death of a partner MCQs Accountancy Chapter 5 (Part 2) – Dissolution of partnership firm MCQs Submit a Comment Cancel replyYou must be logged in to post a comment.