Accountancy MCQs for Class 12 with Answers Chapter 15 Cash Flow Statement with Answer

Accounts MCQ Class 12 : Accountancy MCQs for Class 12 with Answers Chapter 15 “Cash Flow Statement“. Practicing CBSE RBSE and NCERT Accountancy MCQ Questions for Class 12 with Answers is one of the best ways to prepare for the CBSE Class 12 board exam.

Accountancy MCQs for Class 12 with Answers Chapter 15 Cash Flow Statement with Answer

Accountancy MCQs for Class 12 with Answers Chapter 15 Cash Flow Statement with Answer

Q1. Cash from Operating activities will decrease due to :

(A) Increase in Current Assets
(B) Decrease in Current Liabilities
(C) Neither of the two
(D) Both A and B above

(D) Both A and B above


Q2. Which of the following is incorrect about the statement of cash flows?

(A) It provides information about the cash receipt and cash payments of an enterprise.
(B) It reconciles ending cash balance with the balance as per bank statement.
(C) It provides information about the operating, investing and financing activities.
(D) It explains the deviation of cash from Earnings.

(B) It reconciles ending cash balance with the balance as per bank statement.


Q3. The statement of cash flows clarifies cash flows according to

(A) Operating and non-operating flows
(B) Investing and non-operating flows
(C) Inflows and outflows
(D) Operating, investing and financing activities

(D) Operating, investing and financing activities


Q4. An example of cash flow from operating activity is : Accountancy MCQs for Class 12 with Answers Chapter 15

(A) Purchase of own debenture
(B) Sale of fixed assets .
(C) Interest paid on term-deposits by a bank
(D) Issue of equity share capital

(C) Interest paid on term-deposits by a bank


Q5. An example of Cash Flow from Operating Activity is :

(A) Cash receipts from sale of goods and services
(B) Sale of long-term investments
(C) Interest Received
(D) Issue of Debentures

(A) Cash receipts from sale of goods and services


Q6. Which of the following is an example of cash flow from Operating Activities?

(A) Issue of Shares
(B) Purchase of Machinery
(C) Purchase of Investment
(D) Purchase of Inventory for Cash

(D) Purchase of Inventory for Cash


Q7. An example of cash flow from investing activity is : Accountancy MCQs for Class 12 with Answers Chapter 15

(A) Issue of debenture
(B) Repayment of long-term loan
(C) Purchase of raw materials for cash
(D) Sale of investment by non-fmancial enterprise.

(D) Sale of investment by non-fmancial enterprise.


Q8. While calculating cash flow from operating netivities which will be deducted ?

(a) Increase in Creditors
(b) Increase in Debtors
(c) Decrease in Debtors
(d) Decrease in Prepaid Expenses

(b) Increase in Debtors


Q9. While calculating cash flow from operating activities, which will be added ?

(a) Increase in Stock
(b) Increase in Creditors
(c) Decrease in Bills Payable
(d) Increase in Debtors

(b) Increase in Creditors


Q10. An example of Cash Flow from Investing Activities :

(a) Cash Sales
(b) Issue of Shares
(c) Payment of cash for purchase of machinery
(d) Payment of Dividend

(c) Payment of cash for purchase of machinery


Q11. An example of Cash Flows from Financing Activity is :

(a) Sale of goods
(b) Sale of Investment
(c) Cash receipts from issue of shares
(d) Interest received

(c) Cash receipts from issue of shares Accountancy MCQs for Class 12 with Answers Chapter 15


Q12. How will you treat payment of ‘Interest of Debentures’ while preparing a Cash Flow Statement ?

(a) Cash Flow from Operating Activities
(b) Cash Flow from Investing Activities
(c) Cash Flow from Financing Activities
(d) Cash Equivalents

(c) Cash Flow from Financing Activities


Q13. Where will you show purchase of goodwill in Cash Flow Statement:

(a) Cash Flow from Operating Activities
(b) Cash Flow from Investing Activities
(c) Cash Flow from Financing Activities
(d) Cash Equivalent

(b) Cash Flow from Investing Activities


Q14. While calculating cash flows from operating profit, which of the following is not considered in the net profit?

(а) Amortisation of goodwill
(b) Writing off bad debts
(c) Writing off depreciation
(d) Interest paid on bank overdraft

(b) Writing off bad debts


Q15. Which of the following statement is incorrect about cash flow statement?

(a) It provides information about cash inflows and cash outflows .
(b) It provides information of flows of cash under three major categories
(c) It reconciles bank balance with the bank balance as per bank statement
(d) It helps in preparing cash budget

(c) It reconciles bank balance with the bank balance as per bank statement


Q16. Which of the following will come under operating activity? Accountancy MCQs for Class 12 with Answers Chapter 15

(a) Issue of shares for cash
(b) Interest received on short-term investments
(c) Trading commission received by a manufacturing company
(d) Sale of marketable securities

(c) Trading commission received by a manufacturing company


Q17. Which of the following will not come under anywhere in cash flow statement?

(a) Repayment of borrowings
(b) Issue of bonus shares
(c) Sale of investments
(d) Dividend paid

(b) Issue of bonus shares


Q18. A plant whose original cost was ₹ 40,000, accumulated depreciation provided till the date of sale was ₹ 15,000 was sold at 20% above the book value. Cash flow from operating activities will be

(a) ₹ 48,000
(b) ₹ 30,000
(c) ₹ 18,000
(d) ₹ 25,000

(b) ₹ 30,000


Q19. Where will you show sale and purchase of shares and securities if it relates to revenue generating activity?

(a) Cash flow from investment activities
(b) Cash flows from financing activities
(c) Cash flows from operating activities
(d) Cash and cash equivalents

(c) Cash flows from operating activities


Q20. Which of the following transaction is always shown under financing activities?

(a) Interest received on investments
(b) Interest paid on investments
(c) Dividend paid
(d) Dividend received

(c) Dividend paid


Q21. Investments made by a financial enterprise with the purpose to resell after the expiry of three months will come under which of the following activity?

(a) Investment
(b) Financing
(c) Operating
(d) Cash equivalents

(c) Operating

Accountancy MCQs for Class 12 Chapter Wise with Answers Pdf Download

MCQs for Class 12 Accountancy Chapter 1 Accounting for Partnership Firms — Fundamentals
MCQs for Class 12 Accountancy Chapter 2 Change in Profit Sharing Ratio among the Existing Partners
MCQs for Class 12 Accountancy Chapter 3 Admission of a Partner
MCQs for Class 12 Accountancy Chapter 4 Retirement or Death of a Partner
MCQs for Class 12 Accountancy Chapter 5 Dissolution of a Partnership Firm
MCQs for Class 12 Accountancy Chapter 6 Financial Statements of Not-for-Profit Organisations (N.P.O.)
MCQs for Class 12 Accountancy Chapter 7 Issue of Shares
MCQs for Class 12 Accountancy Chapter 8 Issue of Debentures
MCQs for Class 12 Accountancy Chapter 9 Redemption of Debentures
MCQs for Class 12 Accountancy Chapter 10 Financial Statements of Companies
MCQs for Class 12 Accountancy Chapter 11 Financial Statements Analysis
MCQs for Class 12 Accountancy Chapter 12 Comparative Statements
MCQs for Class 12 Accountancy Chapter 13 Common Size Statements
MCQs for Class 12 Accountancy Chapter 14 Accounting Ratios
MCQs for Class 12 Accountancy Chapter 15 Cash Flow Statement

Accountancy MCQs for Class 12 Chapter Wise with Answers Pdf Free Download will help you. Accountancy MCQs for Class 12 with Answers Chapter 15 Cash Flow Statement with Answer