Jagran Josh
MCQs for CBSE Class 12 Accountancy Chapter 10, Cash Flow Statement are available here for free PDF download. Also, find links of some important resources for preparation of upcoming CBSE Board Examinations (2023-2024)
MCQs for CBSE Class 12 Accountancy Chapter 10: In this article, Jagran Josh has brought to you list of some important MCQ-type-questions for CBSE Class 12 Accountancy Chapter 10, Cash Flow Statement. This list has been prepared by subject experts on the basis of Revised CBSE Syllabus(2023-2024) and latest CBSE Sample Paper 2024. Links for both of the above mentioned updates have been shared below for your reference.
Practise of such MCQ-type-questions can not only help you score good marks in academics, but can also assist you in preparing well for Competitive Examinations. CBSE in its recent updates has included MCQs as an important part of the question paper. Therefore, it is advised to practise MCQs consistently, to score high grades in upcoming CBSE Board Examinations (2023-24).
Related:
CBSE Class 12 Accountancy Syllabus 2023-24 (PDF)
CBSE Class 12 Accountancy Sample Paper 2023-24 (PDF)
Important MCQs for CBSE Class 12 Accountancy Chapter 10 are as follows:
1.Which of the following statements is/are correct?
(a) Dividend paid is always shown as operating activity.
(b)Depreciation and amortization, being non-cash expenses, are deducted from net profit before tax and extraordinary items.
(c) Both (a) and (b)
(d) None of these
Answer. d) None of these
2.Which of the following is not a part of cash and cash equivalents?
a) Inventory
b) Current investment
c) Short term deposit
d) Marketable security
Answer. a) Inventory
3.All of the following would be included in company`s Operating Activities except
a) Income tax payment
b) Collections from customer
c) Cash payment to suppliers
d) Interest on Current Investment
Answer. d) Interest on Current Investment
4.Assertion (A): Depreciation is added back to net profit while calculating cash flows from operating activities
Reason (R): Depreciation is a noncash expense. It had reduced the net profit while there is no cash flow
a) Both assertion and reason are true. Reason is a correct explanation of assertion.
b) Both assertion and reason are true but reason is not the correct explanation of assertion
c) Both assertion and reason are false
d) Assertion is true but Reason is false
Answer. a) Both Assertion and Reason are true. Reason is a correct explanation of assertion.
5.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)
Answer: (d) Both (a) and (b)
6.Interest received in cash on loans and advances results in cash inflow from ………… activity
(a)Financing
(b)Investing
(c)Operating
(d)None of the above
Answer. b) Investing
7.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
Answer: (c) Cash receipts from issue of shares
8.Statement -1: Rent paid ‘will be classified under operating activity while preparing cash flow statement
Statement -II: Interest received in cash on loans and advances results in cash flow from financing activities
(a) Both the statements are true
(b) Both the statements are false
(c) Statement -1 is true, statement-II is false
(d) Statement-II is true statement-1 is false
Answer. a) Both the statements are true
9.Which of the following item is not considered as cash equivalents ?
(a) Bank Overdraft
(b) Commercial Papers
(c) Treasury Bills
(d) Investment
Answer: (d) Investment
10.Cash Flow Statement is prepared from:
(a) Balance Sheet
(b) Profit & Loss Account
(c) Additional Information
(d) All of these
Answer: (d) All of these
11.Which one of following is not a non-cash item ?
(a) Cash Sales
(b) Goodwill written off
(c) Depreciation
(d) Provision of Bad Debts
Answer: (a) Cash Sales
12.Redemption of Debentures/Preference shares results into:
(a) Source of fund
(b) Use Or application of fund
(c) No flow of fund
(d) No flow of cash
Answer: (b) Use Or application of fund
13.Which calculating cash flow from operating activities which is added net profit ?
(a) Increase in Stock
(b) Decrease in Stock
(c) Increase in Debtors
(d) Decrease in Creditors
Answer: (b) Decrease in Stock
14.Cash Flow Statement is related to:
(a) AS-3
(b) AS-6
(c) AS-9
(d) AS-12
Answer: (b) AS-6
15.Following Is included in Cash Flow from Operating Activities:
(a) Royalties, Fees, Commission
(b) Purchase of Debentures
(c) Purchase of Machinery
(d) issue of Shares
Answer: (a) Royalties, Fees, Commission
To download MCQs for Class 12 Accountancy Chapter 10, click on the link below.
Important resources for CBSE Board Examination(2023-2024)
CBSE Class 12 Syllabus 2023-24 (All Subjects)
CBSE Class 12 Sample Papers 2023-24 (All Subjects)
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