CBSE Class 12 Accountancy – MCQ and Online Tests – Unit 11 – Cash Flow Statement
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CBSE Class 12 Accountancy – MCQ and Online Tests – Unit 11 – Cash Flow Statement
Question 1.
If net profit is 7 50,000 after writing off goodwill 7 10,000 then the cash flow from operating activities will be:
(a) ₹ 60,000
(b) ₹ 40,000
(c) ₹ 50,000
(d) ₹ 30,000
Answer
Answer: (a) ₹ 60,000
Question 2.
Which of the following is an example of Cash Flow from Operating Activities ?
(a) Purchase of Machinery
(b) Issue of Shares
(c) Purchases of Inventory for Cash
(d) Purchases of Investment
Answer
Answer: (c) Purchases of Inventory for Cash
Question 3.
Cash sales in :
(a) Operating Activity
(b) Investing Activity
(c) Financing Activity
(d) None of these
Answer
Answer: (a) Operating Activity
Question 4.
Issue of shares in consideration of purchase of plant and machinery results into :
(a) Inflow of Cash
(b) Outflow of Cash
(c) Neither Inflow nor Outflow
(d) None of these
Answer
Answer: (c) Neither Inflow nor Outflow
Question 5.
Decrease in Current Asset is……….in operating profit
(a) Subtracted
(b) Added
(c) Divided
(d) Multiplied
Answer
Answer: (b) Added
Question 6.
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
Answer: (d) Both (a) and (b)
Question 7.
While calculating operating profit which will be added to net profit:
(a) Interest received
(b) Profit on sale of Asset
(c) Increase in General Reserve
(d) Refund of Tax
Answer
Answer: (c) Increase in General Reserve
Question 8.
Preparation of cash flow statement is :
(a) Mendatory
(b) Recommendatory
(c) Required under the Companies Act
(d) None of these
Answer
Answer: (a) Mendatory
Question 9.
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
Answer
Answer: (b) Increase in Debtors
Question 10.
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
Answer
Answer: (b) Increase in Creditors
Question 11.
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
Answer: (c) Cash receipts from issue of shares
Question 12.
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
Answer
Answer: (c) Cash Flow from Financing Activities
Question 13.
Cash payment to employees is a Cash Flow from:
(a) Operating Activities
(b) Investing Activities
(c) Finance Activities
(d) All the above
Answer
Answer: (a) Operating Activities
Question 14.
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
Answer
Answer: (b) Cash Flow from Investing Activities
Question 15.
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
Answer
Answer: (c) Payment of cash for purchase of machinery
Question 16.
Interest received by a finance company is classified under which kind of activity while preparing a Cash Flow Statement ?
(a) Cash Flow from Operating Activities
(b) Investing Activities
(c) Financing Activities
(d) Cash Equivalent
Answer
Answer: (a) Cash Flow from Operating Activities
Question 17.
Which of the following item is not considered as cash equivalents ?
(a) Bank Overdraft
(b) Commercial Papers
(c) Treasury Bills
(d) Investment
Answer
Answer: (d) Investment
Question 18.
Which of the following is not a Cash in Flow ?
(a) Sale of Fixed Asset
(b) Purchase of Fixed Asset
(c) Issue of Debentures
(d) Sale of Goods for Cash
Answer
Answer: (b) Purchase of Fixed Asset
Question 19.
In cash flow statement, the item of ‘Interest’ is shown in:
(a) Operating Activities
(b) Investing Activities
(c) Financial Activities
(d) In both (d) & (c)
Answer
Answer: (d) In both (d) & (c)
Question 20.
Which of the following is not a Cash Outflow:
(a) Increase in Creditors
(b) Increase in Debtors
(c) Increase in Stock
(d) Increase in prepaid expenses
Answer
Answer: (a) Increase in Creditors
Question 21.
If net profit is ₹ 35,000 after writing off good will ₹ 6,000 and loss on sale of furniture ₹ 1,000, cash flow from operating activities will be :
(a) ₹ 35,000
(b) ₹ 42,000
(c) ₹ 29,000
(d) ₹ 28,000
Answer
Answer: (b) ₹ 42,000
Question 22.
Income tax refund is a cash of:
(a) Source
(b) Application
(c) Both (a) & (b)
(d) None of these
Answer
Answer: (a) Source
Question 23.
Cash Flow Statement is prepared from:
(a) Balance Sheet
(b) Profit & Loss Account
(c) Additional Information
(d) All of these
Answer
Answer: (d) All of these
Question 24.
Cash Flow Statement in based upon:
(a) Cash basis of accounting
(b) Accrual basis of accounting
(c) (a) and (b) both
(d) None of these
Answer
Answer: (a) Cash basis of accounting
Question 25.
Which of the following is not a cash inflow ?
(a) Decrease in Debtors
(b) Issue of Debentures
(c) Decrease in Creditors
(d) None of these
Answer
Answer: (c) Decrease in Creditors
Question 26.
Cash from operation is equal to :
(a) Net Profit + Increase in Current Assets
(b) Net Profit + Decrease in Current Liabilities
(c) Operating Profit + Adjustment of Current Assets and Current Liabilities
(d) All of the above
Answer
Answer: (b) Net Profit + Decrease in Current Liabilities
Question 27.
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
Answer: (a) Royalties, Fees, Commission
Question 28.
Cash Flow Statement is related to:
(a) AS-3
(b) AS-6
(c) AS-9
(d) AS-12
Answer
Answer: (b) AS-6
Question 29.
Which of the following item is considered as cash equivalents:
(a) Bank Overdraft
(b) Bills Receivable
(c) Debtors
(d) Short-term Investment
Answer
Answer: (a) Bank Overdraft
Question 30.
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
Answer: (b) Decrease in Stock
Question 31.
Following are included in cash equivalent:
(a) Treasury Bill
(b) Trade Bill
(c) Bank Deposits of Short Maturity Period
(d) All of above
Answer
Answer: (d) All of above
Question 32.
Which activity comes under ‘Operating Activities’ ?
(a) Purchase of Land
(b) Issue of Debentures
(c) Proceeds from Issuance of Equity Shares
(d) Cash Sales
Answer
Answer: (d) Cash Sales
Question 33.
While calculating profit from operating activities, which will be added back to net profit:
(a) Goodwill Written off
(b) Depreciation
(c) Loss oh Sale of Fixed Assets
(d) All the Above
Answer
Answer: (d) All the Above
Question 34.
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
Answer: (a) Cash Sales
Question 35.
Claims received from Insurance Companies are treated as:
(a) Cash Flow from Operating Activities
(b) Cash Flow from Investing Activities
(c) Cash Flow from Financing Activities
(d) None of these
Answer
Answer: (a) Cash Flow from Operating Activities
Question 36.
Cash flow statement according to AS-3 is mandatory to:
(a) All enterprises
(b) Companies listed on a stock exchange
(c) Enterprises having turnover expending 50 Rs crore
(d) (b) & (c) both
Answer
Answer: (d) (b) & (c) both
Question 37.
Following are true about cash equivalent:
(a) More Liquid Short-term Investment
(b) Minimum risk
(c) Maturity of 3 months or less than 3 months
(d) All the above
Answer
Answer: (d) All the above
Question 38.
Which of the following is not the source of Cash ?
(a) Purchase of Fixed Assets
(b) Funds from Operations
(c) Issue of Debentures
(d) Sale of Fixed Assets
Answer
Answer: (a) Purchase of Fixed Assets
Question 39.
Which of the following activity comes under Financial Activities ?
(a) Receipts from issurence of Equity Shares
(b) Cash Sales
(c) Bank Overdraft
(d) Purchase of Debentures
Answer
Answer: (a) Receipts from issurence of Equity Shares
Question 40.
An analysis of cash flow is useful for..—.planning.
(a) Short-term
(b) Long-term
(c) Medium-term
(d) Very Long-period
Answer
Answer: (a) Short-term
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