MCQ Chapter 6 Cash Flow Statement Class 12 Accountancy

Please refer to Cash Flow Statement MCQ Questions Class 12 Accountancy below. These MCQ questions for Class 12 Accountancy with answers have been designed as per the latest NCERT, CBSE books and syllabus issued for the current academic year. These objective questions for Cash Flow Statement will help you to prepare for the exams and get more marks.

Cash Flow Statement MCQ Questions Class 12 Accountancy

Please see solved MCQ Questions for Cash Flow Statement in Class 12 Accountancy. All questions and answers have been prepared by expert faculty of standard 12 based on latest examination guidelines.

MCQ Questions Class 12 Accountancy Cash Flow Statement

Question. Which of the following is not a cash inflow?
a) Decrease in debtors
b) Issues of shares
c) Decrease in creditors
d) Sale of fixed assets

Question.  Which of the following will be added to Net Profit before Tax.
a) Provision for Taxation.
b) Depreciation
c) Decrease interest.
d) None of the above.

Question. On 1stOctober, 2018 10% Debentures of Rs. 1,00,000 were issued. Interest on Debenture paid by company for year ended 31stMarch, 2019 is
a) Rs. 10,000
b) Rs. 15,000
c) Rs. 5,000
d) Rs. 2,500

Question. In case of financial enterprises cash flow from interest and dividend received and interest
paid is classified as cash flow from.
a) Operating Activity
b) Investing Activity
c) Finances Activity
d) Cash and Cash Equivalents.

Question.Investment costing Rs. 10,000 sold for Rs. 12,000. The amount shown in investing activity is
a) Rs. 2,000
b) Rs. 10,000
c) Rs. 12,000
d) Rs. 2,200

Question. On 1stJanuary, 2018 company issued shares of Rs.10,00,000 and paid Rs. 10,000 as Share Issue Expense. Amount shown in Financing Activities
a) Rs. 10,00,000 as Inflow and Rs. 10,000 as Outflow.
b) Rs. 9,90,000as Inflow.
c) Rs. 10,10,000 as Inflow.
d) Rs. 10,00,000 as Inflow from Shares and Rs. 10,000 as Inflow for Share Issue Expenses.

Question. A company which issued bonds to raise funds which
a) Increases liability
b) Increases equity
c) Increases assets
d) Decreases cash

Question.Which of the following is not Cash or Cash Equivalents
a) Cash in hand
b) Demand Deposit
c) Bank Borrowings
d) Investment which is maturing within2 months from the date of acquisition

Question.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

Question.Increase in Bank Overdraft is
a) Investing Activity
b) Financing Activity
c) Operating Activity
d) Cash and Cash Equivalents

Question. Which of the following items is not a Non-cash items
a) Depreciation Expense
b) Amortization Expense
c) Result of Provision
d) Income tax Payment

Question. of the following items would be subtracted from net income when using indirect method for operating activity.
a) Depreciation Expense
b) Repayment of Bonds Payable
c) Gain on Sale of Land
d) Loss on Sale of Equipment.

Question .Interest received on investment by a financing company is shown under:
a) Operating Activity
b) Investing Activity
c) Financing Activity
d) Cash and Cash Equivalents

Question Proceeds from raising bank loan is shown as
a) Investing Activity
b) Financing Activity
c) Operating Activity
d) Cash and Cash Equivalents.

Question. Sale of current investment will be shown under
a)Operating Activity
b)Financing Activity
c)Investing Activity
d)Cash and Cash Equivalents

Question. Interest paid on investment is shown under
a)Operating Activity
Page 141 of 146
b)Financing Activity
c)Investing Activity
d)Cash and Cash Equivalents

Question. Issue of Debentures for consideration other than cash is shown as
a)Inflow of Cash under Financing Activities
b)Outflow of Cash under Financing Activities
c)Neither Inflow nor Outflow of Cash
d) Inflow of Cash under Operating Activities.

Question. Issue of shares at a premium is shown as:
a) Inflow under Operating Activities.
b) Inflow under Financing Activities.
c) Inflow under Investing activity
d) Outflow under Financing Activities.

Question.  of Plant and Machinery of Book Value of Rs. 5,00,000 at a loss of 5%. Inflow under Investing Activities will be
a)Rs. 4,75,000
b) Rs. 5,00,000
c) Rs. 3,80,000
d) Rs. 3,60,000

Question. Dividend paid by a financing company is shown under :
a)Operating Activity
b)Investing Activity
c)Financing Activity
d)Cash and Cash Equivalents

Question. of shares for consideration other than cash is
a) Shown under Operating Activity
b) Shown under Financing Activity
c) Shown under Investing Activity
d) not shown in Cash Flow Statement.

QuestionDividend paid by non financing company is shown under:
a) Operating activity
b) Investing activity
c) Financing activity
d) Cash and cash equivalents.

Question. An increase in Outstanding Salaries as compared to previous year’s outstanding salaries are added under __________________ in Cash Flow Statement.

Question. Interest on Debentures paid is added in ________ in Cash Flow from Operating

Question6. Deprecation is added back to the net profit to determine Net Profit before Tax and Extraordinary Activity because it is a ____ item.

Question. The statement that gives information about the historical changes in cash and cash
equivalents is called ________________

Question. The _____________ of enterprise is principal revenue producing activity.

Question. Activity because it is a ________________ item.(Non – Cash Item)

Question. Operating Activities are the principal revenue producing activities of an enterprise and those activities which are not ______________ or _____________.

Question. Receipts from Dividend is shown as ___________ activity in Cash Flow Statement.Investing

Question. The amount of Cash received from debtor is shown in ____________ activity of the company. 

Question.Manufacturing expenses paid are classified into _________ activity

Question. ( A&E) Net Profit before tax is Rs. 3530. Trade Receivables are Rs. 1,200 (as on 1st April, 2018) and Rs. 1,700 (as on 31stMarch, 2019).Cash Flow after Working Capital Changes will be____________.

Question. Redemption of Debentures by converting them into equity shares would result in flow cash.

Question.Cash in hand and cash at bank will affect Cash Flow from Operating Activities. 

Question. case of financial enterprises interest paid and interest recd will be treated as cash flow from operating activities. 

Question.Dividend of Previous Year is added to net profit to calculate Net Profit before Tax and
Extraordinary Activities. 

Question. Decrease in Trade Payables is deducted to calculate Cash Flow from Operating Activities under Change in Working Capital. 

Question. paid on Long Term Borrowings is added back to Net Profit Before Tax and Extraordinary Activities because it is an expense relating to Financing Activities.

Question. Refund of tax is deducted from Net Profit before Tax and Extraordinary Activities. 

Question.  Rent received is operating activity by manufacturing concern.

Question.                                 ( 2018)                                        ( 2017)
Plant and Machinery            Rs. 8,00,000                                          Rs.  7,00,000
Accumulated depreciation Rs. – 1,20,000                                    Rs. -1,00,000
                                        Rs. 6,80,000                                      Rs. 6,00,000
Amount to be added to Net Profit before Tax and Extraordinary Items as Non – cash Expense
(Depreciation) is Rs. 20,000 

Question. Surplus i.e., Balance in Statement of Profit and Loss         2016         2017
(12,000) (14,000)
General Reserve        2,000         3,000