{"id":18778,"date":"2022-05-28T06:30:08","date_gmt":"2022-05-28T01:00:08","guid":{"rendered":"https:\/\/mcq-questions.com\/?p=18778"},"modified":"2022-05-18T16:07:33","modified_gmt":"2022-05-18T10:37:33","slug":"mcq-questions-for-class-12-accountancy-chapter-11","status":"publish","type":"post","link":"https:\/\/mcq-questions.com\/mcq-questions-for-class-12-accountancy-chapter-11\/","title":{"rendered":"MCQ Questions for Class 12 Accountancy Chapter 11 Cash Flow Statement with Answers"},"content":{"rendered":"

Students who are searching for NCERT MCQ Questions for Chapter 11 Cash Flow Statement with Answers Pdf free download are compiled here to get good practice on all fundamentals. Know your preparation level on MCQ Questions for Class 12 Accountancy with Answers<\/a>. You can also verify your answers from our provided Cash Flow Statement Class 12 MCQs Questions with Answers. So, ace up your preparation with MCQ on Cash Flow Statement Class 12 Objective Questions.<\/p>\n

Cash Flow Statement Class 12 MCQs Questions with Answers<\/h2>\n

Multiple Choice Questions (MCQs):<\/span><\/p>\n

Question 1.
\nWhile preparing Cash Flow Statement, match the following activities: (CBSE SP 2019-20)
\nI. Payment of cash to acquire Debenture by (a). Financing activity an Investing Company
\nII. Purchase of Goodwill (b). Investing Activity
\nIII. Dividend paid by manufacturing company (c). Operating activity<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: I – c, II – b, III – a.<\/p>\n<\/details>\n

\n

Question 2.
\nWhich of the following is the source of cash?
\n(a) Cash deposited into bank
\n(b) Cash withdrawn from the bank
\n(c) Sale of marketable securities
\n(d) Sale of goods for cash costing \u20b9 20,000 for \u20b9 16,000.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (d) Sale of goods for cash costing \u20b9 20,000 for \u20b9 16,000.<\/p>\n<\/details>\n

\n

Question 3.
\nWhile calculating cash flows from operating profit, which of the following is not considered in the net profit?
\n(\u0430) Amortisation of goodwill
\n(b) Writing off bad debts
\n(c) Writing off depreciation
\n(d) Interest paid on bank overdraft<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (b) Writing off bad debts<\/p>\n<\/details>\n

\n

Question 4.
\nWhich of the following statement is incorrect about cash flow statement?
\n(a) It provides information about cash inflows and cash outflows .
\n(b) It provides information of flows of cash under three major categories
\n(c) It reconciles bank balance with the bank balance as per bank statement
\n(d) It helps in preparing cash budget<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (c) It reconciles bank balance with the bank balance as per bank statement<\/p>\n<\/details>\n

\n

Question 5.
\nWhich of the following will come under operating activity?
\n(a) Issue of shares for cash
\n(b) Interest received on short-term investments
\n(c) Trading commission received by a manufacturing company
\n(d) Sale of marketable securities<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (c) Trading commission received by a manufacturing company<\/p>\n<\/details>\n

\n

Question 6.
\nWhich of the following will not come under anywhere in cash flow statement?
\n(a) Repayment of borrowings
\n(b) Issue of bonus shares
\n(c) Sale of investments
\n(d) Dividend paid<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (b) Issue of bonus shares<\/p>\n<\/details>\n

\n

Question 7.
\nA plant whose original cost was \u20b9 40,000, accumulated depreciation provided till the date of sale was \u20b9 15,000 was sold at 20% above the book value. Cash flow from operating activities will be
\n(a) \u20b9 48,000
\n(b) \u20b9 30,000
\n(c) \u20b9 18,000
\n(d) \u20b9 25,000<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (b) \u20b9 30,000<\/p>\n<\/details>\n

\n

Question 8.
\nWhere will you show sale and purchase of shares and securities if it relates to revenue generating activity?
\n(a) Cash flow from investment activities
\n(b) Cash flows from financing activities
\n(c) Cash flows from operating activities
\n(d) Cash and cash equivalents<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (c) Cash flows from operating activities<\/p>\n<\/details>\n

\n

Question 9.
\nWhich of the following transaction is always shown under financing activities?
\n(a) Interest received on investments
\n(b) Interest paid on investments
\n(c) Dividend paid
\n(d) Dividend received<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (c) Dividend paid<\/p>\n<\/details>\n

\n

Question 10.
\nInvestments made by a financial enterprise with the purpose to resell after the expiry of three months will come under which of the following activity?
\n(a) Investment
\n(b) Financing
\n(c) Operating
\n(d) Cash equivalents<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (c) Operating<\/p>\n<\/details>\n

\n

Question 11.
\nInvestments made with the purpose to resell after the expiry of three months will come under which of the following activity?
\n(a) Investment
\n(b) Financing
\n(c) Operating
\n(d) Cash equivalents<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (d) Cash equivalents<\/p>\n<\/details>\n

\n

Question 12.
\nKaveri Ltd. A financing company obtained loans and advances of \u20b9 5.00,000 during the year @ 12% p.a. it will be included in which of the following activities while preparing the cash flow statement? (CBSE Compartment Delhi 2015)
\n(a) Investing Activities
\n(b) Financing Activities
\n(c) Both Investing and Financing Activities
\n(d) Operating Activities<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (d) Operating Activities<\/p>\n<\/details>\n

\n

Question 13.
\nCash deposit with the bank with a maturity date after two months belongs to which of the following while preparing cash flow statement: (CBSE Sample Paper 2015)
\n(a) Investing Activities
\n(b) Financing Activities
\n(c) Cash and Cash Equivalents
\n(d) Operating Activities<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (c) Cash and Cash Equivalents<\/p>\n<\/details>\n

\n

Question 14.
\nWhich of the following transactions will not result into flow of cash? (CBSE Delhi 2014)
\n(a) Issue of equity shares of \u20b9 1,00,000.
\n(b) Purchase of machinery of \u20b9 1,75,000
\n(c) Redemption of 9% debentures \u20b9 3,50,000
\n(d) Cash deposited into bank \u20b9 15,000<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (d) Cash deposited into bank \u20b9 15,000<\/p>\n<\/details>\n

\n

State whether the following statements are true or false:<\/span><\/p>\n

Question 15.
\n\u2018Patents purchased by a company will be an operating activity.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: False<\/p>\n<\/details>\n

\n

Question 16.
\nCash Flow Statement helps in reconciling closing bank balance with the balance as per bank statement.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: False<\/p>\n<\/details>\n

\n

Question 17.
\nReceipt of dividend on investment is always inflow of cash under investing activities for all types of companies.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: False<\/p>\n<\/details>\n

\n

Question 18.
\nCash flow statement is different from cash book.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: True<\/p>\n<\/details>\n

\n

Question 19.
\nTax on capital gains due to sale of non-current assets are shown under investing activities.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: True<\/p>\n<\/details>\n

\n

Question 20.
\nIncrease or decrease in bank overdraft and cash credit is shown under financing activities.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: True<\/p>\n<\/details>\n

\n

Question 21.
\nRent received form immovable property held as investments is shown under operating activities<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: False<\/p>\n<\/details>\n

\n

Question 22.
\nLoans and advances granted is an operating activity for a financial enterprise.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: True<\/p>\n<\/details>\n

\n

Question 23.
\nSale and purchase of marketable securities do not involve any flow of cash.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: True<\/p>\n<\/details>\n

\n

Question 24.
\nAmortisation of intangible asset is a non-cash and non-operating item.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: True<\/p>\n<\/details>\n

\n

Question 25.
\nRental Income on the property held as stock is shown under operating activities for a non manufacturing enterprise.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: True<\/p>\n<\/details>\n

\n

Fill in the blanks with correct word:<\/span><\/p>\n

Question 26.
\nMarketable Securities is the part of _______.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Cash and Cash Equivalents<\/p>\n<\/details>\n

\n

Question 27.
\nShort term borrowings comes under _______.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Financing Activities<\/p>\n<\/details>\n

\n

Question 28.
\nThe cash flow statement explains the causes of ________ of cash.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Surplus \/ Deficit<\/p>\n<\/details>\n

\n

Question 29.
\nIssue of shares on redemption of debentures will result into _______ of cash.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Noflow<\/p>\n<\/details>\n

\n

Question 30.
\nPayment of dividend always come under _____ for all enterprises.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Financing<\/p>\n<\/details>\n

\n

Question 31.
\nSale and purchase of shares and securities come under _____ activities for financial enterprises.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Operating<\/p>\n<\/details>\n

\n

Question 32.
\nProceeds of insurance claims under norming business operations is known as _______.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Extraordinary Item<\/p>\n<\/details>\n

\n

Question 33.
\n_______ dividend is declared and paid during the year.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Interim<\/p>\n<\/details>\n

\n

Question 34.
\nCheques and drafts are the part of cash ________.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Equivalents<\/p>\n<\/details>\n

\n

Question 35.
\nTax of dividend on shares is the part of _______ activity.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Financing.<\/p>\n<\/details>\n

\n

One word Questions:<\/span><\/p>\n

Question 36.
\nMevo Ltd., a financial enterprise had advanced a loan of \u20b9 3,00,000, invested \u20b9 6,00,000 in shares of the other companies and purchased machinery for \u20b9 9,00,000. It received dividend of \u20b9 70,000 on investment in shares. The company sold an old machine of the book value of \u20b9 79,000 at a loss of \u20b9 10,000.
\nCompute Cash flows from Investing Activities. (CBSE Delhi 2019)<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer:
\n\"MCQ
\nNote: As it is clearly mentioned that shares are purchased for investment. They have been treated as investing
\nactivities.<\/p>\n<\/details>\n

\n

Question 37.
\nGive the meaning of \u2018Cash Equivalents\u2019 for the purpose of preparing Cash Flow Statement. (CBSE Delhi 2019)<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: \u201cCast equivalents\u201d means short term highly liquid investments that are readily convertible into known amount of cash & which are subject to an in significant risk of changes in value.
\nFor Ex-short term marketable securities.
\nThe primary purpose of the statement of cash flows is to provide information about cash receipt, cash payments, and the net change in cash resulting from the operating, investing and financing activities of a company during the period.<\/p>\n<\/details>\n

\n

Question 38.
\nWhat is meant by \u2018Cash Flows? (CBSE Delhi 2019)<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Cash Flows imply movement of cash in and out due to some non-cash items.<\/p>\n<\/details>\n

\n

Question 39.
\nK Ltd., a manufacturing company obtained a loan of \u20b9 6,00,000, advanced a loan of \u20b9 1,00,000 and purchased machinery for \u20b9 5,00,000. Calculate the amount of Cash Flow from financing and investing activities.
\nAns.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer:
\n\"MCQ<\/p>\n<\/details>\n

\n

Question 40.
\nHow will \u2018commission received\u2019 be treated while preparing cash-flow-statement? (CBSE Delhi 2019)<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: It will be treated as Cash flows from operating activities.<\/p>\n<\/details>\n

\n

Question 41.
\nHow is \u2018dividend paid\u2019 treated by a financial enterprise for the purpose of preparing cash flow statement?<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Dividend paid is treated as a financing activity.<\/p>\n<\/details>\n

\n

Question 42.
\nWhen can \u2018Receipt of Dividend\u2019 be classified as an operating activity State. Also give reason in support of your answer. (CBSE Delhi 2019)<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Receipt of dividend can be an operating activity for a financial company as it is a principal revenue generating activity.<\/p>\n<\/details>\n

\n

Question 43.
\nWhat is meant by \u2018Cash Flow Statement\u2019? (CBSE Outside Delhi 2019)<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: A Cash Flow Statement is a statement that provides information about the historical changes in Cash & Cash Equivalents of an enterprise by classifying cash flows into Operating, Investing and Financing Activities.<\/p>\n<\/details>\n

\n

Question 44.
\nWhat is meant by \u2018Cash Flows\u2019? (CBSE Outside Delhi 2019)<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Cash Flows imply movement of cash in and out due to some non-cash items.<\/p>\n<\/details>\n

\n

Question 45.
\nK Ltd., a manufacturing company obtained a loan of \u20b9 6,00,000, advanced a loan of \u20b9 1,00,000 and purchased machinery for \u20b9 5,00,000. Calculate the amount of Cash Flow from financing and investing activities.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer:
\n\"MCQ<\/p>\n<\/details>\n

\n

Question 46.
\nHow will \u2018commission received\u2019 be treated while preparing a cash-flow-statement? (CBSE Outside Delhi 2019)<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: It will be treated as Cash flows from operating activities.<\/p>\n<\/details>\n

\n

Question 47.
\nHow is \u2018dividend paid\u2019 treated by a financial enterprise for the purpose of preparing cash flow statement? (CBSE Outside Delhi 2019)<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Dividend paid is treated as a financing activity.<\/p>\n<\/details>\n

\n

Question 48.
\nM\/s Mevo and Sons.; a bamboo pens producing company, purchased a machinery for \u20b9 9,00,000.
\nIt received dividend of \u20b9 70,000 on investment in shares. The company also sold an old machine of the book value of \u20b9 79,000 at a loss of \u20b9 10,000. Compute Cash flow from Investing Activities (CBSE SP 2019-20)
\nAns. Cash flow from Investing Activities<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer:
\n\"MCQ<\/p>\n<\/details>\n

\n

Question 49.
\nGive any two examples of cash flows from operating activities.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer:
\n(i) Cash Sales
\n(ii) Cash Purchases<\/p>\n<\/details>\n

\n

Question 50.
\nWhat is meant by \u2018Financing Activities\u2019 for preparing Cash Flow Statement? (CBSE 2019 Compt.)<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Financing activities are the activities that result in change in capital or borrowings of the enterprise.<\/p>\n<\/details>\n

\n

Question 51.
\nWhat is mean by investing activities for preparing Cash Flow Statement? (CBSE 2019 Compt.)<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Investing activities (as per AS-3) are the acquisition and disposal of long term assets and other investments not included in cash equivalents.<\/p>\n<\/details>\n

\n

Question 52.
\nState the primary objective of preparing Cash Flow Statement. (CBSE 2019 Compt.)<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: The primary objective of preparing Cash Flow Statement is to provide useful information about cash inflows and outflows of an enterprise during a particular period.<\/p>\n<\/details>\n

\n

Question 53.
\nWhat is meant by\u2018Cash Flow Statement\u2019? (CBSE 2019 Compt.)<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Cash Flow Statement is a statement showing inflows and outflows of cash and cash equivalents during a particular period.<\/p>\n<\/details>\n

\n

Question 54.
\nCashier of Y Ltd. withdrew \u20b9 2,00,000 from bank. Will this transaction result into inflow, outflow or no flow of cash? Give reason in support of your answer. (CBSE 2019 Compt.)<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: No flow of cash as there is no change in cash and cash equivalents.<\/p>\n<\/details>\n

\n

Question 55.
\nInterest received and paid is considered as which type of activity by a finance company while preparing the cash flow statement. (CBSE 2018)<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Operating Activity for both.<\/p>\n<\/details>\n

\n

Question 56.
\nUnder which type of activity will you classify \u2018Rent received\u2019 while preparing cash flow statement? (CBSE Sample Paper 2018-19)<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Rent received is inflow of cash from Investing Activities.<\/p>\n<\/details>\n

\n

Question 57.
\nGive any one example of cash inflows from operating activities other than cash receipts from sale of goods and rendering of services.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Royalties<\/p>\n<\/details>\n

\n

Question 58.
\nP P Limited is Share Broker Company. G G Limited is engaged in manufacturing of packaged food. P P Limited purchased 5,000 equity shares of \u20b9 100 each of Savita Limited. G G Limited also purchased 10,000 equity shares of \u20b9 100 each of Savita Limited.
\nFor the purpose of preparing their respective Cash Flow Statements, under which category of activities the purchase of shares will be classified by P P Limited and G G Limited? (CBSE Sample Paper 2017-18)<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer:
\n(a) For P P Limited: Operating Activity
\n(b) For G G Limited: Investing Activity<\/p>\n<\/details>\n

\n

Question 59.
\nCash Flow Statement shows inflows and outflows of \u2018Cash\u2019 and \u2018Cash Equivalents\u2019 from various activities of an enterprise during a particular period. State one component of cash. (Compt. Delhi 2017)<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Demand deposits with bank.<\/p>\n<\/details>\n

\n

Question 60.
\nGive an example of an activity, which is a financing activity for every type of enterprise. (Compt. Delhi 2017)<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Issue of shares.<\/p>\n<\/details>\n

\n

Question 61.
\nNet increase in working capital other than cash and cash equivalents will increase, decrease or not change cash flow from operating activities. Give reason in support ofyour answer. (Delhi 2017)<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Decrease.<\/p>\n<\/details>\n

\n

Question 62.
\n\u2018Payment and Receipt of interest and dividend\u2019 is classified as which type of activity while preparing cash flow statement? (Delhi 2017)<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Payment of Interest and Dividend: Financing Activity Receipt of Interest and Dividend: Investing Activity<\/p>\n<\/details>\n

\n

Question 63.
\n\u2018Cheques and drafts in hand\u2019 are not considered while preparing cash flow statement. Why? (Delhi 2017)<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Cheques and Drafts in hand are not considered while preparing cash flow statements as they are part of cash and cash equivalents only.<\/p>\n<\/details>\n

\n

Question 64.
\nState any one advantage of preparing cash flow statement. (Delhi 2017)<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: It helps in short term financial planning.<\/p>\n<\/details>\n

\n

Question 65.
\nNormally, what should be the maturity period for a short-term investment from the date of its acquisition to be qualified as cash equivalents? (Outside Delhi 2017)<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: 90 days\/ 3 months.<\/p>\n<\/details>\n

\n

Question 66.
\nState whether the following will increase, decrease or have no effect on cash flow from operating activities while preparing \u2018Cash Flow Statement\u2019 :
\n(i) Decrease in outstanding employees benefits expenses by \u20b9 3,000
\n(ii) Increase in prepaid insurance by \u20b9 2,000. (Compt. Delhi 2017)<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer:
\n(i) Decrease
\n(ii) Decrease<\/p>\n<\/details>\n

\n

Question 67.
\nWill \u2018acquisition of machinery by issue of equity shares\u2019 be considered while preparing \u2018Cash Flow Statement\u2019?<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: No.<\/p>\n<\/details>\n

\n

Question 68.
\nThe Goodwill of X Ltd. increased from \u20b9 2,00,000 in 2013-14 to \u20b9 3,50,000 in 2014-15. Where will you show the treatment while preparing Cash Flow Statement for the year ended 31st March 2015? (CBSE Sample Paper 2016, 2017)<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Investing Activities.<\/p>\n<\/details>\n

\n

Question 69.
\nDoes movement between items that constitute cash or cash equivalents result into cash flow?<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: No flow of cash and cash equivalents.<\/p>\n<\/details>\n

\n

Question 70.
\n\u2018An enterprise may hold securities and loans for dealing or trading purposes in which case they are similar to inventory acquired specifically for resale.\u2019 Is the statement correct?<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Yes<\/p>\n<\/details>\n

\n

Question 71.
\n\u2018G Ltd.\u2019 is carrying on a paper manufacturing business. In the current year, it purchased machinery for
\n7 30,00,000, it paid salaries of \u20b9 60,000 to its employees; it required funds for expansion and therefore, issued shares of \u20b9 20,00,000. It earned a profit of \u20b9 9,00,000 for the current year. Find out cash flows from operating activities. (Delhi Compartment 2015)<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: \u20b9 9,00,000 (as per indirect method and other information is not relevant)<\/p>\n<\/details>\n

\n

Question 72.
\nFinserve Ltd. Is carrying on a mutual fund business. It invested \u20b9 30,00,000 in shares and \u20b9 15,00,000 in debentures of various companies during the year. It received \u20b9 3,00,000 as dividend and interest. Find out cash flows from investing activities. (CBSE Sample Paper 2015)<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Nil.<\/p>\n<\/details>\n

\n

Question 73.
\nState with reason whether the issue of 9 % debentures to a vendor for the purchaser of machinery of \u20b9 50,000 will result in inflow, outflow or no flow of cash while preparing cash flow statement. (CBSE Compartment Delhi 2014)<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: No flow of cash.<\/p>\n<\/details>\n

\n

Question 74.
\nInterest received by a finance company is classified under which kind of activity while preparing a cash flow statement. (CBSE Sample Paper 2014)<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Operating Activity.<\/p>\n<\/details>\n

\n

Question 75.
\nWhile preparing cash flow statement of Sharda Ltd. Depreciation provided on fixed asset was added to the net profit to calculate cash flow from operating activities. Was the accountant correct in doing so? Give reason. (CBSE Delhi 2014)<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Yes.<\/p>\n<\/details>\n

\n

Question 76.
\nWhile preparing the cash flow statement of Alka Ltd. Dividend paid was shown as an operating activity by the accountant of the company. Was he correct in doing so?<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: No.<\/p>\n<\/details>\n

\n

Question 77.
\nAsia Ltd. declared payment of dividend of\u20b9 50,000 on its equity shares. Mention with reason whether it is cash inflow, cash outflow or no cash flow.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: No cash flow.<\/p>\n<\/details>\n

\n

Question 78.
\nA company has issued bonus equity shares of \u20b9 2,00,000. Mention with reason whether it is cash inflow,
\ncash outflow or no cash.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: No cash flow.<\/p>\n<\/details>\n

\n

Question 79.
\nMention the case in which interest received (other than interest on calls in arrears) is treated as cash inflow from operating activities.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Cash inflow company.<\/p>\n<\/details>\n

\n

Question 80.
\nState with reason whether deposit of cash into bank will result into inflow, outflow or no flow cash. (CBSE 2011 Delhi)<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: No cash flow equivalents.<\/p>\n<\/details>\n

\n

Use the above-provided NCERT MCQ Questions for Class 12 Accountancy Chapter 11 Cash Flow Statement with Answers Pdf free download and get a good grip on the fundamentals. Need any support from our end during the preparation of CBSE Class 12 Accountancy Cash Flow Statement MCQs Multiple Choice Questions with Answers then leave your comments below. We’ll revert back to you soon.<\/p>\n","protected":false},"excerpt":{"rendered":"

Students who are searching for NCERT MCQ Questions for Chapter 11 Cash Flow Statement with Answers Pdf free download are compiled here to get good practice on all fundamentals. Know your preparation level on MCQ Questions for Class 12 Accountancy with Answers. You can also verify your answers from our provided Cash Flow Statement Class …<\/p>\n

MCQ Questions for Class 12 Accountancy Chapter 11 Cash Flow Statement with Answers<\/span> Read More »<\/a><\/p>\n","protected":false},"author":9,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"default","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"default","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","spay_email":""},"categories":[35],"tags":[],"yoast_head":"\nMCQ Questions for Class 12 Accountancy Chapter 11 Cash Flow Statement with Answers - MCQ Questions<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/mcq-questions.com\/mcq-questions-for-class-12-accountancy-chapter-11\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"MCQ Questions for Class 12 Accountancy Chapter 11 Cash Flow Statement with Answers - MCQ Questions\" \/>\n<meta property=\"og:description\" content=\"Students who are searching for NCERT MCQ Questions for Chapter 11 Cash Flow Statement with Answers Pdf free download are compiled here to get good practice on all fundamentals. 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