MCQs For NCERT Class 12 Accountancy Chapter 6 Cash Flow Statement

MCQs Class 12

Please refer to the MCQ Questions for Class 12 Accountancy Chapter 6 Cash Flow Statement with Answers. The following Cash Flow Statement Class 12 Accountancy MCQ Questions has been designed based on the latest syllabus and examination pattern for Class 12. Our experts have designed MCQ Questions for Class 12 Accountancy with Answers for all chapters in your NCERT Class 12 Accountancy book.

Cash Flow Statement Class 12 MCQ Questions with Answers

See below Cash Flow Statement Class 12 Accountancy MCQ Questions, solve the questions and compare your answers with the solutions provided below.

Question. From the following information, the outflow of cash for the purchase of machinery will be:   
Written down value of machinery as on 1.4.2011 –  Rs 5,00,000
Written down value of machinery as on 31.3.2012 -Rs7,00,000
Depreciation on machinery charged during the year Rs 60,000
Machinery having book value Rs 25,000 sold for Rs 20,000
(a)  Rs 2,70,000
(b)  Rs 2,80,000 
(c)  Rs 2,75,000
(d)  Rs 2,85,000 

Answer

D

Question. From the following information find the cash generated from operations:   
Operating Profit before working capital changes 1,00,000
Depreciation on fixed assets 15,000
Loss on sale of Furniture 5,000
Interest paid 13,000
Dividend received
Increase in debtors 8,000
Decrease in stock 7,000
Increase in creditors 4,000
(a) Rs 1,18,000
(b) Rs 1,24,000
(c) Rs 1,03,000
(d) Rs 1,00,000

Answer

C

Question.From the following particulars, what will be the amount of provision for tax made during the year?          B
Provision for Taxation
31.3.2011    50,000
31.3.2012    40,000
The Company paid taxes Rs 45,000 for the year 2011-2012.   
(a) Rs 45,000
(b) Rs  35,000
(c) Rs 40,000
(d) Rs 50,000

Answer

B

Question.Which of the following transactions would not create a cash flow ?   
(a) A company purchased some of its own stock from a stockholder
(b) Amortization of a patent
(c) Payment of a Cash Dividend
(d) Sale of equipment at book value

Answer

B

Question. Which of the following transactions would result inflow of cash:   
(a) Cash withdrawn from Bank for office use.
(b) Purchase of machinery worth Rs 2,00,000 and issued shares in consideration thereof. 
(c) Sale of furniture for Rs 3,000 to Mr. Mohan.
(d) Cash received from Debtors  Rs 6,000

Answer

D

Question. From the following information find out the inflow of cash          
Office Equipment `
31st March, 2014 60,000
31st March, 2013 1,00,000
Additional Information:
Depreciation for the year 2013-14 is Rs 7,000, Purchase of office Equipment during the year Rs 10,000 Part of Office Equipment sold at a profit of Rs 6,000    
(a) Rs 48,000
(b) Rs 49,000
(c) Rs 44,000
(d) Rs 33,000

Answer

B

Question.Declaration of Final Dividend would result in ___        
(a) Outflow in Financing activities.
(b) Outflow in Operating activities.
(c) Inflow in Operating activities.
(d) No Flow of cash.

Answer

D

Question.From the following information find out the inflow of cash   
31st March, 2015                      31st March,        2014
Plant and Machinery Account ` Rs6,00,000       Rs 4,50,000
Accumulated Depreciation `      Rs1,60,000       Rs 1,00,000
Additional Information: Depreciation for the year 2014‐15 is Rs 80,000. During the year Machinery was Purchased for Rs 2,50,000 and a part of asset was sold at a profit of Rs 40,000.
(a) Rs 1,20,000;
(b) Rs 1,00,000;
(c) Rs  80,000;
(d) Rs40000

Answer

A

Question.Gain on sale of   tangible non current asset is an         
(a) Operating activity
(b) Investing activity
(c) Financing activity
(d) Cash and Cash Equivalents

Answer

A

Question.. Bank Overdraft and cash credit are to be treated as:     
(a) Cash Equivalents
(b) Non Current Liabilities
(c) Investing Activity
(d) Short Term Borrowings

Answer

D

Question.Which of the following transactions would result in neither cash inflow nor outflow of cash and cash equivalents.   
(a) Issue of share capital
(b) Issue of bonus shares
(c) redemption  of debentures
(d) Trade recievable realized.

Answer

B

Question.Gain on sale of tangible current asset is an         
(a) Operating activity
(b) Investing activity
(c) Financing activity
(d) Cash and Cash Equivalents

Answer

A

Question.From the following information find out the cash flow from financing activities.   
Liabilities
Proposed Dividend
31st March 2013 20,000 
31st March 2014 15,000
Additional Information: Equity Share Capital raised  3,00,000 10% Debentures Redeemed  1,00,000 Preference Share capital Redeemed  50,000. Interim Dividend paid during the year  20,000         
(a) Rs 1,25,000
(b) Rs 1,00,000
(c) Rs1,50,000
(d) Rs 1,30,000

Answer

B

Question.A decrease in outstanding expense would result in         
(a) Decrease in cash balance 
(b) Increase in cash balance
(c) Unaltered
(d) Would change the current liabilities.

Answer

D

Question.Expenses paid in advance at the end of the year are i…….in ……ii activities while preparing cash flow statement         
(a) Added,Operating
(b) Subtracted,Operating
(c) Added,Investing
(d) Subtracted,Investing

Answer

A

Question.Which of the following shall be considered as an outflow of cash in cash flow statement.         
(a) Decrease in Public Deposits
(b) Issue of share capital
(c) Increase in accounts payable
(d) Decrease in accounts receivables.

Answer

A

Question.Interest collected by an automobile company selling a car on instalment basis will be classified as         
(a) Investing activity
(a) Operating activity
(a) Financing activity
(a) Cash and cash equivalents

Answer

B

Question.Pick the odd one out         
(a) Long term borrowings
(b) Reserves and surplus
(c) Share capital
(d) Public deposits.

Answer

B

Fill in the Blanks

Question.Debentures issued for consideration other than cash are not shown in the Cash Flow Statement because ______________is not received against the issue. 

Answer

Cash 

Question.Purchase of securities by a non- finance company is ______________   

Answer

Investing

Question.Loss on issue of debentures written off is shown by way of deduction from_________________ of the debentures. 

Answer

Face value 

Question.The basis of Cash Flow Statement is __________________     

Answer

Cash Basis

Question.Patents purchased and completely amortized in the year of purchase is added  under_____ ________and shown as an outflow under____________   

Answer

Operating, Investing

True or False

Question.Issue  of Bonus shares is shown as a financing activity. 

Answer

 False

Question.Operating activities are principal revenue producing activities of an enterprise and those activities that are not investing or financing activities.  

Answer

True

Question.Gratuity paid to a retiring employee is an Operating activity.   

Answer

True

Question.Buy Back of shares is an extraordinary item for Financing activity.  

Answer

True

Question.Shares issued to promoters in consideration of their services are shown as a financing activity. 

Answer

False

Cash Flow Statement Class 12 Accountancy MCQ Questions