ACCOUNTANCY FOR CLASS 12 CHAPTER 11 CASH FLOW STATEMENTS, MCQS ALONG WITH THE ANSWERS

Free Accountancy Multiple Choice Questions for Class 12 CBSE along with the answers Chapter 11: Cash Flow Statements. Accountancy MCQs for Class 12 chapter-wise with the answers are prepared based on the current exam pattern. Students will be able to tackle the MCQs with these answers to realise their spadework level.

1. 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)

2. 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: (c) Increase in General Reserve

3. 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: (b) Increase in Creditors

4. 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: (c) Cash Flow from Financing Activities

5. 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: (a) Cash Flow from Operating Activities

6. 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: (b) Net Profit + Decrease in Current Liabilities

7. Which of the 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

8. 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 the above

Answer: (a) Cash Flow from Operating Activities

9. 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 Rs 50 crore

(d) Both (b) and (c)

Answer: (d) Both (b) and (c)

10. Which calculates cash flow from operating activities that is added to net profit?

(a) Increase in Stock

(b) Decrease in Stock

(c) Increase in Debtors

(d) Decrease in Creditors

Answer: (b) Decrease in Stock

We trust that the Accountancy MCQs offered for Class 12 with answers to Chapter 11: Cash Flow Statements will help you. Assuming you have any questions with respect to Class 12 CBSE Accountancy, Cash Flow Statements MCQs, drop a remark underneath, and we will hit you up at the most punctual.

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