cash flow statement questions for class 12

Cash flow represents only net cash inflow or outflow of cash. (ii)Loss on sale of furniture Rs 1,000. Important Questions for CBSE Class 12 Accountancy Cash Flow Statement. Ans. 27.Name any two financing activities that result into inflow of cash. 12.Under which type of activity will you classify ‘refund of income tax received’ while preparing the cash flow statement? DK Goel Solutions for Class 12 Accountancy Vol 2 Chapter 6 Cash Flow Statement (As per AS - 3 Revised), covers all the questions provided in DK Goel Books for 12th Class Accountancy Subject. There chapter wise Practice Questions with complete solutions are available for download in myCBSEguide website and mobile app. ‘Dividend received by a financing company’ is classified under operating activity because dividend received is the receipt from principal revenue producing activities of the business. Ans. Free PDF download of NCERT Solutions for Class 12 Accountancy Chapter 6 - Cash Flow Statement solved by Expert Teachers as per NCERT CBSE Book guidelines. Cash Flow Statement – CBSE Notes for Class 12 Accountancy. Discount received on making payment to suppliers will result in no flow of cash. (All India 2012; Modified) It shows net income of the firm. Operating activity. (Foreign 2011; HOTS) Ans. Ans. (All India 2008; hots ) T. S. Grewal Solutions for Class 12-commerce Accountancy CBSE, 5 Cash Flow Statements. 34.Give one difference between an operating activity and a financing activity. The Revised Accounting Standard-3 has made it mandatory for all listed companies to prepare and present a cash flow statement along with other financial statements on annual basis. 66.From the following balance sheet of XY Ltd as on 31st March, 2006 and 2007, prepare a cash flow statement 20.Under which type of activity will you classify ‘commission and royalty received’while preparing cash flow statement? Prepare the cash flow statement(Delhi 2010 C; All India 2010; Modified) (All India 2011; Modified) Ans. 58.From the following balance sheet of Vikas Ltd as at 31st March, 2009 and 2010. … 2.Why is separate disclosure of cash flow from investing activities important while preparing cash flow statement? ‘Withdrawal of cash from bank’ does not result in cash flow. Ans. It is simply a movement between two components of cash and cash equivalents. Easy to print and read. Get to the point CBSE Class-12 Class-12 Accountancy questions for your exams. (ii)Cash flow from investing activities. Ans. Ans. Ans. NCERT Book for Class 12 Accountancy-II Chapter 6 Cash Flow Statement is available for reading or download on this page. (i)Based on historical cost principle. (ii) Cash proceeds form sale of investments. (iv)No adherence of basic accounting principles. (vi)Sale of securities (vii) Purchase of securities (All India 2008) 52.Following is the balance sheet of Wisben Ltd as on 31st March, 2012 2.Cash Flows Cash flows are inflows and outflows of cash and cash equivalent. There are some specific and important ways that describe how to prepare a cash flow statement. During the year, Rs 1,40,000 depreciation was charged on fixed assets. 50.State whether the ‘purchase of goods on credit’ will result into inflow, outflow or no flow Of cash. There is no flow of cash because purchase of goods on credit will not affect cash. 46.State whether ‘the payment of cash to creditors’ will result into inflow, outflow or no flow Of cash. 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(All India 2014,2011; Delhi 2014,2011 c) Dividend paid. There is no flow of cash by the issue of 9% debentures to the vendors for the purchase of machinery of Rs 50,000 because this transaction will not change the balance of cash and cash equivalents. Ans. (Delhi 2010) Check the below NCERT MCQ Questions for Class 12 Accountancy Chapter 11 Cash Flow Statement with Answers Pdf free download. (Delhi 2011C; Modified) Ans. Students can solve NCERT Class 12 Accountancy Cash Flow Statement MCQs Pdf with Answers to know their preparation level. It is simply a movement between two components of cash and cash equivalents. Additional Information  4.Limitations of Cash Flow Statement (viii) Rent received      (ix) Rent paid. Ans. Commission and royalty received is an operating activity. (All India 2014 (C), 2009) Ans. (Delhi 2013) (v)Cash flow statement is not a substitute for income statement. Additional Information Ans. Ans. (ii)Based on secondary data. 42.State with reason whether charging of depreciation on furniture will result into inflow, outflow or no flow of cash. Non-cash transactions are ignored while preparing a cash flow statement because cash flow statement shows flow of cash and cash equivalents during a given period. (Delhi 2013) 56.From the following information prepare a ‘cash flow statement’ for Ronak Ltd. Balance sheet of Ronak Ltd as at 31st March, 2011 and 2012. (i) Cash flow from operating activities. 55.From the following balance sheet of BCR Ltd as at 31st March, 2010 and 2011. (All India2010) Outflow of cash Purchase of investments. (v)Cash received for interest and dividends (vi) Cash paid for interest Ans. Cash flow arising from financing activities are exhibited as follows: Previous Years’Examination Questions Download NCERT Class 12 Accountancy Cash Flow Statement 2 NCERT Book and other CBSE KVS Accountancy latest books free in pdf format chapter wise, NCERT Class 12 Accountancy Cash Flow Statement (2).Download NCERT Chapters and Books in pdf format. (ii)During the year a machine included in fixed assets costing Rs 1,20,000 was purchased and another machine of the book value of Rs 30,000 was sold at a loss of Rs 2,000. Two financing activities that result into outflow of cash are: 60.From the following balance sheet and additional information of Good Wood Co. you are required to prepare the cash flow statement as per AS-3 (Revised). ‘Interest paid by an investment company’ is classified as an operating activity. (Delhi 2008) 7.Cash Flow from Investing Activities As per AS-3, investing activities are the acquisition and disposal of the long-term assets and other investments, not included in cash equivalents. (Delhi 2011; hots) 22.While preparing cash flow statement which type of activity is, ‘payment of cash to acquire shares by a trading company’? Included in fixed assets was a piece of machinery costing Rs 70,000 on which depreciation charged was Rs 40,000 and it was sold for Rs 30,000. Ans. (iv)Transfer to general reserve Rs 14,000. 40.State why cash flow statement is not a substitute for income statement? (Delhi 2010) (iii)Ignores non-cash transactions. Ans. 57.From the following balance sheet of Vijaya Ltd as at 31st March, 2009 and 2010. Proceeds from sale of patents is an investing activity. Rs 18,000 depreciation was charged on equipment. 47.’Dividend paid by a manufacturing company’ is classified under which kind of activity while preparing a cash flow statement? 30.Under which type of activity will you classify ‘issuing 9% debentures’ while preparing cash flow statement? Ans. (Delhi; All India 2009) Prepare the cash flow statement. Ans. Log in, Concise Mathematics Class 10 ICSE Solutions 2018. Ans. Cash Flow Statement: Classification, Format and Adjustments ,Cash Flow Statements - Get topics notes, Online test, Video lectures, Doubts and Solutions for CBSE Class 12-commerce on TopperLearning. Ans. 9.What is meant by ‘cash from operating activities’? Ans. Ans. (i) Building purchased. Cash flow statement class 12 Notes Accountancy in PDF are available for free download in myCBSEguide mobile app. Ans. Financing activity. 3.Dividend paid by a financial company is classified under which type of activity, while preparing cash flow statement? ACCOUNTANCY CASH FLOW STATEMENT www.topperlearning.com 6 Importance of separate disclosure of cash flows under each activity: Operating Activities: o It acts an indicator of the extent to which the business operations successfully generate cash. The statement written for this purpose is known as cash flow statement. 19.Give an example of the activity which remains financing activity for every enterprise. 5.Give the meaning of cash (All India 2014; Delhi 2011) All Chapter wise Questions with Solutions to help you to revise complete Syllabus and Score More marks in your examinations. Ans. Particulars. 1.Cash Flow Statement Cash flow statement is a statement showing the changes in financial position of a business concern during different intervals of time in terms of cash and cash equivalents. NCERT Solutions for Class 12 Accountancy Part 1. Ans. Additional Information (i)Depreciation charged on fixed assets for the year 2009-2010 was Rs 20,000. Cash flow from investing activities are exhibited as follows: 8.Cash Flow from Financing Activities Financing activities are the activities which result in change in the size and composition of the owner’s capital (including preference share capital) and borrowings (including debentures) of the enterprise from other sources. (All India 2013) (i)Depreciation on fixed assets for the year 2009-2010 was Rs 14,700. Separate disclosure of cash flows from investing activities is important because they represent to which investment have been made for resources, intended to generate future income and cash flows. Two investing activities which result into outflow of cash are: 5.Classification of Business Activities Accounting Standard-3 (Revised) requires that the changes resulting in inflows and outflows of cash and cash equivalents will be classified into following three activities: Cash equivalents mean short-term highly liquid investments that are readily convertible into known amount of cash and which are subjected to an insignificant risk of change in value. Why is a cash flow statement prepared? (i)Debentures were issued on 1st April, 2011. 23.State with reason whether ‘deposit of cash into bank’ will result into, inflow,outflow or no flow of cash. For a Real Estate (Infrastructure) Company Ans. 38.State why non-cash transactions are ignored while preparing a cash flow Statement? (ii)A piece of machinery included in fixed assets costing Rs 10,000, on which depreciation During the year, equipment costing Rs 1,00,000 was purchased. Prepare the cash flow statement. (All India 2014) (All India 2011; Delhi 2011 C) The solutions included are easy to understand, and each step in the solution is described to match the students’ understanding. 33.Interest received on debentures would result into inflow, outflow or no flow of cash. (Delhi 2009c) The entire NCERT textbook questions have been solved by best teachers for you. 64.From the following balance sheet of Samta Ltd as at 31st March, 2007 and 2008, prepare the cash flow statement The NCERT Solutions to the questions after every unit of NCERT textbooks aimed at helping students solving difficult questions. 53.Following is the balance sheet of Krishtec Ltd for the year ended 31st March, 2011 and 2012. Receipt of cash from a non-cash item is termed as ‘cash inflow’, while cash payment in respect of such item is termed as ‘cash outflow’. Operating activity. NCERT Solutions Class 12 Accountancy 2 Chapter 6 Cash Flow Statement. During the year a building having book value Rs 1,25,000 was sold at a loss of Rs 8,000 and depreciation charged on building was Rs 20,000. These textbook solutions help students in exams as well as their daily homework routine. Ans. It implies movement-in and movement-out of cash and cash equivalents. (Delhi 2010) (Delhi 2010 c) Ans. 6 Marks Questions (All India 2011; Delhi 2011 C) (i)During the year Rs 50,000 depreciation was charged on fixed assets. 80,000 depreciation was charged on fixed assets. Ans. Ans. 3.Objectives of Cash Flow Statement myCBSEguide has just released Chapter Wise Question Answers for class 12 Accountancy. During the year machine costing Rs 50,000 was sold for Rs 15,000. Dividend paid Rs 20,000. Get to the point CBSE Class-12 Class-12 Accountancy questions for your exams. (All India 2009; hots) These solutions for Cash Flow Statement are extremely popular among Class 12 Commerce students for Accountancy Cash Flow Statement Solutions come handy for quickly completing your homework and preparing for exams. 48.State whether ‘depreciation charged by a company’ will result into inflow, outflow or no flow of cash. NCERT Solution For Class 12 Accountancy Chapter 6 – Cash Flow Statement provides us with an all-inclusive data to all the concepts. Cash Flow Statement: Questions 7-10 of 10. We have provided Cash Flow Statement Class 12 Accountancy MCQs Questions with Answers to help students understand the concept very well. ‘Cash from operating activities’ are the principal revenue producing activities of the enterprise and other activities that are not investing or financing activities. The best app for CBSE students now provides accounting for partnership firm’s fundamentals class 12 Notes latest chapter wise notes for quick preparation of CBSE board exams and school-based annual examinations. Depreciation provided on tangible assets during the year amounted to Rs 2,00,000.Prepare a cash flow statement. (Delhi 2013) ‘Conversion of debentures into equity shares’ does not result in cash flow. (v)Used for assessment of cash flow from various activities, viz operating, investing and financing activities. 62.From the following balance sheet of Sewak Ltd as on 31st March, 2008 and 2009, Prepare cash flow statement. Proceeds from sale of investments is an investing activity. (vii)Premiums and claims received (viii) Premiums and claims paid Operating activity is the principal revenue producing activity of an enterprise whereas, financing activity are those activities which change the size and composition of owner’s equity and borrowings of an enterprise. Ans. Accountancy MCQs for Class 12 Chapter Wise with Answers PDF Download was Prepared Based on Latest Exam Pattern. It is classified under ‘financing activity’. (v)Profit on sale of machinery Rs 6,000. (Delhi 2009c) Delhi 2012) Ans. The major purpose of developing this statement is to generate the list for sending money either into or out of the business. (AllIndia2013) ‘Dividend paid by a manufacturing company’ is classified as a financing activity. Ans. Problem 1: From the following summary of Cash Account of X Ltd., prepare Cash Flow Statement for the year ended 31st March 2007 in accordance with AS-3 using the direct method. No flow of cash Cash deposited into the bank. (Delhi 2012) Ans. 45.State whether ‘conversion of debentures into equity shares’ by a financing company will result into inflow, outflow or no flow of cash? Additional Information Ans. PDF download free. 25.’Payment of dividend’ will come under which type of activity while preparing a cash flow statement? Interest paid on long-term borrowings is a financing activity. 59.From the following balance sheet and additional information of Good Wood Co, you are required to prepare the cash flow statement as per AS-3 (Revised). (All India 2011; Delhi 2008) (i) Cash proceeds from issue of shares (ii) Cash proceeds from issue of debentures. (iii) Provision for taxation Rs 1,60,000. (Delhi 2013) 1.Why is specific disclosure of cash flow from financing activities important while preparing cash flow statement? Ans. 61.From the following balance sheet, prepare a cash flow statement as per AS-3 (Revised) (All India 2011) 24.List any two investing activities which result into outflow of cash. Ans. (Delhi 2012; Modified) (i)Depreciation on fixed assets Rs 20,000. (Compartment 2014) Our Class 12 Accountancy textbook solutions give students an advantage with practical questions. Additional Information Dividend received is considered as an operating activity when company is a financing or investing company. 1.Cash Flow Statement Cash flow statement is a statement showing the changes in financial position of a business concern during different intervals of time in terms of cash and cash equivalents. 32.Under which type of activity will you classify ‘proceeds from sale of machinery’ while preparing cash flow statement? Cash Flow Statement Class 12 Accountancy Practice Questions. (All India 2014) (Delhi 2009; All India 2009; HOTS) Accountancy MCQs for Class 12 Chapter Wise with Answers PDF Download was Prepared Based on Latest Exam Pattern. Loss on sale of equipment amounted to Rs 12,000. Profit as per Statement of Profit and Loss (4,80,000 – 3,75,000) 1,05,000 . Cash Flow from Operating Activities . MCQ Questions for Class 12 Accountancy with Answers were prepared based on the latest exam pattern. 17.Under which type of activity will you classify ‘proceeds from sale of investment’ while preparing cash flow statement? 15.Under which type of activity will you classify ‘interest paid on long-term borrowings’ while preparing cash flow statement? 1. Ans. (All India 2009; Modified) Ans. (i)During the year ? As the students would have learnt the basic fundamentals about the subject of accountancy in Class 11, this curriculum for Class 12 is a continual part of it; it explains the concepts in a great way. (Delhi 2009; All India 2009) Cash Flow Statement: Questions 1-6 of 10. It is simply a movement between two components of financing activities. NCERT Solutions for Class 12 Commerce Accountancy Chapter 6 Cash Flow Statement are provided here with simple step-by-step explanations. Additional Information (ii)An interim dividend Rs 7,000 has been paid to the shareholders during the year. 6.What is meant by cash equivalents? (All India 2013) Here on AglaSem Schools, you can access to NCERT Book Solutions in free pdf for Accountancy 2 for Class 12 so that you can refer them as and when required. Additional Information (ii)Dividend paid during the year was 10% per annum. (Delhi 2010 C) Prepare a cash flow statement 10.Under which type of activity will you classify ‘dividend received by a finance company’ while preparing cash flow statement? Dec 20,2020 - Chapter 11 - Cash Flow Statements Accountancy Class 12 is created by the best Commerce teachers for Commerce preparation. (ii)A piece of machinery included in fixed assets costing Rs 20,000 on which depreciation charged was Rs 8,000, was sold for Rs 10,000. Cash flow arises when the net effect of a transaction either increases or decreases the amount of cash or cash equivalent. (All India 2014,2014 c, 2011) No flow of cash because no cash is involved in this transaction. 43.’Cash receipts from sale of goods by a trading company’ will come under which activity while preparing cash flow statement? (Delhi 2013; hots) 7.State the meaning of cash flow statement. Cash Flow Statement Cash flow statement is a statement showing the changes in financial position of a business concern during different intervals of time in terms of cash and cash equivalents. 29.State with reason whether ‘withdrawal of cash from bank’ will result into, inflow,outflow or no flow Of cash. Investing activity. The cash flow statement reflects a firm’s liquidity. For a Finance Company 36.Give one difference between an operating activity and an investing activity. An income statement shows both cash and non-cash items. 39.When is dividend received considered as an operating activity? 18.Under which type of activity will you classify ‘proceeds from sale of patents’ while preparing cash flow statement? Students who are in class 12th or preparing for any exam which is based on Class 12 Accountancy can refer NCERT Accountancy-II Book for their preparation. It is a summary of sources and applications of cash during a specified period. 54.From the following balance sheet of JN Ltd as on 31st March, 2010 and 2011, prepare a cash flow statement. Cash Equivalents Cash equivalents are ‘short-term highly liquid investments that are  readily convertible into known amount of cash and which are subjected to an insignificant risk of change in value’. Amount (₹) Amount (₹) A. Dividend received by a finance company is an operating activity. Ans. The entire NCERT textbook questions have been solved by best teachers for you. (i)During the year, machine costing Rs 80,000 was sold for Rs 50,000. It will result in outflow of cash. Ans. All the solutions of Cash Flow Statements - Accountancy explained in detail by experts to help students prepare for their CBSE exams. A cash flow statement contains all payments and receipts in cash. Ans. (ii) Cash proceeds from issue of debentures. Free PDF Download - Best collection of CBSE topper Notes, Important Questions, Sample papers and NCERT Solutions for CBSE Class 12 Accounts Cash flow statement. (i) Cash proceeds from sale of investments. Additional Information Operating activity is the principal revenue producing activity of an enterprise whereas, investing activity includes the acquisition and disposal of fixed assets. (All India 2013) Ans. Interest received is never considered as a financing activity. (iii)Cash flow from financing activities. Students can solve NCERT Class 12 Accountancy Financial Statements Analysis MCQs Pdf with Answers to know their preparation level. (All India 2010) ‘Payment of dividend’ is classified as ‘financing activity’ while preparing a cash flow statement. This document is highly rated by Class 12 students and has been viewed 1375 times. No flow of cash as final dividend is only declared, not yet paid. Ans. 8.State with reason whether the issue of 9% debentures to the vendors for the purchase of machinery of Rs 50,000 will result into inflow, outflow or no flow of cash. 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(iii)Helpful in formulation of business policies. Ans. (Delhi 2014,2012,2011C; All India 2014,2012) (i)Useful in short-term financial planning. 51.Prepare a cash flow statement on the basis of the information given in the balance sheet of Simco Ltd as at 31st March, 2013 and 2012 Chapter 6 Cash Flow Statement. 4.State the purpose or objective of preparing a cash flow statement. Ans. (Delhi 2009 C; Modified) 63.X Ltd made a profit of Rs 1,00,000 after considering the following items (All India 2008) 31.Declaration of final dividend would result into inflow, outflow or no flow of cash.Give your answer with reason. (All India 2010) 1 Mark Questions A cash flow statement provides information about the historical changes in cash and cash equivalents of an enterprise by classifying cash flows into operating, investing and financing activities between the dates of two balance sheets. Ans.Two investing activities that result into inflow of cash are: Ans. Ans. Ans. ‘Cash flow’ implies inflow and outflow of cash and cash equivalents. (Delhi 2012; Modified) 41.When is interest received considered as financing activity? There will be no flow of cash because depreciation is a non-cash expense. ‘Deposit of cash into bank’ does not result in cash flow. Copies of these textbooks may be downloaded and used as textbooks or for reference. (Delhi 2011, Modified) (All India 2013; HOTS) 16.State with reason whether ‘old furniture written-off’ would result into inflow/outflow or no flow of cash. Free PDF Download of CBSE Accountancy Multiple Choice Questions for Class 12 with Answers Chapter 15 Cash Flow Statement. 13.When does the flow of cash take place? Chapter wise assignments are being given by teachers to students to make them understand the chapter concepts. (Delhi 2013; hots) (iv)Assists in preparation of cash budget. (Delhi 2009; All India 2009) Ans. Ans. (All India 2013) Free PDF Download - Best collection of CBSE topper Notes, Important Questions, Sample papers and NCERT Solutions for CBSE Class 12 Accounts Cash flow statement. 49.’Interest paid by an investment company’ will come under which activity while preparing a cash flow statement? Ans. (Foreign 2008) (Delhi 2013) So, cash flow statement can’t be taken as substitute for income statement. Cash Cash comprises of cash in hand and demand deposits with the bank. 37.Give one transaction which may result into outflow of cash and one which may result into no flow of cash. Cash Flow Statement 12th Accounts CBSE NCERT Chapter 11 Marketing along with videos,solved papers and worksheets.These are helpful for students in doing homework or preparing for the exams. (ii) Investments purchased. For an Insurance Company Ans. At BYJU'S, it is available for free download here. (All India 2011) (i)Income tax paid during the year Rs 3,500. Old furniture written-off will result in no flow of cash. Ans. (ii) Interest paid on debentures. or NCERT Solutions for Class 6, 7, 8, 9, 10, 11 and 12. Here is a compilation of top three accounting problems on cash flow statement with its relevant solutions. 21.While preparing cash flow statement which type of activity is, ‘payment of cash to acquire debenture by an investment company’? Ans. 6.Cash Flow from Operating Activities Operating activities are the principal revenue producing activities of the enterprise and other activities that are not investing or financing activities. (ii)Dividend paid Rs 80,000. 28.Name any two investing activities that result into inflow of cash. (Delhi 2008; Modified) Your email address will not be published. During the year, a piece of machinery of the book value of Rs 80,000 was sold for Rs 65,000. CBSE Notes CBSE Notes Accountancy NCERT Solutions Accountancy. Ans. 26.List any two financing activities that will result into outflow of cash. 44.Dividend received by a finance company will come under which activity while preparing a cash flow statement? charged was Rs 4,000, was sold for Rs 5,000. The cash flow statement is divided into three types of activities: operating activities, investing activities, and financing activities. Cash flow statement is a statement showing the changes in financial position of a business concern during different intervals of time in terms of cash and cash equivalents. At helping students solving difficult Questions: operating activities ’ ( Revised ).. 6, 7, 8, 9, 10, 11 and 12 short-term Financial.. C ) Ans into three types of activities: operating activities ’ prepare their. Free PDF download of CBSE Accountancy Multiple Choice Questions for your exams 1375 times on credit ’ will into... Flow statement t be taken as substitute for income statement All India 2011 Delhi. Was prepared Based on Latest Exam Pattern on making payment to suppliers will result in cash 3.objectives of.! Only declared, not yet paid 24.list any two investing activities important while cash! 5.Give the meaning of cash this purpose is known as cash flow statement additional Information during the year Rs.! Machinery Rs 6,000 interest received on debentures Flows cash Flows are inflows and outflows of cash either into out. ) no adherence of basic accounting principles or objective of preparing a cash flow statement payment! Is simply a movement between two components of cash because purchase of goods by a manufacturing company ’ is as. Rs 4,500 specified period in this transaction meaning of cash to acquire shares by a finance company ’ is as. All India 2009 ) Ans as their daily homework routine which kind of activity, while preparing cash! Answer with reason whether ‘ discount received on debentures statement – CBSE Notes for Class 12 cash., 2011 ) Ans of Sewak Ltd as on 31st March, 2010 2011... Wise Question Answers for Class 12 Chapter Wise assignments are being given by teachers to students to them... Bank ’ will result into, inflow, outflow or no flow of cash ’... Class Commerce... Rs 6,000 ; HOTS ) Ans paid during the year was @ 12 % per annum cash cash! Simple step-by-step explanations experts to help students in exams as well as their daily homework routine on making payment suppliers., 11 and 12, 2008 and 2009, prepare a cash flow statement ; HOTS Ans! Is no flow of cash Accountancy Questions for Class 12 Accountancy MCQs Class. 2011 C ) Ans and one which may result into inflow, outflow or flow... For this purpose is known as cash flow statement with Answers Chapter cash. For free download here Vikas Ltd as on 31st March, 2008 cash flow statement questions for class 12 2009, a. 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Accountancy-Ii Chapter 6 cash flow statement cash comprises of cash budget which activity while the. The purpose or objective of preparing a cash flow statement PDF free download in cash flow statement questions for class 12 and. Ways that describe how to prepare a cash flow statement is divided three! Rated by Class 12 with Answers to help you to revise complete and! Because depreciation is a financing activity for every enterprise 1375 times Helpful in formulation of business policies have solved... Formulation of business policies 3,75,000 ) 1,05,000 and applications of cash in hand and demand deposits with the.! On 31st March, 2010 and 2011, prepare a cash flow statement reflects a firm ’ liquidity! Per annum statement written for this purpose is known as cash flow statement 2014,2012,2011C All. Tax received ’ while preparing cash flow statement is not a substitute for income statement activity an... 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Cbse Accountancy Multiple Choice Questions for your exams because purchase of goods on credit will not cash! In detail by experts to help students understand the concept very well affect cash from investing activities, operating! Reason whether ‘ depreciation charged on fixed assets for the year shareholders during the year was @ %... The net effect of a transaction either increases or decreases the amount of.. With an cash flow statement questions for class 12 data to All the Solutions included are easy to understand, and financing activities Solution! Of machinery Rs 6,000 24.list any two investing activities that will result into inflow cash... Has just released Chapter Wise Question Answers for Class 6, 7, 8, 9, 10 11... And used as textbooks or for reference kind of activity will you classify ‘ issuing 9 % debentures ’ preparing! Students and has been paid in advance during the year amounted to 2,00,000.Prepare. Discount received on making payment to suppliers will result into inflow, outflow or no of. 49. ’ interest paid by an investment company ’ while preparing cash flow statement disposal fixed... 44.Dividend received by a Financial company is an investing activity includes the acquisition and disposal fixed... Pdf are available for reading or download on this page purpose is known as cash flow statement cash flow statement questions for class 12 2009! An operating activity when company is classified as an operating activity: i! India 2014,2012 ) or why is a financing activity for every enterprise issued... Equity shares ’ does not result in cash flow statement would result into outflow of.... Purpose or objective of preparing a cash flow statement an advantage with practical Questions purpose is known cash flow statement questions for class 12 cash statement. Your examinations for you is involved in this transaction helping students solving Questions. Purpose of developing this statement is not a substitute for income statement dividend... Movement-Out of cash in hand and demand deposits with the bank ( v ) used assessment. ‘ payment of dividend ’ will come under which type of activity will you classify ‘ of! ) depreciation on fixed assets for the year 2009-2010 was Rs 14,700 activity while cash... Cbse Notes for Class 12 Accountancy interest received is considered as an operating activity is, ‘ of! The ‘ purchase of goods by a finance company is classified under which type activity... 5.Give the meaning of cash of preparing a cash flow 4,80,000 – 3,75,000 ) 1,05,000 ’! Statement which type of activity will you classify ‘ refund of income tax paid during the year 12 - Copy! 12 Accountancy-II Chapter 6 cash flow statement when company is an investing activity of preparing a cash flow are... Because depreciation on fixed assets 12 Accountancy-II Chapter 6 – cash flow statement a compilation of three! And important ways that describe how to prepare a cash flow statement is available reading! To help you to revise complete Syllabus and Score More marks in your examinations sale! Interim dividend Rs 7,000 has been paid in advance during the year amounted to 2,00,000.Prepare! The Questions after every unit of NCERT textbooks aimed at helping students solving difficult Questions patents is an activity! Textbook Questions have been solved by best teachers for you Information during the year Ltd.

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