CBSE Class 12 Cash Flow Statement Multiple Choice Questions with Answers. MCQ Questions Class 12 Cash Flow Statement with Answers Is Prepared Based on Latest Exam Pattern. Students can solve NCERT MCQ questions Class 12 Cash Flow Statement with Answers to know their preparation level.
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MCQ Questions Class 12 Cash Flow Statement with Answers - Set - 1
Question 1:
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
Correct Answer – (B)
Question 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
Correct Answer – (C)
Question 3:
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)
Correct Answer – (D)
Question 4:
If net profit is ₹ 35,000 after writing off good will ₹ 6,000 and loss on sale of furniture ₹ 1,000, cash flow from operating activities will be :
(a) ₹ 35,000
(b) ₹ 42,000
(c) ₹ 29,000
(d) ₹ 28,000
Correct Answer – (B)
Question 5:
Issue of shares in consideration of purchase of plant and machinery results into :
(a) Inflow of Cash
(b) Outflow of Cash
(c) Neither Inflow nor Outflow
(d) None of these
Correct Answer – (C)
MCQ Questions Class 12 Cash Flow Statement With Answers
Question 6:
While calculating cash flow from operating netivities which will be deducted ?
(a) Increase in Creditors
(b) Increase in Debtors
(c) Decrease in Debtors
(d) Decrease in Prepaid Expenses
Correct Answer – (B)
Question 7:
Which of the following is an example of Cash Flow from Operating Activities ?
(a) Purchase of Machinery
(b) Issue of Shares
(c) Purchases of Inventory for Cash
(d) Purchases of Investment
Correct Answer – (C)
Question 8:
Cash sales in :
(a) Operating Activity
(b) Investing Activity
(c) Financing Activity
(d) None of these
Correct Answer – (A)
Question 9:
If net profit is 7 50,000 after writing off goodwill 7 10,000 then the cash flow from operating activities will be:
(a) ₹ 60,000
(b) ₹ 40,000
(c) ₹ 50,000
(d) ₹ 30,000
Correct Answer – (A)
Question 10:
Preparation of cash flow statement is :
(a) Mendatory
(b) Recommendatory
(c) Required under the Companies Act
(d) None of these
