Cash Flow Statement

24 solved questions from Class 12 Accountancy, each with the full working. Tap any question to see the step-by-step solution.

• 1 What is the primary topic or theoretical principle explored in 'Cash Flow Statement' (Class 12 ACCOUNTANCY)? medium MCQ Chapter Core Principle
• 2 Which key mechanism or analytical rule is highlighted in 'Cash Flow Statement'? medium MCQ Key Analytical Mechanism
• 3 What is the primary topic or principle explained in 'Cash Flow Statement' (Class 12 Accountancy)? medium MCQ Chapter Core Concept
• 4 Which key observation or fact is central to understanding 'Cash Flow Statement'? medium MCQ Key Fact & Mechanism
• 5 Why is the study of 'Cash Flow Statement' important for students of Class 12? medium MCQ Learning Significance
• 6 What is a common application or real-world example related to 'Cash Flow Statement'? medium MCQ Real World Application
• 7 What key takeaway should students retain after completing 'Cash Flow Statement'? medium MCQ Chapter Summary & Takeaway
• 8 The following trial balance is extracted from the books of ABC Ltd. as on 31 March 2026 (all figures in Rs.): Profit & Loss Account (Credit) 2,00,000 Depreciation expense 40,000 Interest paid 15,000 Tax paid 25,000 Trade receivables – Opening 60,000, Closing 80,000 Trade payables – Opening 50,000, Closing 70,000 Inventories – Opening 1,10,000, Closing 90,000 Purchase of plant & machinery (cash) 1,20,000 Sale of equipment (cash) 30,000 (Cost 50,000, Accumulated depreciation 20,000) Proceeds from issue of share capital 50,000 Dividend paid 10,000 Opening cash & bank balance 20,000 Prepare a cash flow statement (indirect method) and determine the closing cash & bank balance. hard 5 marks Full cash flow statement preparation
• 9 The cash received from selling a subsidiary’s shareholding for cash is classified under which category in the cash flow statement? medium MCQ 1 mark Classification of cash flows
• 10 XYZ Ltd. reported a profit before tax of Rs. 1,20,000 for the year ended 31 March 2026. Depreciation charged during the year was Rs. 30,000. During the year, trade receivables increased by Rs. 15,000, trade payables decreased by Rs. 10,000 and inventories decreased by Rs. 5,000. No interest or tax was paid. Compute the cash flow from operating activities using the indirect method. easy 2 marks Indirect method cash flow calculation
• 11 A company acquires a machine costing Rs. 1,00,000 by issuing fully paid 10,000 equity shares of Rs. 10 each. How should this transaction be reported in the cash flow statement? medium MCQ 1 mark Non‑cash investing and financing activities
• 12 For the year ended 31 March 2026, a company reported profit before tax of Rs. 1,50,000. Depreciation charged during the year was Rs. 25,000. During the year, trade receivables increased by Rs. 20,000, inventories decreased by Rs. 8,000 and trade payables increased by Rs. 12,000. Interest paid was Rs. 5,000 and tax paid was Rs. 18,000. Using the indirect method, compute the cash flow from operating activities. medium 2 marks Operating cash flow – indirect method
• 13 A company acquires a new machine costing Rs. 5,00,000 by issuing 5,000 fully paid equity shares of Rs. 10 each. How should this transaction be reported in the cash flow statement? hard MCQ 2 marks Non‑cash investing and financing activities
• 14 A company received Rs. 45,000 cash on the sale of a delivery van. Under the cash flow statement, this cash inflow should be classified under which activity? easy MCQ 1 mark Classification of cash flows
• 15 A company pays Rs. 2,00,000 cash to settle its long‑term loan. Under the cash flow statement, this cash outflow should be classified under which activity? medium MCQ 2 marks Classification of financing cash flows
• 16 XYZ Ltd. reported profit before tax of Rs. 1,80,000 for the year ended 31 March 2026. Depreciation expense charged during the year was Rs. 35,000. During the year, trade receivables increased by Rs. 10,000, inventories decreased by Rs. 5,000, and trade payables decreased by Rs. 7,000. Interest paid was Rs. 4,000 and tax paid was Rs. 22,000. Using the indirect method, compute the cash flow from operating activities. medium 2 marks Indirect method of operating cash flow
• 17 During the year, a company received Rs. 30,000 cash from the sale of a used office chair. Under the cash flow statement, this cash inflow should be classified under which activity? easy MCQ 1 mark Classification of cash flow activities
• 18 A company acquires a new delivery truck costing Rs. 8,00,000 by issuing 8,000 fully paid equity shares of Rs. 10 each. How should this transaction be disclosed in the cash flow statement? medium 1 mark Non‑cash investing & financing activities
• 19 A company earned Rs. 12,000 as interest on its savings bank account during the year. Under the cash flow statement, this cash inflow should be classified under which activity? easy MCQ 1 mark Classification of cash flows
• 20 During the year ended 31 March 2027, ABC Ltd. reported profit before tax of Rs. 2,20,000. Depreciation expense charged was Rs. 40,000. Trade receivables increased by Rs. 15,000, inventories increased by Rs. 8,000, and trade payables decreased by Rs. 5,000. Interest paid was Rs. 6,000 and tax paid was Rs. 30,000. Using the indirect method, calculate the cash flow from operating activities. medium 2 marks Indirect method calculation
• 21 A company sold an old office chair for Rs. 7,500 cash during the year. Under the cash flow statement, this cash inflow should be classified under which activity? medium MCQ 3 marks Classification of cash flows
• 22 A company sold an old office chair for Rs. 7,500 in cash during the year. Under the cash flow statement, this cash inflow should be classified under which activity? easy MCQ 1 mark Classification of cash flows
• 23 A company reported profit before tax of Rs. 3,00,000 for the year. Depreciation expense was Rs. 50,000. Trade receivables increased by Rs. 20,000, inventories increased by Rs. 10,000, and trade payables decreased by Rs. 5,000. Interest paid was Rs. 8,000 and tax paid was Rs. 28,000. Using the indirect method, calculate the cash flow from operating activities. medium 2 marks Operating activities – indirect method
• 24 A company reported profit before tax of Rs. 3,30,000 for the year. Depreciation expense was Rs. 35,000. Trade receivables increased by Rs. 12,000, inventories increased by Rs. 5,000, trade payables decreased by Rs. 3,000. Interest paid was Rs. 6,000 and tax paid was Rs. 22,000. Using the indirect method, compute the cash flow from operating activities. hard 3 marks Operating cash flow calculation