Cash Flow Statement MCQ Questions Class 12 Accountancy Part II Chapter 6
NCERT MCQ Questions for Class 12 Accountancy Part II Chapter 6 Cash Flow Statement. Cash Flow Statement MCQ Questions with Answers from Class 12 Accountancy Part II.
(1) A cash flow statement classifies inflow and outflows of cash under ——– categories.
(a) Four
(b) Two
(c) Five
(d) Three
Ans: (d) Three
(2) The information provided by cash flow statement helps the users o financial statement to analysis ——–.
(a) Profitability position of business
(b) Position of its asset & liability
(c) The ability to generate fund
(d) Both (a) and (c)
Ans: (c) The ability to generate cash.
(3) As per accounting standard 3, cash implies ———
(a) Cash in hand
(b) Demand deposit
(c) Liquid investment
(d) Both (a) and (b)
Ans: (d) Both (a) and (b)
(4) An investment is considered as cash equivalent when it has ——.
(a) Long maturity period of 1 year
(b) Medium term maturity period 6 month
(c) Short maturity period of less than 3 months
(d) Both (b) and (c)
Ans: (c) Short maturity period of less than 3 months
(5) Purchasing a machinery for cash is considered as an activity generating from ——–.
(a) Cash outflow from operating activity
(b) Cash outflow from —– activity
(c) Cash outflow from investing activity
(d) None of these
Ans: (c) Cash outflow from investing activity
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(6) Cash outflow from operating activity include ———.
(a) Cash payment for acquiring asset
(b) Cash proceeds from shares
(c) Interest paid on debentures
(d) Cash payment to suppliers of goods/services
Ans: (d) Cash payment to suppliers of goods/services
(7) Cash received for royalties, commission is classified as cash inflow from ——-.
(a) Investing activity
(b) Financing activity
(c) Both (a) and (b)
(d) Operating activity
Ans: (d) Operating activity
(8) Cash advances and loans made by financial organisation is considered as an ——–.
(a) Financing activity
(b) Investing activity
(c) Operating activity
(d) Both (a) and (c)
Ans: (c) Operating activity
(9) Receipt from interest and dividend is a cash inflow from ——.
(a) Operating activity
(b) Financing activity
(c) Investing activity
(d) Both (b) and (c)
Ans: (c) Investing activity
(10) Redemption of debenture is cash outflow from ——-.
(a) Investing activity
(b) Financing activity
(c) Operating activity
(d) None of these
Ans: (b) Financing activity
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