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Cash Flow Statement

Board » Bihar Board » Class 12th » English Medium » Commerce » Accountancy » L-16: Cash Flow Statement

Objective Questions (MCQs)

Question
Multiple Choice
VVI
Verified
ID- 4958
BSEB, 2018

1. Which of the following activity comes under Financial Activities:

  • (A) Receipts from issuance of Equity Shares
  • (B) Cash Sales
  • (C) Cash at Bank
  • (D) Purchase of Debentures
Multiple Choice
Verified
ID- 4959
BSEB, 2018

2. Which one of the following is a non-cash item?

  • (A) Depreciation
  • (B) Goodwill written off
  • (C) Both (A) and (B)
  • (D) None of these
Multiple Choice
VVI
Verified
ID- 4960
BSEB, 2010, 18

3. Cash Flow Statement is related:

  • (A) AS-3
  • (B) AS-6
  • (C) AS-9
  • (D) AS-12
Multiple Choice
VVI
Verified
ID- 4961
BSEB, 2018

4. 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)
Multiple Choice
Verified
ID- 4962

5. Which of the following items is not considered cash equivalents?

  • (A) Cash at Bank
  • (B) Commercial Papers
  • (C) Treasury Bills
  • (D) Investment
Multiple Choice
VVI
Verified
ID- 4963
BSEB, 2019

6. Cash sales are:

  • (A) Operating Activity
  • (B) Investing Activity
  • (C) Financing Activity
  • (D) None of these
Multiple Choice
Verified
ID- 4964

7. If net Profit is ₹ 35,000 after writing off goodwill ₹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
Multiple Choice
VVI
Verified
ID- 4965

8. Issue of shares in consideration of the purchase of plant and machinery results into:

  • (A) Inflow of Cash
  • (B) Outflow of Cash
  • (C) Neither Inflow nor Outflow
  • (D) None of these
Multiple Choice
Verified
ID- 4966

9. If net profit is ₹ 50,000 after writing off goodwill of ₹ 10,000 then the cash flow from operating activities will be:

  • (A) ₹60,000
  • (B) ₹40,000
  • (C) ₹50,000
  • (D) ₹30,000
Multiple Choice
VVI
Verified
ID- 4967

10. While calculating cash flow from operating activities which will be deducted?

  • (A) Increase in Creditors
  • (B) Increase in Debtors
  • (C) Decrease in Debtors
  • (D) Decrease in Prepaid Expenses
Multiple Choice
VVI
Verified
ID- 4968

11. 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
Multiple Choice
Verified
ID- 4969

12. An example of cash flow from investing activities:

  • (A) Cash Sales
  • (B) Issue of Shares
  • (C) Payment of cash for purchase of machinery
  • (D) Payment of Dividend
Multiple Choice
VVI
Verified
ID- 4970

13. An example of cash flows from financing activities is:

  • (A) Sale of goods
  • (B) Sale of investment
  • (C) Cash receipts from issue of shares
  • (D) Interest received
Multiple Choice
VVI
Verified
ID- 4971

14. How will you treat payment of interest on debentures will prepare 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
Multiple Choice
Verified
ID- 4972

15. Interest paid by other than financial enterprises is shown in the cash flow statement under:

  • (A) Operating Activities
  • (B) Investing Activities
  • (C) Financial Activities
  • (D) None of these
Multiple Choice
VVI
Verified
ID- 4973
BSEB, 2011, 19

16. Which of the following is not a cash outflow:

  • (A) Increase in Creditors
  • (B) Increase in Debtors
  • (C) Increase in Stock
  • (D) Increase in prepaid expenses
Multiple Choice
Verified
ID- 4974

17. In the cash flow statement, the item of 'interest' is shown in:

  • (A) Operating Activities
  • (B) Investing Activities
  • (C) Financial Activities
  • (D) In both (B) & (C)
Multiple Choice
Verified
ID- 4975

18. Which of the following is not a Cash in Flow?

  • (A) Sale of Fixed Asset
  • (B) Purchase of fixed Asset
  • (C) Issue of Debentures
  • (D) Sale of Goods for Cash
Multiple Choice
VVI
Verified
ID- 4976
BSEB, 2011, 19

19. Which of the following item is considered as cash equivalents?

  • (A) Bank Overdraft
  • (B) Bills Receivable
  • (C) Debtors
  • (D) Short-term Investment
Multiple Choice
Verified
ID- 4977

20. Interest received by a finance company is classified under which kind of activity will prepare a cash flow statement?

  • (A) Operating Activities
  • (B) Investing Activities
  • (C) Financing Activities
  • (D) Cash Equivalent
Multiple Choice
VVI
Verified
ID- 4978
BSEB, 2019

21. Cash payment to employees is a Cash Flow from:

  • (A) Operating Activities
  • (B) Investing Activities
  • (C) Financing Activities
  • (D) All of the above
Multiple Choice
VVI
Verified
ID- 4979

22. Dividends received by other than financial enterprises show in the cash flow statement under:

  • (A) Operating Activities
  • (B) Investing Activities
  • (C) Financial Activities
  • (D) None of these
Multiple Choice
VVI
Verified
ID- 4980

23. Where will you show the purchase of goodwill in the Cash Flow Statement?

  • (A) Cash Flow from Operating Activities
  • (B) Cash Flow from Investing Activities
  • (C) Cash Flow from Financing Activities
  • (D) Cash Equivalent
Multiple Choice
Verified
ID- 4981

24. Redemption of Debentures/Preference shares results into:

  • (A) Source of fund
  • (B) Use or application of fund
  • (C) No flow of fund
  • (D) No flow of cash
Multiple Choice
VVI
Verified
ID- 4982

25. Preparation of cash flow statement is:

  • (A) Mandatory
  • (B) Recommendatory
  • (C) Required under the Companies Act
  • (D) None of these
Multiple Choice
Verified
ID- 4983

26. While calculating profit from operating activities, which will be added back to net profit:

  • (A) Goodwill written off
  • (B) Depreciation
  • (C) Loss on Sale of Fixed Assets
  • (D) All of the above
Multiple Choice
Verified
ID- 4984

27. Dividend received by financial enterprises is shown in the cash flow statement under which activities:

  • (A) Operating Activities
  • (B) Investing Activities
  • (C) Financial Activities
  • (D) None of these
Multiple Choice
Verified
ID- 4985

28. Profit during the year is ₹ 20,000. During the year, there was an increase in stock by 9,000 and a decrease in debtors of ₹ 5,000. What is the amount of cash from operating activities?

  • (A) ₹6,000
  • (B) ₹16,000
  • (C) ₹24,000
  • (D) ₹34,000
Multiple Choice
VVI
Verified
ID- 4986
BSEB, 2010

29. While calculating cash flow from operating activities which is added to net profit:

  • (A) Increase in Stock
  • (B) Decrease in Stock
  • (C) Increase in Debtors
  • (D) Decrease in Creditors
Multiple Choice
Verified
ID- 4987
BSEB, 2013, 19

30. Which of the following is not the source of cash:

  • (A) Purchase of Fixed Assets
  • (B) Funds from Operations
  • (C) Issue of Debentures
  • (D) Sale of Fixed Assets
Multiple Choice
VVI
Verified
ID- 4988
BSEB, 2019

31. The following are included in the cash equivalent:

  • (A) Treasury Bill
  • (B) Trade Papers
  • (C) Bank Deposits of Short Maturity period
  • (D) All of the above
Multiple Choice
Verified
ID- 4989

32. A cash flow statement according to As-3 is mandatory to:

  • (A) All enterprises
  • (B) Companies listed on a Stock Exchange
  • (C) Enterprises having turnover expanding ₹ 50 crore
  • (D) (B) & (C) both
Multiple Choice
VVI
Verified
ID- 4990

33. Which activity comes under 'Operating Activities'?

  • (A) Purchase of Land
  • (B) Issue of Debentures
  • (C) Proceeds from Issuance of equity shares
  • (D) Cash Sales
Multiple Choice
VVI
Verified
ID- 4991

34. Which of the following is not a cash inflow?

  • (A) Decrease in debtors
  • (B) Issue of Debentures
  • (C) Decrease in Creditors
  • (D) None of these
Multiple Choice
Verified
ID- 4992

35. 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
Multiple Choice
VVI
Verified
ID- 4993

36. The following are true about cash equivalent:

  • (A) More Liquid Short-term Investment
  • (B) Minimum risk
  • (C) Maturity of 3 months or less than 3 months
  • (D) All of the above
Multiple Choice
Verified
ID- 4994

37. An analysis of cash flows is useful for ........... planning.

  • (A) Short-term
  • (B) Long-term
  • (C) Medium-term
  • (D) Very Long-period
Multiple Choice
VVI
Verified
ID- 4995
BSEB, 2009, 19

38. Cash Flow Statement is based upon:

  • (A) Cash basis of accounting
  • (B) Accrual basis of accounting
  • (C) (A) and (B) Both
  • (D) None of these
Multiple Choice
VVI
Verified
ID- 4996

39. Which one of the following is a cash item?

  • (A) Cash Sales
  • (B) Goodwill written off
  • (C) Depreciation
  • (D) Provision of Bad Debts
Multiple Choice
VVI
Verified
ID- 4997
BSEB, 2010, 12, 19

40. Cash Flow Statement is prepared from:

  • (A) Balance Sheet
  • (B) Profit & Loss Account
  • (C) Additional Information
  • (D) All of these
Multiple Choice
VVI
Verified
ID- 4998

41. Decrease in Current Asset is ............ in operating profit:

  • (A) Subtracted
  • (B) Added
  • (C) Divided
  • (D) Multiplied
Multiple Choice
VVI
Verified
ID- 4999

42. Payment of Income Tax is classified as:

  • (A) Operating Activities
  • (B) Investing Activities
  • (C) Financial Activities
  • (D) None of these
Multiple Choice
Verified
ID- 5000

43. 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
Multiple Choice
Verified
ID- 5001

44. Which of the following is an example of cash flow from Operating Activities?

  • (A) Purchase of Machinery
  • (B) Issue of Shares
  • (C) Purchase of Inventory for Cash
  • (D) Purchase of Investment
Multiple Choice
VVI
Verified
ID- 5002

45. The income tax refund is an of cash:

  • (A) Source
  • (B) Application
  • (C) Both (A) & (B)
  • (D) None of these
Multiple Choice
VVI
Verified
ID- 5003

46. Which of the following are not considered as cash equivalents?

  • (A) Bank Overdraft
  • (B) Commercial Papers
  • (C) Treasury Bills
  • (D) Short-term Investment
Multiple Choice
Verified
ID- 5004

47. How will you treat Bank Overdraft in the Cash Flow Statement?

  • (A) Cash Flow from Operating Activities
  • (B) Cash Flow from Investing Activities
  • (C) Cash Flow from Financing Activities
  • (D) Cash Equivalents
Multiple Choice
Verified
ID- 5005

48. An example of Cash Flow from Investing Activities is:

  • (A) Issue of shares
  • (B) Repayment of long term loans
  • (C) Purchase of raw materials for cash
  • (D) Sale of Investment by non-financial organisation
Multiple Choice
VVI
Verified
ID- 5006

49. Which of the following is considered as Cash Equivalent?

  • (A) Treasury Bill
  • (B) Trade Bills
  • (C) Liquid short term Investment
  • (D) All of the above