laboursonline – MCQs, Mock Tests | ICSE XII MCQ Questions for Class 12 Accountancy set-11

An example of Cash Flow from Investing Activities :

1. Cash Sales
2. Issue of Shares
3. Payment of cash for purchase of machinery
4. Payment of Dividend

✅ Correct Answer: 3

An example of Cash Flows from Financing Activity is :

1. Sale of goods
2. Sale of Investment
3. Cash receipts from issue of shares
4. Interest received

✅ Correct Answer: 3

How will you treat payment of ‘Interest of Debentures’ while preparing a Cash Flow Statement ?

1. Cash Flow from Operating Activities
2. Cash Flow from Investing Activities
3. Cash Flow from Financing Activities
4. Cash Equivalents

✅ Correct Answer: 3

Where will you show purchase of goodwill in Cash Flow Statement:

1. Cash Flow from Operating Activities
2. Cash Flow from Investing Activities
3. Cash Flow from Financing Activities
4. Cash Equivalent

✅ Correct Answer: 2

Interest received by a finance company is classified under which kind of activity while preparing a Cash Flow Statement ?

1. Cash Flow from Operating Activities
2. Investing Activities
3. Financing Activities
4. Cash Equivalent

✅ Correct Answer: 1

Which of the following item is considered as cash equivalents:

1. Bank Overdraft
2. Bills Receivable
3. Debtors
4. Short-term Investment

✅ Correct Answer: 1

Which of the following item is not considered as cash equivalents ?

1. Bank Overdraft
2. Commercial Papers
3. Treasury Bills
4. Investment

✅ Correct Answer: 4

Cash payment to employees is a Cash Flow from:

1. Operating Activities
2. Investing Activities
3. Finance Activities
4. All the above

✅ Correct Answer: 1

Which of the following is not a Cash in Flow ?

1. Sale of Fixed Asset
2. Purchase of Fixed Asset
3. Issue of Debentures
4. Sale of Goods for Cash

✅ Correct Answer: 2

In cash flow statement, the item of ‘Interest’ is shown in:

1. Operating Activities
2. Investing Activities
3. Financial Activities
4. In both (d) & (c)

✅ Correct Answer: 4

Which of the following is not a Cash Outflow:

1. Increase in Creditors
2. Increase in Debtors
3. Increase in Stock
4. Increase in prepaid expenses

✅ Correct Answer: 1

Cash from operation is equal to :

1. Net Profit + Increase in Current Assets
2. Net Profit + Decrease in Current Liabilities
3. Operating Profit + Adjustment of Current Assets and Current Liabilities
4. All of the above

✅ Correct Answer: 2

Income tax refund is a cash of:

1. Source
2. Application
3. Both (a) & (b)
4. None of these

✅ Correct Answer: 1

Cash Flow Statement in based upon:

1. Cash basis of accounting
2. Accrual basis of accounting
3. (a) and (b) both
4. None of these

✅ Correct Answer: 1

Cash Flow Statement is related to:

1. AS-3
2. AS-6
3. AS-9
4. AS-12

✅ Correct Answer: 2

Cash Flow Statement is prepared from:

1. Balance Sheet
2. Profit & Loss Account
3. Additional Information
4. All of these

✅ Correct Answer: 4

Following Is included in Cash Flow from Operating Activities:

1. Royalties, Fees, Commission
2. Purchase of Debentures
3. Purchase of Machinery
4. issue of Shares

✅ Correct Answer: 1

Following are included in cash equivalent:

1. Treasury Bill
2. Trade Bill
3. Bank Deposits of Short Maturity Period
4. All of above

✅ Correct Answer: 4

Claims received from Insurance Companies are treated as:

1. Cash Flow from Operating Activities
2. Cash Flow from Investing Activities
3. Cash Flow from Financing Activities
4. None of these

✅ Correct Answer: 1

Which activity comes under ‘Operating Activities’ ?

1. Purchase of Land
2. Issue of Debentures
3. Proceeds from Issuance of Equity Shares
4. Cash Sales

✅ Correct Answer: 4

Which of the following is not a cash inflow ?

1. Decrease in Debtors
2. Issue of Debentures
3. Decrease in Creditors
4. None of these

✅ Correct Answer: 3

Which one of following is not a non-cash item ?

1. Cash Sales
2. Goodwill written off
3. Depreciation
4. Provision of Bad Debts

✅ Correct Answer: 1

Cash flow statement according to AS-3 is mandatory to:

1. All enterprises
2. Companies listed on a stock exchange
3. Enterprises having turnover expending 50 Rs crore
4. (b) & (c) both

✅ Correct Answer: 4

Decrease in Current Asset is……….in operating profit

1. Subtracted
2. Added
3. Divided
4. Multiplied

✅ Correct Answer: 2

Following are true about cash equivalent:

1. More Liquid Short-term Investment
2. Minimum risk
3. Maturity of 3 months or less than 3 months
4. All the above

✅ Correct Answer: 4