CBSE Class 12 Accountancy Cash Flow Statement Set B

LEARNING OBJECTIVES

i) To understand the meaning of cash flow statement

ii) To understand the meaning of cash, cash funds and cash equivalents.

iii) To calculate operating profit and cash flow from operating activities

iv) To understand operating and non-operating expenses and incomes.

v) To calculate cash flow from operating, investing and financing activities.

vi) To prepare cash flow statement with additional information

 CASH FLOW STATEMENT

Qus:1 Why is the cash flow statement not a suitable judge of profitability ?

Qus:2 Under which accounting standard , cash flow statement is prepared ?

Qus:3 Why do we add back depreciation to net profit while calculating cash flow from operating activities.

Qus:4 How will you classify loans given by Birla Finance Ltd.? While preparing cash flow statement.

Qus:5 How will you classify deposits by customers in HDFC Bank while preparing cash flow statement.

Qus:6 Where will you show purchase of computer in cash flow statement ?

Qus:7 Give two examples of ‗ Significant non cash transactions ‗.

Qus:8 How will you classify loans given by Tata Manufacturing Company.

Qus:9 A company receives a dividend of Rs. 2 Lakhs on its investment in other company‘s share will it be Cash inflow from operating or investing activities in case of a.

(i) Finance Company.

(ii) Non-Finance Company.

Qus:10 How are various activities classified as per AS-3 (Revised) ?

Qus:11 Cash flow from operating Activities + Cash flow from Investing Activities + Cash flow from Financing Activities =……………………………………

Qus:12 What are the two methods which can be employed to calculate net cash flow from operating activities ?

Qus:13 Escorts Ltd. Engaged in the business of manufacturing tractors invested Rs.40,00,000 in the shares of a Car manufacturing Company. state with reason whether the dividend received on this investment will be cash flow from operating activities or Investing activities.

Qus:14 Modern Toys Ltd. Purchased a machinery of Rs.20,00,000 for manufacturing toys. State giving reason Whether the cash flow due to the purchase of machinery will be cash flow from operating activities, Investing activities or Financing activities ?

Qus:15 From the following profit or loss account find out the flow of cash from operating activities of Mohan Ltd.

Please refer to attached file for CBSE Class 12 Accountancy Cash Flow Statement Set B