The document contains 20 multiple choice questions and fill-in-the-blank questions about accounting concepts related to cash flow statements. It tests understanding of key elements of the cash flow statement such as operating, investing and financing activities, and how various common business transactions would be classified. It also contains questions about accounting treatments for items like depreciation, dividends, and the calculation of cash flows from financial statements.
The document contains 20 multiple choice questions and fill-in-the-blank questions about accounting concepts related to cash flow statements. It tests understanding of key elements of the cash flow statement such as operating, investing and financing activities, and how various common business transactions would be classified. It also contains questions about accounting treatments for items like depreciation, dividends, and the calculation of cash flows from financial statements.
The document contains 20 multiple choice questions and fill-in-the-blank questions about accounting concepts related to cash flow statements. It tests understanding of key elements of the cash flow statement such as operating, investing and financing activities, and how various common business transactions would be classified. It also contains questions about accounting treatments for items like depreciation, dividends, and the calculation of cash flows from financial statements.
The document contains 20 multiple choice questions and fill-in-the-blank questions about accounting concepts related to cash flow statements. It tests understanding of key elements of the cash flow statement such as operating, investing and financing activities, and how various common business transactions would be classified. It also contains questions about accounting treatments for items like depreciation, dividends, and the calculation of cash flows from financial statements.
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Ch- 16: MCQs CASH FLOW STATEMENT
Q1 From the following particulars, what will be the amount of provision for tax made during the year?
Provision for Taxation
31.3.2011 50,000
31.3.2012 40,000
The Company paid taxes Rs 45,000 for the year 2011-2012.
(a) Rs 45,000
(b) Rs 35,000
(c) Rs 40,000
(d) Rs 50,000
Q2. From the following information, the outflow of cash for the purchase of machinery will be:
Written down value of machinery as on 1.4.2011 - Rs 5,00,000
Written down value of machinery as on 31.3.2012 -Rs7,00,000
Depreciation on machinery charged during the year Rs 60,000
Machinery having book value Rs 25,000 sold for Rs 20,000
(a) Rs 2,70,000
(b) Rs 2,80,000
(c) Rs 2,75,000
(d) Rs 2,85,000
Q3. Which of the following transactions would result inflow of cash:
(a) Cash withdrawn from Bank for office use.
(b) Purchase of machinery worth Rs 2,00,000 and issued shares in consideration thereof.
(c) Sale of furniture for Rs 3,000 to Mr. Mohan.
(d) Cash received from Debtors Rs 6,000
Q4 . From the following information find the cash generated from operations:
Operating Profit before working capital changes 1,00,000
Depreciation on fixed assets 15,000
Loss on sale of Furniture 5,000
Interest paid 13,000
Dividend received Increase in debtors 8,000
Decrease in stock 7,000
Increase in creditors 4,000
(a) Rs 1,18,000
(b) Rs 1,24,000
(c) Rs 1,03,000
(d) Rs 1,00,000
Q5Which of the following transactions would not create a cash flow ?
(a) A company purchased some of its own stock from a stockholder
(b) Amortization of a patent
(c) Payment of a Cash Dividend
(d) Sale of equipment at book value
Q6. Bank Overdraft and cash credit are to be treated as:
(a) Cash Equivalents
(b) Non Current Liabilities
(c) Investing Activity
(d) Short Term Borrowings
Q7. From the following information find out the inflow of cash
Office Equipment `
31st March, 2014 60,000
31st March, 2013 1,00,000
` Additional Information:
Depreciation for the year 2013-14 is Rs 7,000, Purchase of office Equipment during the year Rs 10,000 Part of Office Equipment sold at a profit of Rs 6,000
(a) Rs 48,000
(b) Rs 49,000
(c) Rs 44,000
(d) Rs 33,000 Q8 From the following information find out the cash flow from financing activities.
Liabilities
Proposed Dividend
31st March 2013 20,000
31st March 2014 15,000
Additional Information: Equity Share Capital raised 3,00,000 10% Debentures Redeemed 1,00,000 Preference Share capital Redeemed 50,000. Interim Dividend paid during the year 20,000
(a) Rs 1,25,000
(b) Rs 1,00,000
(c) Rs1,50,000
(d) Rs 1,30,000
Q9Declaration of Final Dividend would result in ___
(a) Outflow in Financing activities.
(b) Outflow in Operating activities.
(c) Inflow in Operating activities.
(d) No Flow of cash.
Q10. From the following information find out the cash outflow cash outflow from financing activities.
Year - I Year - II
Proposed Dividend Rs 1,20,000 1,50,000
12% Debentures Rs 4,00,000 5,00,000
Additional Information: Additional Debentures were issued at the end of year.
Interim Dividend paid 50,000.
Preference Share capital issued Rs 2,00,000.
(a) Rs 82,000
(b) Rs 2,08,000
(c) Rs 2,38,000
(d) Rs 2,48000
Q11 From the following information find out the inflow of cash
31st March, 2015 31st March, 2014
Plant and Machinery Account ` Rs6,00,000 Rs 4,50,000
Accumulated Depreciation ` Rs1,60,000 Rs 1,00,000
Additional Information: Depreciation for the year 2014‐15 is Rs 80,000. During the year Machinery was Purchased for Rs 2,50,000 and a part of asset was sold at a profit of Rs 40,000.
(a) Rs 1,20,000;
(b) Rs 1,00,000;
(c) Rs 80,000;
(d) Rs40000
Q12 Which of the following transactions would result in neither cash inflow nor outflow of cash and cash equivalents.
a.Issue of share capital
b.Issue of bonus shares
redemption of debentures
d.Trade recievable realized.
Q13 Gain on sale of tangible current asset is an
a.Operating activity
B.Investing activity
c.Financing activity
d.Cash and Cash Equivalents
Q14 Interest collected by an automobile company selling a car on instalment basis will be classified as
a.Investing activity
b.Operating activity
C.Financing activity
d.Cash and cash equivalents
Q15 A decrease in outstanding expense would result in
a.Decrease in cash balance
b.Increase in cash balance
c.Unaltered
d.Would change the current liabilities.
Q16 Pick the odd one out
a.Long term borrowings
b.Reserves and surplus
c.Share capital
d.Public deposits.
Q17 Dividend received by Atal Pharma Limited will be a i.)………………………for the organization .and will be classifies as ii.)…………………activity.
a.Inflow,investing
b.Inflow,financing
c.Outflow ,financing
d.Inflow,Operating
Q18 Expenses paid in advance at the end of the year are i…….in ……ii activities while preparing cash flow statement
a.Added,Operating
b.Subtracted,Operating
c.Added,Investing
d.Subtracted,Investing
Q19 Gain on sale of tangible non current asset is an
a.Operating activity
B.Investing activity
c.Financing activity
d.Cash and Cash Equivalents
Q20 Which of the following shall be considered as an outflow of cash in cash flow statement.
a.Decrease in Public Deposits
b.Issue of share capital
c.Increase in accounts payable
d.Decrease in accounts receivables.
Fill in the Blanks
1.The basis of Cash Flow Statement is __________________
2.Debentures issued for consideration other than cash are not shown in the Cash Flow Statement because ______________is not received against the issue.
3.Loss on issue of debentures written off is shown by way of deduction from_________________ of the debentures.
4.Patents purchased and completely amortized in the year of purchase is added under_____ ________and shown as an outflow under____________
5.Purchase of securities by a non- finance company is ______________
State True of False
1.Gratuity paid to a retiring employee is an Operating activity.
2.Issue of Bonus shares is shown as a financing activity.
3.Shares issued to promoters in consideration of their services are shown as a financing activity.
4.Operating activities are principal revenue producing activities of an enterprise and those activities that are not investing or financing activities.
5.Buy Back of shares is an extraordinary item for Financing activity.
ANSWER KEY
Cash Flow Statement
Ques No 1 2 3 4 5 6 7 8 9 10 Ans b d d c b d b b
Ques No 11 12 13 14 15 16 17 18 19 20 Ans A B A d B a a a
Fill in the Blanks
Ques No 1 2 3 4 5 Ans Cash Cash Face Operating, Investing Basis value Investing
