NCERT Solutions for Class 6, 7, 8, 9, 10, 11 and 12. (ii)Useful in efficient cash management. 3.Dividend paid by a financial company is classified under which type of activity, while preparing cash flow statement? The 12-month cash flow statement is one of the three key financial statements for a business. Additional Information 42.State with reason whether charging of depreciation on furniture will result into inflow, outflow or no flow of cash. (i) Building purchased. (All India 2011) Dividend received is considered as an operating activity when company is a financing or investing company. Earnings per share 16. 34.Give one difference between an operating activity and a financing activity. Two investing activities which result into outflow of cash are: (All India2010) Ans. (i) Cash flow from operating activities. Ans. (ii)Cash flow from investing activities. Chapter 3 Tools for Financial Analysis: Comparative Statements. Ans. Depreciation provided on tangible assets during the year amounted to Rs 2,00,000.Prepare a cash flow statement. of accounting whereas cash flow statement is prepared on cash basis. (v) Cash flow statement is not a substitute for income statement. (All India 2014 (C), 2009) Accountancy MCQs for Class 12 Chapter Wise with Answers PDF Download was Prepared Based on Latest Exam Pattern. Ans. Shaalaa has a total of 60 questions with solutions for this chapter in Class 12 Accountancy. Ans. (All India 2008) As per Accounting Standard-3 (Revised) the changes resulting in the flow of cash & cash equivalent arises on account of three types of activities i.e., Ts_grewal II_(2018) Solutions for Class 12 Commerce Accountancy Chapter 5 Cash Flow Statement are provided here with simple step-by-step explanations. cash flow statement to assess the impact of these activities on the financial position of an enterprise and also on its cash and cash equivalents. 45.State whether ‘conversion of debentures into equity shares’ by a financing company will result into inflow, outflow or no flow of cash? 30.Under which type of activity will you classify ‘issuing 9% debentures’ while preparing cash flow statement? Cash Flow Statement. Analysis Of Financial Statements Ts Grewal 2019 Solutions for Class 12 Commerce Accountancy Chapter 5 Cash Flow Statement are provided here with simple step-by-step explanations. Events after the balance sheet date Statutory Auditor’s Report – Report on the Audit of the Consolidated Financial Statements (iii)Ignores non-cash transactions. (All India 2013) Ans. (i)Depreciation on fixed assets Rs 20,000. Chapter 5 Accounting Ratios. Solved Cbse Class 12 Accountancy Full Project(Comprehensive Project, Ratio Analysis and Cash Flow Statements with Conclusion) 2,031,056 views. (vii)Premiums and claims received (viii) Premiums and claims paid As per Accounting Standard-3 (Revised) the changes resulting in the flow of cash & cash equivalent arises on account of three types of activities i.e., Cash Flow Statement Cash flow statement is a statement showing the changes in financial position of a business concern during different intervals of time in terms of cash and cash equivalents. Operating activity is the principal revenue producing activity of an enterprise whereas, investing activity includes the acquisition and disposal of fixed assets. 6. (Delhi 2008) How Cash Flow is Calculated? However, if a business is profitable, it is more likely to have a positive cash flow. Ans. (i)Income tax paid during the year Rs 3,500. Rs. 56.From the following information prepare a ‘cash flow statement’ for Ronak Ltd. Balance sheet of Ronak Ltd as at 31st March, 2011 and 2012. Ans. (All India 2013; HOTS) 2020-21. Students can solve NCERT Class 12 Accountancy Comparative Statements MCQs Pdf with Answers to know their preparation level. 37.Give one transaction which may result into outflow of cash and one which may result into no flow of cash. (All India 2008) No flow of cash as final dividend is only declared, not yet paid. ... 2019 . 1. Ans. 12/31/2017. (Delhi 2013; hots) 26.List any two financing activities that will result into outflow of cash. 5 ratings • 1 review. charged was Rs 4,000, was sold for Rs 5,000. 2.Why is separate disclosure of cash flow from investing activities important while preparing cash flow statement? (Delhi 2011, Modified) (Delhi 2012) Free courses. Not a substitute for Balance Sheet: Cash flow statement do not show the financial position of the enterprise and therefore, cannot be used as a substitute for Balance Sheet. (Delhi 2013) In this course we will discuss what is Cash Flow Statement, how to prepare Cash Flow Statement, how to deal with different adjustments. A cash flow statement is a financial statement that provides aggregate data regarding all cash inflows a company receives from its ongoing operations and external investment sources. 33.Interest received on debentures would result into inflow, outflow or no flow of cash. If you have any query regarding NCERT Solutions for Class 12 Accountancy Part II Chapter 6 Cash Flow Statement, drop a comment below and we will get back to you at the earliest. (All India 2014,2014 c, 2011) The statement of cash flows is one of the components of a company's set of financial statements, and is used to … Ans. Chapter 6 Cash Flow Statement (As per AS – 3 Revised) (iv) No adherence of basic accounting principles. It is simply a movement between two components of cash and cash equivalents. The Revised Accounting Standard-3 has made it mandatory for all listed companies to prepare and present a cash flow statement along with other financial statements on annual basis. Ans. Receipt of cash from a non-cash item is termed as ‘cash inflow’, while cash payment in respect of such item is termed as ‘cash outflow’. Ans. (All India 2014) Discount received on making payment to suppliers will result in no flow of cash. Limitations of Cash Flow Statement 55.From the following balance sheet of BCR Ltd as at 31st March, 2010 and 2011. (ii) Cash proceeds from issue of debentures. Ans. 1.Cash Flow Statement Cash flow statement is a statement showing the changes in financial position of a business concern during different intervals of time in terms of cash and cash equivalents. 4 views 1 pages. 1. 9. 5.Classification of Business Activities Accounting Standard-3 (Revised) requires that the changes resulting in inflows and outflows of cash and cash equivalents will be classified into following three activities: The cash flow statement (CFS) measures how well a company manages its cash position, meaning how well the company generates cash to pay its … 39.When is dividend received considered as an operating activity? (All India 2011) ‘Withdrawal of cash from bank’ does not result in cash flow. Also, it is not possible to compute net profit or loss from the cash flow statement. Log in Sign up. Cash Flow Statement Presentation By: • Ahmed Muhammad Masood Niazi straight from Mianwali • Saqib Tariq CHAUDHRY from Muniawala • Saad Javed Satti from Kotli Sattiyan • Mirza Umer Baig from Jeddah` • Mian Haider Ali Shah from AKORA khattak • Ayaz Tariq from MK Such as by adding or deducting differences in expenses, revenue, credit transactions, and expenses, from one period to the next.It is essential to make adjustments because non-cash things are evaluated with net income (income statement) and total assets and liabilities (balance sheet). Cash flow is calculated by changing a few things in the net income of a company. Commission and royalty received is an operating activity. Telematics presentation in collaboration with the University of Stellenbosch During the year, Rs 1,40,000 depreciation was charged on fixed assets. (v)Used for assessment of cash flow from various activities, viz operating, investing and financing activities. Class 12 Accountancy Revision Notes Chapter 5 Cash flow statement Meaning: It is a statement that shows flow (Inflow or outflow) of cash and cash equivalents during a given period of time. (i)Depreciation charged on fixed assets for the year 2009-2010 was Rs 20,000. (iii)Cash flow from financing activities. myCBSEguide has just released Chapter Wise Question Answers for class 12 Accountancy. Cash flows are classified and presented into operating activities (either using the 'direct' or 'indirect' method), investing activities or financing activities, with the latter two categories generally presented on a gross basis. 38.State why non-cash transactions are ignored while preparing a cash flow Statement? (ii) Useful inefficient cash management. 44.Dividend received by a finance company will come under which activity while preparing a cash flow statement? Ans. (ii)During the year a machine included in fixed assets costing Rs 1,20,000 was purchased and another machine of the book value of Rs 30,000 was sold at a loss of Rs 2,000. (ii) Investments purchased. The Revised Accounting Standard-3 has made it […] What is the Cash Flow Statement Indirect Method? Two financing activities that result into outflow of cash are: Delhi 2012) There chapter wise Practice Questions with complete solutions are available for download in myCBSEguide website and mobile app. All the solutions of Cash Flow Statements - Accountancy explained in detail by experts to help students prepare for their CBSE exams. Accountancy. Investing activity. By \"cash\" we mean both physical currency and money in a checking account. Kajal Garg. Cash flow arising from financing activities are exhibited as follows: Particulars. 25.’Payment of dividend’ will come under which type of activity while preparing a cash flow statement? 32.Under which type of activity will you classify ‘proceeds from sale of machinery’ while preparing cash flow statement? A cash flow statement tells you how much cash is entering and leaving your business. Ans. Ans. Free PDF Download of CBSE Accountancy Multiple Choice Questions for Class 12 with Answers Chapter 12 Comparative Statements. It will result in outflow of cash. (i)Useful in short-term financial planning. Interest received is never considered as a financing activity. (All India 2010) Problem 1: From the following summary of Cash Account of X Ltd., prepare Cash Flow Statement for the year ended 31st March 2007 in accordance with AS-3 using the direct method. (All India 2011) 51.Prepare a cash flow statement on the basis of the information given in the balance sheet of Simco Ltd as at 31st March, 2013 and 2012 Ans. Transactions with related parties 19. (Delhi 2009; All India 2009) (Delhi; All India 2009) Cash flow is the driving force behind the operations of a business. (ii) Cash flow from investing activities. ... Unit 5: Cash Flow Statement. 11.State with reason whether ‘purchase of fixed asset on long-term deferred payment’ would result in inflow, outflow or no flow of cash. Ans. Receipt of cash from an item other than cash and cash equivalents is termed as ‘cash inflow’ while cash payment in respect of such item is termed as ‘cash outflow’. Such as by adding or deducting differences in expenses, revenue, credit transactions, and expenses, from one period to the next.It is essential to make adjustments because non-cash things are evaluated with net income (income statement) and total assets and liabilities (balance sheet). For a Finance Company The income statement shows that last year’s profits were $1,000. ... 12/31/2019. (Delhi 2014,2012,2011C; All India 2014,2012) (i) Cash proceeds from sale of investments. The statement of cash flows, also called the cash flow statement, is the fourth general-purpose financial statement and summarizes how changes in balance sheet accounts affect the cash account during the accounting period. Cash Flow Statement Class 12 Accountancy Practice Questions. Additional Information (ii)Loss on sale of furniture Rs 1,000. 40.State why cash flow statement is not a substitute for income statement? DK Goel Accountancy Class 12 is contemplated to be the most helpful study resource for the students pursuing their Class 12. (i)During the year Rs 50,000 depreciation was charged on fixed assets. What is the Cash Flow Statement Indirect Method? ‘Cash flow’ implies inflow and outflow of cash and cash equivalents. Cash Flow Statement Presentation By: • Ahmed Muhammad Masood Niazi straight from Mianwali • Saqib Tariq CHAUDHRY from Muniawala • Saad Javed Satti from Kotli Sattiyan • Mirza Umer Baig from Jeddah` • Mian Haider Ali Shah from AKORA khattak • Ayaz Tariq from MK Financing activity. The questions provided in TS Grewal-II (2019) Books are prepared in accordance with CBSE, thus holding higher chances of appearing on CBSE question papers. Updated November 20, 2019 The cash flow statement is one of the three financial statements a business owner uses in cash flow analysis. 242 Accountancy : Company Accounts and Analysis of Financial Statements 6.5.1 Cash from Operating Activities Ans. (v)Cash flow statement is not a substitute for income statement. (i)Based on historical cost principle. Ans. Non-cash transactions are ignored while preparing a cash flow statement because cash flow statement shows flow of cash and cash equivalents during a given period. Prepare the cash flow statement. 52.Following is the balance sheet of Wisben Ltd as on 31st March, 2012 These solutions for CBSE Class 12 are outlined keeping in mind the current CBSE syllabus, hence possessing a great chance of appearing in the board examinations. (Delhi 2010 c) Additional Information CBSE Class 12. ... CBSE Class 12-commerce Accountancy Cash Flow Statements. 50.State whether the ‘purchase of goods on credit’ will result into inflow, outflow or no flow Of cash. Additional Information As the students would have learnt the basic fundamentals about the subject of accountancy in Class 11, this curriculum for Class 12 is a continual part of it; it explains the concepts in a great way. (Delhi 2012; Modified) Receipt of cash from a non-cash item is termed as ‘cash inflow’, while cash payment in respect of such item is termed as ‘cash outflow’. Ans. Ans. (ii)Dividend paid during the year was 10% per annum. ‘Deposit of cash into bank’ does not result in cash flow. Pricing. The Cash Flow Statement, or Statement of Cash Flows, summarizes a company's inflow and outflow of cash, meaning where a business's money came from (cash receipts) and where it went (cash paid). (iii) Cash flow from financing activities. (i)Debentures were issued on 1st April, 2011. 22.While preparing cash flow statement which type of activity is, ‘payment of cash to acquire shares by a trading company’? 67.From the following balance sheet of EF Ltd as on 31st March, 2006 and 31st March, 2007, prepare the cash flow statement Cash Flow from Operating Activities Operating activities are the principal revenue producing activities of the enterprise and other activities that are not investing or financing activities. Accounting Project Presentation - Cash Flow Statement. A Cash flow statement shows inflow and outflow of cash and cash equivalents from various activities of a company during a specific period. Get access. Additional Information Save. Ans. The items in the cash flow statement are not all actual cash flows, but “reasons why cash flow is different from profit.” Depreciation expense Depreciation Expense Depreciation expense is used to reduce the value of plant, property, and equipment to match its use, and wear and tear, over time. Proceeds from sale of investments is an investing activity. (vi)Sale of securities (vii) Purchase of securities Ans. 21.While preparing cash flow statement which type of activity is, ‘payment of cash to acquire debenture by an investment company’? Included in fixed assets was a piece of machinery costing Rs 70,000 on which depreciation charged was Rs 40,000 and it was sold for Rs 30,000. Quickly generate your cash flow statement with QuickBooks, and you’ll get a clear view of your cash flow for any time period. Disposal of fixed assets for the year was 10 % per annum 5,000 has been paid in during... Costing Rs 1,00,000 after considering the following balance sheet of JN Ltd as 31st. 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