CBSE 12th Accountancy - Cash Flow Statement Three Marks Questions | QB365

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CBSE 12th Accountancy - Cash Flow Statement Three Marks Questions

Published on: 30/09/2019

Cash Flow Statement

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Std: 12th Standard CBSE - Accountancy

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Questions:

Generic 3

7 x 3 = 21

What are the objectives of cash flow statement are:

Stete the category of the folowing items for a financial as well as nonfinancial company?
(1) Dividend recevied
(2) Dividened paid
(3) Interest paid
(4) Interest received

What do you mean by cash equivalent?

State one objective of cash flow statement.

From the following information, calculate cash flow from investing activities and financing activities.

Particulars	Opening (Rs.)	Closing(Rs.)
Furniture (At cost)	40,000	56,000
Accumulated Depreciation on Furniture	12,000	18,000
Capital	2,00,000	2,80,000
Loan from Bank	50,000	30,000

During the year, furnitures costing Rs.8,000 was sold at a profit of Rs.6,000.Depreciation on furniture charged during the year amounted to Rs.10,000.

Which values are reflected by a business in preparing a cash flow statement?

What is meant by cash flow statement?

1 Marks

5 x 1 = 5

Under which type of activity will you classify 'issuing 9% debentures' while preparing cash flow statement.

Give an example of a transaction, a part of which is classified or shown as investing activity and another part is classified as financing activity.

10.

Under which type of activity will you classify 'commission and royalty received' while preparing cash flow statement?

11.

Declaration of final dividend would result into inflow, outflow or no flow of cash.Give your answer with reason.

12.

State whether the payment of cash to creditors will result in inflow, outflow or no flow of cash.

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Answers Key:

Generic 3

7 x 3 = 21

(i) To ascertain the specific sources(i.e.,operating/investing financing activities) of cash and cash equivalents by an enterprise.
(ii) To ascertain the specific uses (i.e.,operating/investing/financing activities) of cash and equivalent used by an enterprise.
(iii) To ascertain the net change in cash and cash equivalents (sources minus uses of cash and equivalens) between the date of two Balance Sheets.

	Financial company	non-finaanical company
(1) Dividened received	operating activity	investing activity
(2) Dividened paid	financing acitivity	financing activity
(3) Interest paid	operating activity	financing activity
(4) Interest received	operating activity	investing activity

Short-term highly liquid investments which are readily convertible into known amount of cash and which are subject to an insignificant risk of change in the value.

Helpful for short planning, for preparing cash budget.

Cash flow from financing activities=Rs.60,000; Cash used in investing activities=Rs.(14,000)

Values reflected by a business in preparing cash flow statement are:
(i) Respect for law Business shows respect for law by preparing cash flow statement.
(ii) Cash management Business works towards better cash management by preparing cash flow statement.
(iii) Proactive approach Cash flow statement helps in anticipating future cash flows in advance and thus enables proactive attitude towards possible future contingencies.

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.

1 Marks

5 x 1 = 5

Financing activity.

Payment of instalments of an asset purchased on hire-purchase basis.The instalment has two components, i.e. principal and interest.Principal is classified as an investing activity and interest is classified as financing activity.

10.

Commission and royalty received is an operating activity

11.

No flow of cash as final dividend is declared only, not yet paid.

12.

Outflow of cash