In NCERT Class 12 Accountancy Chapter 10, titled "Cash Flow Statement", students learn how to prepare and analyze a company’s cash flow statement. The chapter focuses on understanding cash inflows and outflows categorized under operating, investing, and financing activities. It also explains how cash flow statements help stakeholders assess a business's liquidity and financial health.
This article provides a comprehensive resource for exam preparation. It includes sample MCQs and subjective questions for CBSE and CUET, alongside downloadable PDFs of Class 12 Accountancy Chapter 10 MCQs and previous year questions for detailed practice of NCERT Class 12 Cash Flow Statement.
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NCERT Class 12 Accountancy Chapters
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Class 12 Accountancy Chapter 10 MCQs
This question bank includes previous years' CUET and CBSE MCQs, along with questions curated by subject experts. Below are 5 sample multiple-choice questions (MCQs) for Class 12 Accountancy Chapter 10: Cash Flow Statement. For the full set of 50 questions, download the PDF using the link provided below.
1- Cash Flow Statement of an enterprise helps to ascertain ____________.
(a) Liquidity (b) Solvency (c) Profitability (d) Turnover
2. Separate disclosure of cash flows from _________ activities is important because they represent the extent to which expenditure have been made for resources intended to generate future income and cash flows:
(a) Operating (b) Investing (c) Financing (d) Extraordinary
3. An investment normally qualifies as cash equivalent only when it has a short maturity, of say, ________ from the date of acquisition.
(a) Three months or more (b) Six months or less
(c) One year or less (d) Three months or less
4. An investment normally qualifies as cash-equivalent only when from the date of acquisition it has a short maturity period of:
(a) One month or less (b) Three months or less
(c) Three months or more (d) One year or less
5. An investment normally qualifies as cash-equivalent only when from the date of acquisition it has a short maturity period of:
(a) One month or less (b) Three months or less
(c) Three months or more (d) One year or less
Class 12 Accountancy Chapter 10 Subjective Questions Without Solutions
This question bank includes previous years' CBSE subjective questions (2 marks and above) without solutions, along with expert-curated questions. Below are 4 sample subjective questions for Class 12 Accountancy Chapter 10: Cash Flow Statement. To access all questions, download the PDF from the link provided below.
- State the objective of preparing 'Cash Flow Statement'.
(CBSE 2022, 2M)
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- State with reason, whether 'Redemption of Debentures' would result in inflow, outflow or no flow of cash while preparing Cash Flow Statement.
(CBSE 2022, 2M)
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- State whether the following transactions will result in inflow, outflow or no flow of cash while preparing cash flow statement:
(i) Issued bonus shares Rs. 5,00,000.
(ii) Interest received in cash from loans and advances Rs. 80,000.
(CBSE 2022, 2M)
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- What is meant by 'Cash Flow Statement'?
(CBSE 2022, 2M)
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Sub Areas of Chapter 10: Cash Flow Statement
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Chapter Name
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Sub Topics
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Cash Flow Statement
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10.1 Introduction
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10.2 Objectives of Cash Flow Statement
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10.3 Activities in Cash Flow Statement
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10.4 Operating Activities
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10.5 Investing Activities
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10.6 Financing Activities
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10.7 Methods of Preparing Cash Flow Statement
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10.8 Importance and Limitations of Cash Flow Statement
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Review of NCERT Class 12 Accountancy Chapter 10
In NCERT Class 12 Accountancy Chapter 10, "Cash Flow Statement," students learn the importance of tracking and categorizing cash inflows and outflows. This chapter helps students understand the financial health and liquidity of an organization.
Mastering this chapter equips students with the skills to analyze financial data and prepare cash flow statements. By practicing MCQs and subjective questions, students can enhance their understanding and prepare effectively for CBSE, CUET, and other competitive exams.
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