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Test: Cash Flow Statements- Case Based Type Questions


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12 Questions MCQ Test Accountancy Practice Tests: CUET Preparation | Test: Cash Flow Statements- Case Based Type Questions

Test: Cash Flow Statements- Case Based Type Questions for Commerce 2022 is part of Accountancy Practice Tests: CUET Preparation preparation. The Test: Cash Flow Statements- Case Based Type Questions questions and answers have been prepared according to the Commerce exam syllabus.The Test: Cash Flow Statements- Case Based Type Questions MCQs are made for Commerce 2022 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Test: Cash Flow Statements- Case Based Type Questions below.
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Test: Cash Flow Statements- Case Based Type Questions - Question 1

Read the following information and answer the questions that follow:

Following are the opening and closing balances of Jayesh Ltd.:

Additional information:

During the year :

(a) Depreciation charged on Plant and Machinery was ₹ 36,000.

(b) A machine having a book value of ₹ 20,000 was sold for ₹ 16,000.

(c) Patents having a book value of ₹ 80,000 were sold for ₹ 1,10,000.

Q. What is the cash flow from investing activities?

Detailed Solution for Test: Cash Flow Statements- Case Based Type Questions - Question 1

Test: Cash Flow Statements- Case Based Type Questions - Question 2

Read the following information and answer the questions that follow:

Following are the opening and closing balances of Jayesh Ltd.:

Additional information:

During the year :

(a) Depreciation charged on Plant and Machinery was ₹ 36,000.

(b) A machine having a book value of ₹ 20,000 was sold for ₹ 16,000.

(c) Patents having a book value of ₹ 80,000 were sold for ₹ 1,10,000.

Q. What amount of machinery was purchased?

Detailed Solution for Test: Cash Flow Statements- Case Based Type Questions - Question 2 The amount of machinery purchased was ₹76,000.
Test: Cash Flow Statements- Case Based Type Questions - Question 3

Read the following information and answer the questions that follow:

Following are the opening and closing balances of Jayesh Ltd.:

Additional information:

During the year :

(a) Depreciation charged on Plant and Machinery was ₹ 36,000.

(b) A machine having a book value of ₹ 20,000 was sold for ₹ 16,000.

(c) Patents having a book value of ₹ 80,000 were sold for ₹ 1,10,000.

Q. What amount of Sales proceeds of Plant and Machinery will be added/subtracted?

Detailed Solution for Test: Cash Flow Statements- Case Based Type Questions - Question 3

Test: Cash Flow Statements- Case Based Type Questions - Question 4

Read the following information and answer the questions that follow:

Following are the opening and closing balances of Jayesh Ltd.:

Additional information:

During the year :

(a) Depreciation charged on Plant and Machinery was ₹ 36,000.

(b) A machine having a book value of ₹ 20,000 was sold for ₹ 16,000.

(c) Patents having a book value of ₹ 80,000 were sold for ₹ 1,10,000.

Q. What amount of patents will be added/subtracted to get the cash flow from investment?

Detailed Solution for Test: Cash Flow Statements- Case Based Type Questions - Question 4

Test: Cash Flow Statements- Case Based Type Questions - Question 5

Read the following information and answer the given questions:

X Ltd. made a profit of ₹ 5,00,000 after consideration of the following items :

(i) Goodwill written off 5,000

(ii) Depreciation on Fixed Tangible Assets 50,000

(iii) Loss on Sale of Fixed Tangible Assets (Machinery) 20,000

(iv) Provision for Doubtful Debts 10,000

(v) Gain on Sale of Fixed Tangible Assets (Land) 7,500

Additional information :

Q. Which of the following items will adjust to Net Profit before Tax?

Detailed Solution for Test: Cash Flow Statements- Case Based Type Questions - Question 5 It is a non-operating item. Non-operating income is the portion of an organization's income that is derived from activities not related to its core business operations. It can include items such as dividend income, profits, or losses from investments, as well as gains or losses incurred by foreign exchange and asset write-downs.
Test: Cash Flow Statements- Case Based Type Questions - Question 6

Read the following information and answer the given questions:

X Ltd. made a profit of ₹ 5,00,000 after consideration of the following items :

(i) Goodwill written off 5,000

(ii) Depreciation on Fixed Tangible Assets 50,000

(iii) Loss on Sale of Fixed Tangible Assets (Machinery) 20,000

(iv) Provision for Doubtful Debts 10,000

(v) Gain on Sale of Fixed Tangible Assets (Land) 7,500

Additional information :

Q. What will be the amount of Trade payables added to get the Cash flow from operations?

Detailed Solution for Test: Cash Flow Statements- Case Based Type Questions - Question 6 ₹51,000 − ₹30,000 = ₹21,000
Test: Cash Flow Statements- Case Based Type Questions - Question 7

Read the following information and answer the given questions:

X Ltd. made a profit of ₹5,00,000 after consideration of the following items :

(i) Goodwill written off 5,000

(ii) Depreciation on Fixed Tangible Assets 50,000

(iii) Loss on Sale of Fixed Tangible Assets (Machinery) 20,000

(iv) Provision for Doubtful Debts 10,000

(v) Gain on Sale of Fixed Tangible Assets (Land) 7,500

Additional information :

Q. How will goodwill written off be adjusted in the cash flow statement?

Detailed Solution for Test: Cash Flow Statements- Case Based Type Questions - Question 7 It is a non-cash item and should not form a part of cash flow.
Test: Cash Flow Statements- Case Based Type Questions - Question 8

Read the following information and answer the given questions:

X Ltd. made a profit of ₹ 5,00,000 after consideration of the following items :

(i) Goodwill written off 5,000

(ii) Depreciation on Fixed Tangible Assets 50,000

(iii) Loss on Sale of Fixed Tangible Assets (Machinery) 20,000

(iv) Provision for Doubtful Debts 10,000

(v) Gain on Sale of Fixed Tangible Assets (Land) 7,500

Additional information :

Q. What amount of Trade Receivables will be subtracted from the Cash flow Statement to get Cash flow from operations?

Detailed Solution for Test: Cash Flow Statements- Case Based Type Questions - Question 8 ₹78,800 − ₹52,000 = ₹26,800
Test: Cash Flow Statements- Case Based Type Questions - Question 9

Read the following information and answer the given questions:

Krishika an alumni of IIM Ahmedabad initiated her startup Krishika Ltd. in 2018. The profits of Krishika Ltd. in the year 2019-20 after all appropriations was ₹ 31,25,000. This profit was arrived after taking into consideration the following items:

Additional information :

Q. Operating profit before working capital changes will be ₹ _______ .

Detailed Solution for Test: Cash Flow Statements- Case Based Type Questions - Question 9 Operating profit before Working Capital changes = Net Profit before tax − Gain on sale of Fixed tangible assets + Goodwill written off

= ₹ 44,37,500 − ₹ 12,50,000 + ₹ 7,80,000

= ₹ 39,67,500

Test: Cash Flow Statements- Case Based Type Questions - Question 10

Read the following information and answer the given questions:

Krishika an alumni of IIM Ahmedabad initiated her startup Krishika Ltd. in 2018. The profits of Krishika Ltd. in the year 2019-20 after all appropriations was ₹ 31,25,000. This profit was arrived after taking into consideration the following items:

Additional information :

Q. Cash flow from Operating Activities will be ₹ ___________.

Detailed Solution for Test: Cash Flow Statements- Case Based Type Questions - Question 10 Cash flow from Operating Activities = Cash from Operating Activities before tax – Tax paid

= ₹ 35,57,500 − ₹ 4,37,500 = ₹ 31,20,000

Test: Cash Flow Statements- Case Based Type Questions - Question 11

Read the following information and answer the given questions:

Krishika an alumni of IIM Ahmedabad initiated her startup Krishika Ltd. in 2018. The profits of Krishika Ltd. in the year 2019-20 after all appropriations was ₹ 31,25,000. This profit was arrived after taking into consideration the following items:

Additional information :

Q. Net Profit before Tax will be ₹ ____________.

Detailed Solution for Test: Cash Flow Statements- Case Based Type Questions - Question 11 Net Profit before Tax = Profit after all Appropriations + Provision for Taxation + Transfer to General Reserve = ₹ 31,25,000 + ₹ 4,37,000 + ₹ 8,75,000

= ₹ 44,37,500

Test: Cash Flow Statements- Case Based Type Questions - Question 12

Read the following information and answer the given questions:

Krishika an alumni of IIM Ahmedabad initiated her startup Krishika Ltd. in 2018. The profits of Krishika Ltd. in the year 2019-20 after all appropriations was ₹ 31,25,000. This profit was arrived after taking into consideration the following items:

Additional information :

Q. Cash from operating activities before tax will be ₹__________.

Detailed Solution for Test: Cash Flow Statements- Case Based Type Questions - Question 12

Cash from Operating Activities before Tax = Operating Profit before Working Capital changes − Increase in Current Assets + Increase in Current liabilities = ₹ 39,67,500 − ₹ 2,50,000 − ₹ 2,30,000 − ₹ 30,000 + ₹ 1,00,000 = ₹ 35,57,500

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