Test: Cash Flow Statement - 1


10 Questions MCQ Test Accountancy Class 12 | Test: Cash Flow Statement - 1


Description
Attempt Test: Cash Flow Statement - 1 | 10 questions in 10 minutes | Mock test for Commerce preparation | Free important questions MCQ to study Accountancy Class 12 for Commerce Exam | Download free PDF with solutions
QUESTION: 1

This a MCQ (Multiple Choice Question) based practice test of Chapter 10 - Cash Flow Statement of Accountancy of Class XII (12) for the quick revision/preparation of School Board examinations

Q  Rent Received is classified under:

Solution:

Rent received is classified under investing activities. It should be added while calculating cash flow from investing activities.

QUESTION: 2

Managerial accounting information is generally prepared for …

Solution:
QUESTION: 3

Computer Software is classified under:

Solution:

Computer software is an intangible asset for a company which is shown under fixed intangible assets.

QUESTION: 4

Provision for doubtful debts will appear under:

Solution:

While preparing companies balance sheet trade receivables are shown without deducting the provision for doubtful debts and it is shown in the liabilities side under short term provisions.

QUESTION: 5

Loose Tools are shown under:

Solution:

Loose tools are shown under current assets and sub heading Inventories. Loose tools are not meant for sale.

QUESTION: 6

Deferred Tax Liabilities are shown under:

Solution:

Deferred Tax liabilities are shown under Non-current Liabilities.

QUESTION: 7

Refund of income tax is the part of __________

Solution:

Refund of income tax is the part of operating activities.

QUESTION: 8

Sale of machinery is concerned with_________

Solution:

Sale of machinery is concerned with investing activities. It will be added to investing activities as proceeds from sale of machinery.

QUESTION: 9

Redemption of preference Shares is concerned directly with ______

Solution:

Redemption of preference shares is concerned with financing activities. It will be deducted in financing activities as cash used.

QUESTION: 10

Purchase of marketable securities will result in _________.

Solution:

Purchase of marketable securities will make no effect on cash and cash equivalents.

Reason: Cash going and marketable securities coming --- both are part of cash and cash equivalents. At the same time there is increase and decrease in cash and cash equivalents.

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