(Delhi 2014,2012,2011C; All India 2014,2012) (All India 2012; Modified) Additional Information Ans. (Delhi 2010 C) Accountancy, Business … Understand the cash flow statement for Visa Inc. (V), learn where the money comes from and how the company spends it. 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. (Delhi 2010) Ans. (All India 2014) 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. Ans. Old furniture written-off will result in no flow of cash. Chapter 14 Cash Flow Statement. Cash Flow Statement is prepared according to Accounting Standard - 3 (Revised). 6 Marks Questions Cash Cash comprises of cash in hand and demand deposits with the bank. There chapter wise Practice Questions with complete solutions are available for download in myCBSEguide website and mobile app. Cash flow arising from financing activities are exhibited as follows: Previous Years’Examination Questions Solved Accounting Ratios with Balance Sheet(vertical) and Statement of Profit and Loss - Cbse Class 12 Accountancy Project Ans. Equity 18. There is no flow of cash by the issue of 9% debentures to the vendors for the purchase of machinery of Rs 50,000 because this transaction will not change the balance of cash and cash equivalents. 49.’Interest paid by an investment company’ will come under which activity while preparing a cash flow statement? Accounting Project Presentation - Cash Flow Statement. (All India 2010) 54.From the following balance sheet of JN Ltd as on 31st March, 2010 and 2011, prepare a cash flow statement. (ii)Dividend paid Rs 80,000. 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. ‘Withdrawal of cash from bank’ does not result in cash flow. An income statement shows both cash and non-cash items. DK Goel Accountancy Class 12 Solutions Vol 2 Chapter 6 Cash Flow Statement (As per AS – 3 Revised) which is outlined by expert Accountancy teachers from the latest version of DK Goel Accountancy Class 12 textbook solutions. (All India 2014,2014 c, 2011) (i)During the year Rs 50,000 depreciation was charged on fixed assets. 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. Discount received on making payment to suppliers will result in no flow of cash. I 2018 Solutions for class 12 (Delhi 2010) The Revised Accounting Standard-3 has made it […] Guarantees 20. Commission and royalty received is an operating activity. These solutions for Class 12 are outlined keeping in mind the current CBSE syllabus, hence possessing a great chance of appearing in the board examinations. 20.Under which type of activity will you classify ‘commission and royalty received’while preparing cash flow statement? It will result in outflow of cash. Exams are coming! Ans. (Delhi 2010 c) (ii) Interest paid on debentures. 28.Name any two investing activities that result into inflow of cash. Ans. 60.From the following balance sheet and additional information of Good Wood Co. you are required to prepare the cash flow statement as per AS-3 (Revised). 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). Interest received is never considered as a financing activity. (Delhi 2008) Dec 24, 2019 - Cash Flow Statement – CBSE Notes for Class 12 Accountancy CBSE NotesCBSE Notes AccountancyNCERT Solutions Accountancy 1. Ans. (Delhi 2011C; Modified) (Delhi 2013) Ts_grewal II_(2018) Solutions for Class 12 Commerce Accountancy Chapter 5 Cash Flow Statement are provided here with simple step-by-step explanations. Dividend paid. Ans. Kindly Sign up for a personalised experience. (iii)Helpful in formulation of business policies. (iv)Transfer to general reserve Rs 14,000. Cash flow is calculated by changing a few things in the net income of a company. 34.Give one difference between an operating activity and a financing activity. (v)Used for assessment of cash flow from various activities, viz operating, investing and financing activities. 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., Ans. (i) Cash proceeds from sale of investments. Ans. (i) Cash flow from operating activities. Ans. The 12-month cash flow statement is one of the three key financial statements for a business. Shaalaa has a total of 60 questions with solutions for this chapter in Class 12 Accountancy. There chapter wise Practice Questions with complete solutions are available for download in myCBSEguide website and mobile app. (v) Used for assessment of cash flow from various activities, viz operating, investing and financing activities. (All India 2008) Additional Information 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. 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 Financing activity. Investing activity. Ans. 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. What is the Cash Flow Statement Indirect Method? Loss on sale of equipment amounted to Rs 12,000. Free courses. 242 Accountancy : Company Accounts and Analysis of Financial Statements 6.5.1 Cash from Operating Activities 15.Under which type of activity will you classify ‘interest paid on long-term borrowings’ while preparing cash flow statement? 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 Operating activity is the principal revenue producing activity of an enterprise whereas, investing activity includes the acquisition and disposal of fixed assets. (Delhi 2012; Modified) NCERT Solutions for Class 6, 7, 8, 9, 10, 11 and 12. Depreciation provided on tangible assets during the year amounted to Rs 2,00,000.Prepare a cash flow statement. 59.From the following balance sheet and additional information of Good Wood Co, you are required to prepare the cash flow statement as per AS-3 (Revised). View AMZN net cash flow, operating cash flow, operating expenses and cash dividends. Prepare the cash flow statement(Delhi 2010 C; All India 2010; Modified) (All India 2013) Cash flow arising from financing activities are exhibited as follows: Ans. 12/31/2016. 5.Give the meaning of cash (All India 2014; Delhi 2011) (ii)Income tax Rs 5,000 has been paid in advance during the year. Chapter 3 Tools for Financial Analysis: Comparative Statements. (iv) Assists in preparation of cash budget. Prepare a cash flow statement Ans. (All India 2014,2011; Delhi 2014,2011 c) 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. Ans. (ii) Useful inefficient cash management. Cash flow is the driving force behind the operations of a business. 24.List any two investing activities which result into outflow of cash. The cash flow reflects the increase in income and expenses. Cash Flow from Investing Activities As per AS-3, investing activities are the acquisition and disposal of the long-term assets and other investments, not included in cash equivalents. Financial instruments 13. Ans. 2020-21. Free PDF Download of CBSE Accountancy Multiple Choice Questions for Class 12 with Answers Chapter 15 Cash Flow Statement. Separate disclosure of cash flows arising from financing activities is important because it is useful in predicting claims on future cash flows by providers of funds (both capital and borrowings) to the enterprise. Ans.The two financing activities that result into inflow of cash are: Ans. It implies movement in and movement out of cash and cash equivalents. Set yourself up for success The cash flow statement—along with the balance sheet and income statement—is one of the 3 key financial statements used to … (Delhi 2013) The Revised Accounting Standard-3 has made it … cash flow statement is to provide useful information about cash flows (inflows and outflows) of an enterprise during a particular period under various heads, i.e., operating activities, investing activities and financing activities. Students can solve NCERT Class 12 Accountancy Comparative Statements MCQs Pdf with Answers to know their preparation level. Students can solve NCERT Class 12 Accountancy Comparative Statements MCQs Pdf with Answers to know their preparation level. (All India 2013) ‘Cash from operating activities’ are the principal revenue producing activities of the enterprise and other activities that are not investing or financing activities. Ans. NCERT Solution For Class 12 Accountancy Chapter 6 – Cash Flow Statement provides us with an all-inclusive data to all the concepts. 80,000 depreciation was charged on fixed assets. Introduction. Search Class Notes. (ii)Loss on sale of furniture Rs 1,000. 44.Dividend received by a finance company will come under which activity while preparing a cash flow statement? Additional Information  7. 1. Get Cash Flow Statements, Accountancy Chapter Notes, Questions & Answers, Video Lessons, Practice Test and more for CBSE Class 10 at TopperLearning. We at BYJU’S provide DK Goel Solutions to assist students to comprehend all the theories in particular. (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. ‘Deposit of cash into bank’ does not result in cash flow. 10.Under which type of activity will you classify ‘dividend received by a finance company’ while preparing cash flow statement? 46.State whether ‘the payment of cash to creditors’ will result into inflow, outflow or no flow Of cash. 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). (All India 2011; Delhi 2011 C) the fourth general-purpose financial statement and summarizes how changes in balance sheet accounts affect the cash account during the accounting period Units/Topics • Meaning, objectives and preparation (as … 31.Declaration of final dividend would result into inflow, outflow or no flow of cash.Give your answer with reason. (iv) Moreover a cash flow statement is prepared to know about the requirenTent of cash in future. ‘Dividend paid by a manufacturing company’ is classified as a financing activity. (i) Building purchased. Interest paid on long-term borrowings is a financing activity. Ans. iv. (All India 2010) Accountancy MCQs for Class 12 Chapter Wise with Answers PDF Download was Prepared Based on Latest Exam Pattern. 16.State with reason whether ‘old furniture written-off’ would result into inflow/outflow or no flow of cash. Additional Information Download CBSE Class 12 Accountancy Syllabus 2019-20 (Revised & Reduced By 30%) in PDF format. (Compartment 2014) Outflow of cash Purchase of investments. 4.8. 18.Under which type of activity will you classify ‘proceeds from sale of patents’ while preparing cash flow statement? (i) Cash flow from operating activities. Login. Cash Flow Statement – CBSE Notes for Class 12 Accountancy. 25.’Payment of dividend’ will come under which type of activity while preparing a cash flow statement? Cash Equivalents Cash equivalents are ‘short-term highly liquid investments that are  readily convertible into known amount of cash and which are subjected to an insignificant risk of change in value’. Ans. (iii) Ignores non-cash transactions. Pricing. Additional Information Accounting Project Presentation - Cash Flow Statement. 3. 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. Choose Goal. (ii) A cash flow statement helps in determining the various causes for change in the cash balances during an accounting period. Get access. DK Goel Accountancy Class 12 is contemplated to be the most helpful study resource for the students pursuing their Class 12. (Delhi 2013; hots) 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. myCBSEguide has just released Chapter Wise Question Answers for class 12 Accountancy. View Class 3 September 12 2019 (1).pdf from MB 338 at Skidmore College. (ii) Investments purchased. 8.State with reason whether the issue of 9% debentures to the vendors for the purchase of machinery of Rs 50,000 will result into inflow, outflow or no flow of cash. A cash flow statement provides information about the historical changes in cash and cash equivalents of an enterprise by classifying cash flows into operating, investing and financing activities between the dates of two balance sheets. (All India2010) 12/31/2017. 58.From the following balance sheet of Vikas Ltd as at 31st March, 2009 and 2010. Additional Information There will be no flow of cash because depreciation on furniture is a non-cash expense. (All India 2011; Delhi 2008) Ans. 12.Under which type of activity will you classify ‘refund of income tax received’ while preparing the cash flow statement? All the solutions of Cash Flow Statements - Accountancy explained in detail by experts to help students prepare for their CBSE exams. It is classified under ‘financing activity’. 41.When is interest received considered as financing activity? (Delhi 2013) 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 myCBSEguide has just released Chapter Wise Question Answers for class 12 Accountancy. ... CBSE Class 12-commerce Accountancy Cash Flow Statements. 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: Chapter 1 Financial Statements of Companies (As per Schedule III) Chapter 2 Financial Statements Analysis. NCERT Solutions for Class 12 Commerce Accountancy Chapter 6 Cash Flow Statement are provided here with simple step-by-step explanations. 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. (ii)An interim dividend Rs 7,000 has been paid to the shareholders during the year. 1 Mark Questions (i)Income tax paid during the year Rs 4,500. (ii)Cash flow from investing activities. 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. (v) Cash flow statement is not a substitute for income statement. (All India 2009; Modified) It is simply a movement between two components of cash and cash equivalents. MCQ Questions for Class 12 Accountancy with Answers were prepared based on the latest exam pattern. 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’. (All India 2010) Question 5. (viii) Rent received      (ix) Rent paid. 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 2010) Amazon.com Inc. We hope the NCERT Solutions for Class 12 Accountancy Part II Chapter 6 Cash Flow Statement, help you. Accountancy MCQs for Class 12 Chapter Wise with Answers PDF Download was Prepared Based on Latest Exam Pattern. 9. Cash Flow from Financing Activities Financing activities are the activities which result in change in the size and composition of the owner’s capital (including preference share capital) and borrowings (including debentures) of the enterprise from other sources. Solved Cbse Class 12 Accountancy Full Project(Comprehensive Project, Ratio Analysis and Cash Flow Statements with Conclusion) 2,031,056 views. ‘Payment of dividend’ is classified as ‘financing activity’ while preparing a cash flow statement. 67.From the following balance sheet of EF Ltd as on 31st March, 2006 and 31st March, 2007, prepare the cash flow statement It is simply a movement between two components of cash and cash equivalents. It implies movement-in and movement-out of cash and cash equivalents. (ii) Cash proceeds form sale of investments. Ans. Investing activity. 37.Give one transaction which may result into outflow of cash and one which may result into no flow of cash. 7.State the meaning of cash flow statement. (iii)Cash flow from financing activities. (i) Redemption of debentures. (Delhi 2013) Ans. (ii)Dividend paid during the year was @12% per annum. 66.From the following balance sheet of XY Ltd as on 31st March, 2006 and 2007, prepare a cash flow statement A cash flow statement tells you how much cash is entering and leaving your business. Cash Equivalents Cash equivalents are ‘short-term highly liquid investments that are j readily convertible into known amount of cash and which are subjected to an insignificant risk of change in value’. The cash flow statement is a standard financial statement used along with the balance sheet and income statement. For a Finance Company The Central Board of Secondary Education (CBSE) is has scheduled to conduct class 12 Commerce exams from March 6, 2019. 242 Accountancy : Company Accounts and Analysis of Financial Statements 6.5.1 Cash from Operating Activities 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’. (ii) Based on secondary data. (Delhi 2009; All India 2009) 1. 45.State whether ‘conversion of debentures into equity shares’ by a financing company will result into inflow, outflow or no flow of cash? Ans. Get ready with unlimited notes and study guides! Ans. Ans.Two investing activities that result into inflow of cash are: (ii)A piece of machinery included in fixed assets costing Rs 10,000, on which depreciation (ii)Dividend paid during the year was 10% per annum. Additional Information (v)Cash flow statement is not a substitute for income statement. iv. For a Real Estate (Infrastructure) Company (All India 2013) Operating activity. Ans. Understand the cash flow statement for Alphabet Inc. (GOOGL), learn where the money comes from and how the company spends it. Corporate Financial Modeling & Decision Tools FIN 4510 – Fall 2019 Tuesdays and Thursdays 8:00 – 9:35 a.m. Class 3: 4. 3.Dividend paid by a financial company is classified under which type of activity, while preparing cash flow statement? Ans. 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. Ans. Chapter 5 Accounting Ratios. iii. of accounting whereas cash flow statement is prepared on cash basis. TS Grewal Solutions for Class 12 is considered to be the most helpful study resource for the students pursuing their Class 12. 12/31/2018. Kajal Garg. Tesla Inc. (iii) Helpful in formulation of business policies. Operating activity is the principal revenue producing activity of an enterprise whereas, financing activity are those activities which change the size and composition of owner’s equity and borrowings of an enterprise. 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