(Delhi 2013) These solutions for Cash Flow Statement are extremely popular among Class 12 Commerce students for Accountancy Cash Flow Statement Solutions come handy for quickly completing your homework and preparing for exams. 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. ACTG 2010 Lecture Notes - Lecture 12: Cash Flow Statement, Cash Flow. 30.Under which type of activity will you classify ‘issuing 9% debentures’ while preparing cash flow statement? A Cash flow statement shows inflow and outflow of cash and cash equivalents from various activities of a company during a specific period. Important: Cash flow statements can be presented using either of two methods: the direct or indirect method.The direct method is used more outside the US, while the indirect method is the preferred method within the US. (iii) A cash flow statement is also prepared to determine the liquidity position of the organisation. Ans. (i) Cash flow from operating activities. Ans. Objectives of Cash Flow Statement IAS 7 requires an entity to present a statement of cash flows as an integral part of its primary financial statements. During the year machine costing Rs 50,000 was sold for Rs 15,000. Dividend paid Rs 20,000. Investing activity. (ii)A piece of machinery included in fixed assets costing Rs 10,000, on which depreciation Ans. (i)Based on historical cost principle. Two investing activities which result into outflow of cash are: The farm’s cash flow for each quarter of the coming year and the total for the year is projected in columns 3-7. 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). Ans. 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 2010) A cash flow statement tells you how much cash is entering and leaving your business. There is no flow of cash because purchase of goods on credit will not affect cash. Operating activity. Additional Information However, if a business is profitable, it is more likely to have a positive cash flow. 22.While preparing cash flow statement which type of activity is, ‘payment of cash to acquire shares by a trading company’? During the year, equipment costing Rs 1,00,000 was purchased. Ans. Ans. 4. Class Notes. Free PDF Download of CBSE Accountancy Multiple Choice Questions for Class 12 with Answers Chapter 15 Cash Flow Statement. (Delhi 2009; All India 2009) (Delhi 2009c) (i) Cash proceeds from sale of building. Ans. 80,000 depreciation was charged on fixed assets. iv. Ans. 54.From the following balance sheet of JN Ltd as on 31st March, 2010 and 2011, prepare a cash flow statement. Depreciation provided on tangible assets during the year amounted to Rs 2,00,000.Prepare a cash flow statement. Free courses. (All India 2009; Modified) 17.Under which type of activity will you classify ‘proceeds from sale of investment’ while preparing cash flow statement? No flow of cash because no cash is involved in this transaction. 42.State with reason whether charging of depreciation on furniture will result into inflow, outflow or no flow of cash. Ans. Ans. 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. The cash flow reflects the increase in income and expenses. (ii)A piece of machinery included in fixed assets costing Rs 20,000 on which depreciation charged was Rs 8,000, was sold for Rs 10,000. Accounting Project Presentation - Cash Flow Statement. CBSE Notes CBSE Notes Accountancy NCERT Solutions Accountancy. Kindly Sign up for a personalised experience. Also, it is not possible to compute net profit or loss from the cash flow statement. 57.From the following balance sheet of Vijaya Ltd as at 31st March, 2009 and 2010. Ans. Ans. 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 Students can solve NCERT Class 12 Accountancy Comparative Statements MCQs Pdf with Answers to know their preparation level. 4.Limitations of Cash Flow Statement 45.State whether ‘conversion of debentures into equity shares’ by a financing company will result into inflow, outflow or no flow of cash? Ans. 12. 62.From the following balance sheet of Sewak Ltd as on 31st March, 2008 and 2009, Prepare cash flow statement. (Delhi 2010) Also, it is not possible to compute net profit or loss from the cash flow statement. (i)Income tax paid during the year Rs 3,500. (All India 2011; Modified) (iii) Cash flow from financing activities. (ii) Investments purchased. 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. 12.Under which type of activity will you classify ‘refund of income tax received’ while preparing the cash flow statement? An income statement shows both cash and non-cash items. (Delhi 2013) Corporate Financial Modeling & Decision Tools FIN 4510 – Fall 2019 Tuesdays and Thursdays 8:00 – 9:35 a.m. Class 3: Similar to a checking account statement, the cash flow statement shows … (All India 2008; Modified) Ans. (i)Depreciation charged on fixed assets for the year 2009-2010 was Rs 20,000. 29.State with reason whether ‘withdrawal of cash from bank’ will result into, inflow,outflow or no flow Of cash. 26.List any two financing activities that will result into outflow of cash. Ans. (All India 2011; Delhi 2011 C) 28.Name any two investing activities that result into inflow of cash. (AllIndia2013) Commission and royalty received is an operating activity. CBSE Class 12 Accountancy TS Grewal-II (2019) Solutions are created by experts of the subject, hence, sure to prepare students to score well. Ans. Cash flow is calculated by changing a few things in the net income of a company. 21.While preparing cash flow statement which type of activity is, ‘payment of cash to acquire debenture by an investment company’? (Delhi 2013) Get ready with unlimited notes and study guides! Annual cash flow by MarketWatch. iii. This chapter explains the meaning, purpose and preparation of Cash Flow Statements. (All India 2014,2011; Delhi 2014,2011 c) Operating activity. NCERT Solutions for Class 6, 7, 8, 9, 10, 11 and 12. CBSE Class 12. Cash flow represents only net cash inflow or outflow of cash. myCBSEguide has just released Chapter Wise Question Answers for class 12 Accountancy. Quickly generate your cash flow statement with QuickBooks, and you’ll get a clear view of your cash flow for any time period. Ans. The indirect method for the preparation of the statement of cash flows involves the adjustment of net income with changes in balance sheet accounts to arrive at the amount of cash generated by operating activities. View TSLA net cash flow, operating cash flow, operating expenses and cash dividends. There will be no flow of cash because depreciation on furniture is a non-cash expense. The Cash Flow Statement, or Statement of Cash Flows, summarizes a company's inflow and outflow of cash, meaning where a business's money came from (cash receipts) and where it went (cash paid). All the solutions of Cash Flow Statements - Accountancy explained in detail by experts to help students prepare for their CBSE exams. 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. Cash flow arising from financing activities are exhibited as follows: Previous Years’Examination Questions Get access. (iii) Ignores non-cash transactions. 9.What is meant by ‘cash from operating activities’? Ans. Guarantees 20. Ans. How Cash Flow is Calculated? (Foreign 2011; HOTS) Ans. What is the Cash Flow Statement Indirect Method? Ans. NCERT Solution For Class 12 Accountancy Chapter 6 – Cash Flow Statement provides us with an all-inclusive data to all the concepts. Question 5. Ans. 4.8. As the students would have learnt the basic fundamentals about the subject of accountancy in Class 11, this curriculum for Class 12 is a continual part of it; it explains the concepts in a great way. (ii)Dividend paid during the year was 10% per annum. (i)Debentures were issued on 1st April, 2011. 64.From the following balance sheet of Samta Ltd as at 31st March, 2007 and 2008, prepare the cash flow statement It implies movement in and movement out of cash and cash equivalents. The statement usually breaks down the c… Ans. 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: 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. 20.Under which type of activity will you classify ‘commission and royalty received’while preparing cash flow statement? Ans. Understand the cash flow statement for Alphabet Inc. (GOOGL), learn where the money comes from and how the company spends it. Save. For an Insurance Company Search Class Notes. 37.Give one transaction which may result into outflow of cash and one which may result into no flow of cash. (i)Income tax paid during the year Rs 4,500. (Delhi 2012; Modified) (iii)Ignores non-cash transactions. 25.’Payment of dividend’ will come under which type of activity while preparing a cash flow statement? (Foreign 2008) Solved Cbse Class 12 Accountancy Full Project(Comprehensive Project, Ratio Analysis and Cash Flow Statements with Conclusion) 2,031,056 views. A Cash flow statement shows inflow and outflow of cash and cash equivalents from various activities of a company during a specific period. 5.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: Prepare the cash flow statement. (iii) Helpful in formulation of business policies. 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Ans. (Delhi 2009; All India 2009) (Delhi 2011C; Modified) Interest received is never considered as a financing activity. 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. Free PDF Download of CBSE Accountancy Multiple Choice Questions for Class 12 with Answers Chapter 12 Comparative Statements. Ans.Two investing activities that result into inflow of cash are: ‘Deposit of cash into bank’ does not result in cash flow. 65.From the following balance sheet of Vijay Ltd as at 31st March, 2007 and 2008, prepare the cash flow statement (i) Useful in short-term financial planning. 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. 56.From the following information prepare a ‘cash flow statement’ for Ronak Ltd. Balance sheet of Ronak Ltd as at 31st March, 2011 and 2012. Ans. (All India 2011) 5. 31.Declaration of final dividend would result into inflow, outflow or no flow of cash.Give your answer with reason. Ans. (All India 2014 (C), 2009) Accountancy, Business … Limitations of Cash Flow Statement 6.Cash Flow from Operating Activities Operating activities are the principal revenue producing activities of the enterprise and other activities that are not investing or financing activities. 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(Delhi; All India 2009) 15.Under which type of activity will you classify ‘interest paid on long-term borrowings’ while preparing cash flow statement? (Compartment 2014) 16.State with reason whether ‘old furniture written-off’ would result into inflow/outflow or no flow of cash. (vii)Premiums and claims received (viii) Premiums and claims paid (All India 2008) (v)Cash received for interest and dividends (vi) Cash paid for interest Ans. Login. The indirect method for the preparation of the statement of cash flows involves the adjustment of net income with changes in balance sheet accounts to arrive at the amount of cash generated by operating activities. Here is a compilation of top three accounting problems on cash flow statement with its relevant solutions. (viii) Rent received      (ix) Rent paid. Exams are coming! 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