Class 12 Cash Flow Statement worksheet

Sample questions

Real questions from this chapter, as the app sets them. Tap Answer to see the answer and working.

Section A · multiple choice

1. 1.

   The cash flow statement is prepared under:

   1. AS 10
   2. AS 26
   3. AS 1
   4. AS 3 (Revised)

   Answer

   (d) AS 3 (Revised)

2. 2.

   For a manufacturing company, “raising a long-term bank loan” is a cash flow from:

   1. operating activity
   2. investing activity
   3. financing activity
   4. not a cash flow (a cash equivalent)

   Answer

   (c) financing activity

3. 3.

   Which of these is NOT a cash equivalent?

   1. a bank deposit maturing within three months
   2. commercial paper maturing within three months
   3. treasury bills maturing within three months
   4. equity shares of another company

   Answer

   (d) equity shares of another company

Section B · short answer

1. 4.

   What is a cash flow statement?

   Answer

   A statement showing the inflows and outflows of cash and cash equivalents of a period, classified into operating, investing and financing activities.

2. 5.

   Explain each term: (a) indirect method (b) cash flow

   Answer

   (a) starting from net profit and adjusting for non-cash items and working capital changes (b) an inflow or outflow of cash and cash equivalents

Section C · long answer

1. 6.

   Explain the benefits of a cash flow statement.

   Answer

   It shows how cash was generated and used, helps judge liquidity and the ability to pay debts and dividends, helps cash planning, and allows comparison between firms.

Fresh sheets for your child

In the app, every Cash Flow Statement sheet is new: the app remembers the questions your child has already had and leaves them out. Print the sheet as a PDF, or use notebook mode and write the answers in a notebook.

Coming soon for Android and iPhone.

More Class 12 Accountancy