AfterBoards Logo

CUET Accountancy: Financial StatementsCash Flow. Free, no login required.

Q1:

2022: 23 Aug Shift 2

Cash Flow

Hard

Nitin Ltd. provides you the following information.

Particulars1 April 202131 March 2022
Machinery2,40,0003,50,000
Accumulated Depreciation50,00045,000

During the year, a machine costing Rs. 90,000 with accumulated depreciation of Rs. 31,500 was sold for Rs. 52,000.

Calculate Cash Flow from Investing Activities on the basis of the above information.

Answer options
Option 3
Correct Answer
Explanation for 2022: 23 Aug Shift 2 ACC question 1

Q2:

2022: 23 Aug Shift 2

Cash Flow

Medium

Identify the correct sequence in calculation of Cash Flow from Operating Activities.

(A) Addition and subtraction of Non cash/Non operating items

(B) Payment of income tax

(C) Calculation of operating profit before working capital changes.

(D) Calculation of net profit/loss before tax and extraordinary items

Choose the correct answer from the options given below :

Answer options
Option 1
Correct Answer
Explanation for 2022: 23 Aug Shift 2 ACC question 2

Q3:

2022: 20 Aug Shift 2

Cash Flow

Medium

Which among the following are the non-cash items?

A. Deferred Tax

B. Goodwill write-off

C. Depreciation

D. Increase in Stock

Choose the correct answer from the options given below:

Answer options
Option 4
Correct Answer
Explanation for 2022: 20 Aug Shift 2 ACC question 3

Q4:

2022: 20 Aug Shift 2

Cash Flow

Easy

From the following information of I Ltd., calculate Net Increase / Decrease in cash and cash equivalents during the year 2021-22.

i) Cash flow from Operating Activities: Rs. 2,35,000

ii) Cash used in investing Activities: Rs. 4,35,000

iii) Cash flow from financing activities: Rs. 2,35,000

Answer options
Option 4
Correct Answer
Explanation for 2022: 20 Aug Shift 2 ACC question 4

Q5:

2022: 20 Aug Shift 2

Cash Flow

Easy

Separate disclosure of cash flows from ________ activities is important because they represent the extent to which expenditure have been made for resources intended to generate future income and cash flows:

Answer options
Option 2
Correct Answer
Explanation for 2022: 20 Aug Shift 2 ACC question 5

Q6:

2022: 20 Aug Shift 2

Cash Flow

Medium

Following items are categorised under Operating Activities:

A. Purchase of Goodwill

B. Transfer to General Reserve

C. Issue of fresh shares

D. Gain on sale of machinery

Choose the correct answer from the options given below:

Answer options
Option 1
Correct Answer
Explanation for 2022: 20 Aug Shift 2 ACC question 6

Q7:

2022: 20 Aug Shift 2

Cash Flow

Hard

Read the following information to answer.

On the basis of case study given below, answer the question which follows:

"Mikku on alumni of IIT Delhi, initiated his start-up "Gajanan Ltd.," in the year 2016. His profit in the year 2020-21 after all appropriation was Rs. 6,25,000. This profit was arrived after taking following items into consideration:

| Loss on Sale of fixed Assets | Rs. 5,00,000 | | Goodwill written off | Rs. 3,80,000 | | Transfer to reserve | Rs. 3,55,000 | | Provision for tax | Rs. 2,70,000 | | Interest on Debentures paid | Rs. 1,65,000 |

Other Details are:

| Particulars | 2020 (in Rs.) | 2021 (in Rs.) | | Prepaid Expenses | 25,000 | 10,000 | | Accrued interest | 40,000 | 68,000 | | Trade payables | 7,00,000 | 4,00,000 | | Inventories | 6,50,000 | 5,50,000 |

Net profit before tax will be Rs. ________

Answer options
Option 3
Correct Answer
Explanation for 2022: 20 Aug Shift 2 ACC question 7

Q8:

2022: 20 Aug Shift 2

Cash Flow

Hard

Read the following information to answer.

On the basis of case study given below, answer the question which follows:

"Mikku on alumni of IIT Delhi, initiated his start-up "Gajanan Ltd.," in the year 2016. His profit in the year 2020-21 after all appropriation was Rs. 6,25,000. This profit was arrived after taking following items into consideration:

| Loss on Sale of fixed Assets | Rs. 5,00,000 | | Goodwill written off | Rs. 3,80,000 | | Transfer to reserve | Rs. 3,55,000 | | Provision for tax | Rs. 2,70,000 | | Interest on Debentures paid | Rs. 1,65,000 |

Other Details are:

| Particulars | 2020 (in Rs.) | 2021 (in Rs.) | | Prepaid Expenses | 25,000 | 10,000 | | Accrued interest | 40,000 | 68,000 | | Trade payables | 7,00,000 | 4,00,000 | | Inventories | 6,50,000 | 5,50,000 |

Operating Profit before working capital changes will be Rs. ________

Answer options
Option 1
Correct Answer
Explanation for 2022: 20 Aug Shift 2 ACC question 8

Q9:

2022: 20 Aug Shift 2

Cash Flow

Hard

Read the following information to answer.

On the basis of case study given below, answer the question which follows:

"Mikku on alumni of IIT Delhi, initiated his start-up "Gajanan Ltd.," in the year 2016. His profit in the year 2020-21 after all appropriation was Rs. 6,25,000. This profit was arrived after taking following items into consideration:

| Loss on Sale of fixed Assets | Rs. 5,00,000 | | Goodwill written off | Rs. 3,80,000 | | Transfer to reserve | Rs. 3,55,000 | | Provision for tax | Rs. 2,70,000 | | Interest on Debentures paid | Rs. 1,65,000 |

Other Details are:

| Particulars | 2020 (in Rs.) | 2021 (in Rs.) | | Prepaid Expenses | 25,000 | 10,000 | | Accrued interest | 40,000 | 68,000 | | Trade payables | 7,00,000 | 4,00,000 | | Inventories | 6,50,000 | 5,50,000 |

From among the following, choose the item which would be mentioned in financing activity also:

Answer options
Option 2
Correct Answer
Explanation for 2022: 20 Aug Shift 2 ACC question 9

Q10:

2022: 20 Aug Shift 2

Cash Flow

Hard

Read the following information to answer.

On the basis of case study given below, answer the question which follows:

"Mikku on alumni of IIT Delhi, initiated his start-up "Gajanan Ltd.," in the year 2016. His profit in the year 2020-21 after all appropriation was Rs. 6,25,000. This profit was arrived after taking following items into consideration:

| Loss on Sale of fixed Assets | Rs. 5,00,000 | | Goodwill written off | Rs. 3,80,000 | | Transfer to reserve | Rs. 3,55,000 | | Provision for tax | Rs. 2,70,000 | | Interest on Debentures paid | Rs. 1,65,000 |

Other Details are:

| Particulars | 2020 (in Rs.) | 2021 (in Rs.) | | Prepaid Expenses | 25,000 | 10,000 | | Accrued interest | 40,000 | 68,000 | | Trade payables | 7,00,000 | 4,00,000 | | Inventories | 6,50,000 | 5,50,000 |

Cash from operating activities before tax will be Rs. ________

Answer options
Option 2
Correct Answer
Explanation for 2022: 20 Aug Shift 2 ACC question 10

Q11:

2022: 20 Aug Shift 2

Cash Flow

Hard

Read the following information to answer.

On the basis of case study given below, answer the question which follows:

"Mikku on alumni of IIT Delhi, initiated his start-up "Gajanan Ltd.," in the year 2016. His profit in the year 2020-21 after all appropriation was Rs. 6,25,000. This profit was arrived after taking following items into consideration:

| Loss on Sale of fixed Assets | Rs. 5,00,000 | | Goodwill written off | Rs. 3,80,000 | | Transfer to reserve | Rs. 3,55,000 | | Provision for tax | Rs. 2,70,000 | | Interest on Debentures paid | Rs. 1,65,000 |

Other Details are:

| Particulars | 2020 (in Rs.) | 2021 (in Rs.) | | Prepaid Expenses | 25,000 | 10,000 | | Accrued interest | 40,000 | 68,000 | | Trade payables | 7,00,000 | 4,00,000 | | Inventories | 6,50,000 | 5,50,000 |

Cash flow from Operating Activities will be Rs. ________

Answer options
Option 4
Correct Answer
Explanation for 2022: 20 Aug Shift 2 ACC question 11

Q12:

2022: 8 Aug Shift 2

Cash Flow

Easy

Cash payment to and on behalf of employees is:

Answer options
Option 3
Correct Answer
Explanation for 2022: 8 Aug Shift 2 ACC question 12

Q13:

2022: 8 Aug Shift 2

Cash Flow

Medium

Cash from operations will be if

Total sales Rs. 5,00,000

Credit sales Rs. 2,25,000

Total Purchases Rs. 2,48,000

Credit Purchases Rs. 1,08,000

Cash Operating expenses Rs. 40,000

Answer options
Option 4
Correct Answer
Explanation for 2022: 8 Aug Shift 2 ACC question 13

Q14:

2022: 8 Aug Shift 2

Cash Flow

Easy

Which one of the following activities relate to financing activities?

Answer options
Option 3
Correct Answer
Explanation for 2022: 8 Aug Shift 2 ACC question 14

Q15:

2022: 8 Aug Shift 2

Cash Flow

Medium

Which one of the following is not a 'Cash Outflow'?

Answer options
Option 3
Correct Answer
Explanation for 2022: 8 Aug Shift 2 ACC question 15

Q16:

2022: 8 Aug Shift 2

Cash Flow

Hard

Which items are not added to the net profit for calculating cash from operating activities?

(I) Interest and dividend received

(II) Transfer to reserves

(III) Discount on issue of shares

(IV) Loss on sale of fixed assets

Answer options
Option 1
Correct Answer
Explanation for 2022: 8 Aug Shift 2 ACC question 16

Q17:

2022: 8 Aug Shift 2

Cash Flow

Easy

If a machinery is purchased, how will it be treated while preparing the cash flow statement as per AS-3 (Revised)?

Answer options
Option 2
Correct Answer
Explanation for 2022: 8 Aug Shift 2 ACC question 17

Q19:

2022: 8 Aug Shift 2

Cash Flow

Easy

According to AS-3, cash proceeds from issue of share is:

Answer options
Option 2
Correct Answer
Explanation for 2022: 8 Aug Shift 2 ACC question 19

Q20:

2022: 8 Aug Shift 2

Cash Flow

Easy

If the net operating profit of the business is Rs. 90,000 and the debtors have decreased during the year by Rs. 40,000. Cash from operations is:

Answer options
Option 3
Correct Answer
Explanation for 2022: 8 Aug Shift 2 ACC question 20

Q21:

2022: 8 Aug Shift 2

Cash Flow

Medium

Which one of the following statement is false?

Answer options
Option 2
Correct Answer
Explanation for 2022: 8 Aug Shift 2 ACC question 21

Q22:

2022: 8 Aug Shift 2

Cash Flow

Medium

How sale of equipment Rs. 90,000 (Book value Rs. 1,00,000) should be shown in the cash flow statement?

Answer options
Option 3
Correct Answer
Explanation for 2022: 8 Aug Shift 2 ACC question 22

Q23:

2022: 20 July Shift 1

Cash Flow

Medium

Identify the items NOT be shown under Investing Activities while making Cah Flow statement.

(a) Proposed Dividend

(b) Purchase of non-current Investments

(c) Interest paid on long term borrowings

(d) Sale of machinery

(e) Marketable securities

Choose the most appropriate answer from the options given below :

Answer options
Option 2
Correct Answer
Explanation for 2022: 20 July Shift 1 ACC question 23

Q24:

2022: 20 July Shift 1

Cash Flow

Medium

On 1st April 2020, the balance of furniture of ABC Ltd. was Rs. 20,000. During the year furniture costing Rs. 4,000 was sold at a gain of Rs. 3,000. Depreciation was charged on it Rs. 5,000. The balance of furniture on 31.3.21 was Rs. 28,000. The amount of furniture purchased was :

Answer options
Option 2
Correct Answer
Explanation for 2022: 20 July Shift 1 ACC question 24

Q25:

2022: 20 July Shift 1

Cash Flow

Easy

X Ltd. sold machinery having a book value of Rs. 25,000 (on which accumulated depreciation of Rs. 5,000 had been charged) at a profit of Rs. 3,000. The cash flow from investing activities will be :

Answer options
Option 4
Correct Answer
Explanation for 2022: 20 July Shift 1 ACC question 25

Q26:

2022: 20 July Shift 1

Cash Flow

Medium

Arrange the following items to be in order while making Cash Flow Statement as per AS.3

(a) Income Tax paid

(b) Purchase of Furniture

(c) Good will written off

(d) Debentures issued

(e) Shares purchased

Choose the correct answer from the options given below :

Answer options
Option 1
Correct Answer
Explanation for 2022: 20 July Shift 1 ACC question 26

Q27:

2022: 20 July Shift 1

Cash Flow

Hard

Calculate the amount of cash generated from operations from the following information :

Particulars(Rs.)
Profit before change in working capital2,00,000
Depreciation on plant and Machinery20,000
Gain on sale of Building10,000
Increase in trade Paybles4,500
Increase in trade Receivables3,500
Interest paid2,225
Decrease in Inventories3,750
Redemption of 10% Debentures80,000
Answer options
Option 3
Correct Answer
Explanation for 2022: 20 July Shift 1 ACC question 27

Q28:

2022: 20 July Shift 1

Cash Flow

Medium

Arrange the following into correct sequence while computing cash flow from operating activies.

(a) Compute Net Profit before tax after making necessary adjustments.

(b) Compute operating profit before working capital changes by making adjustment for non-cash and non-operating activities.

(c) Calculate the difference between opening and closing balance in statment of profit and loss.

(d) Compute operating profit by making adjustment for working capital changes.

(e) Calculate cash generated/cash used from operating activities by deducting tax paid from operating profit.

Choose the correct answer from the options given below :

Answer options
Option 4
Correct Answer
Explanation for 2022: 20 July Shift 1 ACC question 28

Q29:

2022: 20 July Shift 1

Cash Flow

Easy

Rathi Udyog, made a profit of 72,000 after changing depreciation of Rs. 17,000 on fixed assets and paid Rs. 10,000 as interim dividend. The goodwill amortized was Rs. 12,000 and profit (Gain) on sale of furniture was Rs. 2,500.

The other informations were :

Trade Payable showed an increase of Rs. 7,000.

Outstanding expenses showed a decrease of Rs. 5,000.

Accrued Income showed an increase of Rs. 8,000.

Trade payable showed a decrease of Rs. 10,000.

Inventories showed a decrease of Rs. 3,000.

On the basis of above infromation answer the following questions.

If from the above informations, cash flow from operating activity is ascertained, then it is ascertained according to Accounting standard :

Answer options
Option 4
Correct Answer
Explanation for 2022: 20 July Shift 1 ACC question 29

Q30:

2022: 20 July Shift 1

Cash Flow

Medium

Rathi Udyog, made a profit of 72,000 after changing depreciation of Rs. 17,000 on fixed assets and paid Rs. 10,000 as interim dividend. The goodwill amortized was Rs. 12,000 and profit (Gain) on sale of furniture was Rs. 2,500.

The other informations were :

Trade Payable showed an increase of Rs. 7,000.

Outstanding expenses showed a decrease of Rs. 5,000.

Accrued Income showed an increase of Rs. 8,000.

Trade payable showed a decrease of Rs. 10,000.

Inventories showed a decrease of Rs. 3,000.

On the basis of above infromation answer the following questions.

In the above case study if amount of Goodwill is increasing in current year, then if will be classified in :

Answer options
Option 2
Correct Answer
Explanation for 2022: 20 July Shift 1 ACC question 30

CUET Accountancy Past Year Questions (Topic-Wise)