CUET Accountancy - Financial Statements - Cash Flow | Free Questions - Page 5

Q1:

2022: 20 July Shift 1

Financial Statements

>

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.

Find out Net Profit before tax from the above informations :

Rs. 72,000

Rs. 82,000

Rs. 99,000

Rs. 89,000

Correct Answer

Option 2

Correct Answer

Explanation

Q2:

2022: 20 July Shift 1

Financial Statements

>

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.

We add depreciation in order to find out operating profit before working capital changes :

because it is an income

because depreciation is a cash expense

because depreciation being a non-cash expense

because it is given in operating activity proforma

Correct Answer

Option 3

Correct Answer

Explanation

Q3:

2022: 20 July Shift 1

Financial Statements

>

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.

Apast from showing interim dividend in Net Profit before tax, where else it will be shown ?

Operating Activity

Investing Activity

Financing Activity

Cash and Cash Equivalent

Correct Answer

Option 3

Correct Answer

Explanation

Q4:

2022: 16 July Shift 2

Financial Statements

>

Cash Flow

Medium

Identify the items not to be shown under Financing activities while making cash flow:-

A. Payment of dividend and interest

B. Interest paid by financial enterprise

C. Redemption of debentures

D. Proceeds from issue of equity shares

E. Loss due to theft

Choose the correct answer from the options given below:

A and C only

A and D only

B and E only

B and D only

Correct Answer

Option 3

Correct Answer

Explanation

Q5:

2022: 16 July Shift 2

Financial Statements

>

Cash Flow

Hard

Operating profit before working capital charges amounted to Rs.85,000. The following further information is given

	31.3.2020 (Rs.)	31.3.2019 (Rs.)
Cash	36,000	30,000
Trade receivable	18,000	12,000
Provision for tax	9,000	8,000
Trade payables	20,000	16,000
Bank over draft	18,000	-

The Net cash flow from operating activities after tax is.

Rs.74,000

Rs.75,000

Rs.93,000

Rs.79,000

Correct Answer

Option 2

Correct Answer

Explanation

Q6:

2022: 16 July Shift 2

Financial Statements

>

Cash Flow

Easy

Operating Expenses include

A. Rent paid

B. Interest paid on loan

C. Selling and Distribution Expenses

D. Commission Received

E. Salaries Paid

Choose the correct answer from the options given below:

A and C Only

A, B and C only

A, D and E only

A, C and E only

Correct Answer

Option 4

Correct Answer

Explanation

Q7:

2022: 16 July Shift 2

Financial Statements

>

Cash Flow

Medium

Match the following with regard to Cash Flow Statement

List I	List II
A. Operating activity	I. Raising of loan
B. Investing activity	II. Current investment
C. Financing activity	III. Selling of investment
D. Cash and Cash equivalent	IV. Buying of raw material

Choose the correct answer from the options given below:

A-IV, B-III, C-I, D-II

A-III, B-I, C-II, D-IV

A-IV, B-I, C-III, D-II

A-II, B-I, C-IV, D-III

Correct Answer

Option 1

Correct Answer

Explanation

Q8:

2022: 16 July Shift 2

Financial Statements

>

Cash Flow

Easy

Which of the following is an in flow of cash in financing activity?

Issue of Bonus shares

Shares issued for consideration other than cash

Issue of shares to promoters

Issue of shares to public

Correct Answer

Option 4

Correct Answer

Explanation

Q9:

2022: 16 July Shift 2

Financial Statements

>

Cash Flow

Easy

If the net profit earned during the year is Rs.50,000 and amount of Depreciation during the year is Rs.15,000, then the cash flow from operating activities will be equal to Rs. _______.

Rs.65,000

Rs.35,000

Rs.50,000

Rs.15,000

Correct Answer

Option 1

Correct Answer

Explanation

Q10:

2022: 15 July Shift 2

Financial Statements

>

Cash Flow

Easy

Identify the Cash Outflow from Financing Activity

Increase in Share Capital

Proceeds from Long term Borrowings

Dividend Received

Repayment of Bank Overdraft

Correct Answer

Option 4

Correct Answer

Explanation

Q11:

2022: 15 July Shift 2

Financial Statements

>

Cash Flow

Medium

Cash Advance and Loan made to third party (other than made by financial enterprise) is

Outflow from Investing Activities

Outflow from Financing Activities

Inflow from Investing Activities

Inflow from Financing Activities

Correct Answer

Option 1

Correct Answer

Explanation

Q12:

2022: 15 July Shift 2

Financial Statements

>

Cash Flow

Easy

Purchase of goodwill is considered in _______ activity while making Cash Flow Statement.

Operating

Investing

Financing

Operating, Investing and Financing

Correct Answer

Option 2

Correct Answer

Explanation

Q13:

2022: 15 July Shift 2

Financial Statements

>

Cash Flow

Medium

Interest paid on debentures by a manufacturing company would be

Added in Operating activities and subtracted from Financing activities

Added in Investing activities and subtracted from Operating activities

Added in Financing activities and subtracted from Investing activities

Added in Cash and Cash equivalent

Correct Answer

Option 1

Correct Answer

Explanation

Q14:

2022: 15 July Shift 2

Financial Statements

>

Cash Flow

Easy

Match List I with List II

List I	List II
A. Operating Activities	I. Issue of shares
B. Investing Activities	II. Bank Balance
C. Financing Activities	III. Sale and purchase of goods and services
D. Cash and cash equivalent	IV. Buying of fixed assets

Choose the correct answer from the options given below:

A-III, B-IV, C-I, D-II

A-III, B- I, C- II, D-IV

A-IV, B-II, C-III, D-I

A-I, B-III, C-II, D-IV

Correct Answer

Option 1

Correct Answer

Explanation

Q15:

2022: 15 July Shift 2

Financial Statements

>

Cash Flow

Easy

Hero Ltd, started a new venture of making casual shirts. The directors decided to issue 5,000,00 shares of Rs. 10 each at Rs. 12 each. The following assets were purchased by the company

A building of Rs. 10 lakhs

Furniture of Rs. 7 lakhs

Machinery of Rs. 2 lakhs

The company purchased cloth of Rs. 20 lakhs and paid wages Rs. 5,00,000 to the workers. The Directors also decided to buy 10,000 shares of TATA Ltd. of Rs. 10 each and at the end of the year Tata Ltd. Paid Rs. 10,000 as dividend

Dividend received by Hero Ltd. would be _______ activity

Operating

Investing

Financing

Investing and financing

Correct Answer

Option 2

Correct Answer

Explanation

Q16:

2022: 15 July Shift 2

Financial Statements

>

Cash Flow

Medium

Hero Ltd, started a new venture of making casual shirts. The directors decided to issue 5,000,00 shares of Rs. 10 each at Rs. 12 each. The following assets were purchased by the company

A building of Rs. 10 lakhs

Furniture of Rs. 7 lakhs

Machinery of Rs. 2 lakhs

The company purchased cloth of Rs. 20 lakhs and paid wages Rs. 5,00,000 to the workers. The Directors also decided to buy 10,000 shares of TATA Ltd. of Rs. 10 each and at the end of the year Tata Ltd. Paid Rs. 10,000 as dividend

Amount of Security Premium Reserve will be shown in

Operating activity

Investing activity

Financing activity

Cash and Cash equivalent

Correct Answer

Option 3

Correct Answer

Explanation

Q17:

2022: 15 July Shift 2

Financial Statements

>

Cash Flow

Easy

Hero Ltd, started a new venture of making casual shirts. The directors decided to issue 5,000,00 shares of Rs. 10 each at Rs. 12 each. The following assets were purchased by the company

A building of Rs. 10 lakhs

Furniture of Rs. 7 lakhs

Machinery of Rs. 2 lakhs

The company purchased cloth of Rs. 20 lakhs and paid wages Rs. 5,00,000 to the workers. The Directors also decided to buy 10,000 shares of TATA Ltd. of Rs. 10 each and at the end of the year Tata Ltd. Paid Rs. 10,000 as dividend

Dividend paid by TATA Ltd. is which activity for the company?

Operating activity

Investing activity

Financing activity

Operating and financing both

Correct Answer

Option 3

Correct Answer

Explanation

Q18:

2022: 15 July Shift 2

Financial Statements

>

Cash Flow

Hard

Hero Ltd, started a new venture of making casual shirts. The directors decided to issue 5,000,00 shares of Rs. 10 each at Rs. 12 each. The following assets were purchased by the company

A building of Rs. 10 lakhs

Furniture of Rs. 7 lakhs

Machinery of Rs. 2 lakhs

The company purchased cloth of Rs. 20 lakhs and paid wages Rs. 5,00,000 to the workers. The Directors also decided to buy 10,000 shares of TATA Ltd. of Rs. 10 each and at the end of the year Tata Ltd. Paid Rs. 10,000 as dividend

What is the Cash flow from investing activities?

Rs. 19,00,000

Rs. 10,00,00

Rs. 2,00,000

Rs. 50,00,000

Correct Answer

Option 1

Correct Answer

Explanation

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

Q1:

Q2:

Q3:

Q4:

Q5:

Q6:

Q7:

Q8:

Q9:

Q10:

Q11:

Q12:

Q13:

Q14:

Q15:

Q16:

Q17:

Q18:

CUET Accountancy Past Year Questions (Topic-Wise)