Important MCQs for Class 12 Accountancy Chapter 10 (With PDF)
MCQs for Accountancy Class 12 Chapter 10 cover the topic of Cash Flow Statement. This chapter is essential for CBSE board exams, entrance exams, and overall financial understanding. Practicing these MCQs improves your speed, accuracy, and understanding of how businesses analyze cash movements. The section is important for students planning careers in commerce and finance.
| Type of Activity | Examples | Role in Cash Flow Statement |
|---|---|---|
| Operating Activities | Cash from sales, payment to suppliers, wages, tax | Main business activities, assesses core operations |
| Investing Activities | Purchase/Sale of assets, investments | Shows long-term investment cash flows |
| Financing Activities | Issue/Repayment of shares, debentures, loans, dividend payment | Tracks changes in company capital and borrowings |
MCQs for Accountancy Class 12 Chapter 10: Cash Flow Statement
MCQs for Accountancy Class 12 Chapter 10 help you revise core concepts for upcoming board and entrance exams. These questions test definitions, calculations, and logical application of Cash Flow Statement concepts. Practicing with MCQs ensures you understand every aspect of the chapter and can quickly solve similar questions in the exam.
- Which of the following is not considered as cash equivalent?
a) Inventory
b) Commercial Paper
c) Treasury Bills
d) Bank Overdraft
Answer: a) Inventory - Dividend received is shown under which activity in the Cash Flow Statement?
a) Operating
b) Financing
c) Investing
d) None of these
Answer: c) Investing - Cash flow from financing activities includes:
a) Sale of machinery
b) Issue of shares
c) Interest received
d) Commission income
Answer: b) Issue of shares - Which accounting standard relates to Cash Flow Statement as per CBSE Class 12?
a) AS-3
b) AS-6
c) AS-10
d) AS-13
Answer: a) AS-3 - Increase in current assets results in:
a) Increase in cash flow from operations
b) Decrease in cash flow from operations
c) No impact
d) Depends on the type of asset
Answer: b) Decrease in cash flow from operations
Important Formulas for Cash Flow Statements
| Formula | Usage |
|---|---|
| Current Ratio = Current Assets / Current Liabilities | Liquidity analysis |
| Cash Flow from Operating Activities = Net Profit + Non-cash Expenses + Changes in Working Capital | Main business cash flows |
| Cash Flow from Investing Activities = Cash from Sale of Assets – Cash used for Asset Purchase | Investment section |
| Cash Flow from Financing Activities = Cash from Issue of Shares/Debentures – Repayment | Capital/funding activities |
| Quick Ratio = (Current Assets - Inventory) / Current Liabilities | Immediate liquidity position |
Application of Cash Flow Statement in Exams and Business
The Cash Flow Statement is a scoring topic in CBSE exams and often features in competitive tests like CUET and CA Foundation. It helps students distinguish between operating, investing, and financing activities. In real life, businesses use cash flow analysis to assess liquidity and plan investments or expenses. At Vedantu, we break these concepts into simple, student-friendly explanations.
Tips for Solving Cash Flow Statement MCQs
- Read every option carefully; some may look similar but are conceptually different.
- Remember classification: not all cash inflows/outflows go in the same activity section.
- Revise key accounting ratios and Cash Flow Statement formats.
- Practice with time limits to improve speed for board exams.
- Review answer explanations, not just the final answer.
Related Resources for Accountancy Class 12 Chapter 10
- Accounting Ratios – Important for understanding ratio-based MCQs.
- Cash Flow Statement Format – Detailed formats with solved examples.
- Profitability Ratios – Deep-dive on ratios tested in both MCQs and statements.
- Comparative Statements – Useful for analyzing trends in MCQ problems.
- DK Goel Solutions Class 12 Accountancy – Chapter-wise MCQ practice and theory solutions.
- Financial Statements of a Company – Foundation for understanding flows and ratios.
MCQ Practice and Revision Tools
Download the free PDF of MCQs for Accountancy Class 12 Chapter 10 for offline practice. Take quick online quizzes on Vedantu to check your understanding. Combining both online and offline practice ensures better retention and exam confidence.
Common Student Issues in Cash Flow Statement MCQs
- Confusing operating and investing cash flows: Always review the classification as per AS-3.
- Missed adjustment for non-cash expenses: Remember to add depreciation back to net profits.
- Mistaking cash equivalents: Items like inventory are not included; check definitions.
- Ignoring changes in working capital: Practice identifying increases and decreases in assets/liabilities.
Summary
MCQs for Accountancy Class 12 Chapter 10 (Cash Flow Statement) help master exam-oriented concepts quickly. Through formula tables, solved MCQs, and expert tips, you can confidently approach board or entrance exams. Related resources, PDF downloads, and online practice on Vedantu make learning organized, efficient, and exam-ready.
FAQs on Accountancy Class 12 Chapter 10 MCQs with Answers
1. What are important MCQs from Accountancy chapter 10?
Chapter 10 of Class 12 Accountancy, focusing on either Accounting Ratios or the Cash Flow Statement (depending on the CBSE syllabus), is crucial for board exams. Important MCQs test your understanding of key ratios like liquidity ratios (Current Ratio, Quick Ratio), solvency ratios (Debt-Equity Ratio), and profitability ratios (Gross Profit Ratio, Net Profit Ratio). For the Cash Flow Statement, expect questions on its preparation, analysis, and interpretation of various sections like operating, investing, and financing activities. Practice diverse question types, including those applying ratios to scenarios.
2. How to download Accountancy Class 12 MCQs?
Many websites offer downloadable Accountancy Class 12 MCQs in PDF format. Look for reputable educational platforms offering chapter-wise MCQs, specifically for Chapter 10. Ensure the MCQs align with the latest CBSE syllabus. Check for features like detailed answers and explanations to enhance your learning. Look for options with mock tests and online quizzes for effective practice.
3. What is the best way to solve MCQs for CBSE Accountancy?
Effective CBSE Accountancy MCQ preparation involves understanding concepts, not just memorising formulas. Start with thorough revision of Chapter 10's key topics (Accounting Ratios or Cash Flow Statement). Practice diverse question types: factual recall, conceptual understanding, and application-based. Time yourself during practice to build speed and accuracy. Analyse your mistakes, understanding the reasoning behind correct answers. Regularly review formulas and definitions.
4. Which chapter is MCQ based in Accountancy Class 12 CBSE?
In CBSE Class 12 Accountancy, many chapters include MCQs in the board exam. Chapter 10, covering either Accounting Ratios or Cash Flow Statement, is a frequent source of MCQs. However, be prepared for MCQs across various chapters testing your overall understanding of accountancy principles. Practice across all chapters to ensure comprehensive preparation.
5. Are PDF downloads available for MCQ questions?
Yes, many educational websites provide PDF downloads for Accountancy Class 12 MCQs, including those focused on Chapter 10 (Accounting Ratios/Cash Flow Statement). Search for reputable sources offering chapter-wise practice material. Look for PDFs that include answers and detailed explanations, allowing for self-assessment and learning from mistakes. Ensure alignment with the current CBSE syllabus before downloading.
6. What topics are covered in Chapter 10 MCQs – Accounting Ratios or Cash Flow Statement?
Chapter 10 MCQs in Class 12 Accountancy may focus on either Accounting Ratios or the Cash Flow Statement, depending on the specific CBSE syllabus. Check your syllabus to confirm the chapter's content. If it's Accounting Ratios, expect questions on various types of ratios (liquidity, solvency, profitability). If it's the Cash Flow Statement, focus on its preparation and interpretation. Ensure your preparation covers both possibilities.
7. How are these MCQs helpful for CBSE Board exam preparation?
MCQs are a valuable tool for CBSE Board exam preparation in Accountancy. They help you quickly assess your understanding of Chapter 10 (Accounting Ratios/Cash Flow Statement) and identify areas needing more attention. Regular practice improves your time management skills and exam technique, crucial for success in objective-type questions. Detailed answers improve your conceptual clarity and problem-solving abilities.
8. Are detailed solutions provided, or only answers?
Reputable sources offering Accountancy MCQs usually provide detailed solutions, not just answers. These solutions explain the reasoning behind the correct answers and highlight common mistakes. This approach is crucial for learning from errors and strengthening your understanding of Accounting Ratios or Cash Flow Statement concepts. Look for resources that emphasize explanations over mere answers.
9. Can I access Chapter 10 MCQs as a mobile-friendly PDF?
Many websites offer mobile-friendly PDF downloads of Chapter 10 Accountancy MCQs. Look for sites specifically mentioning this feature. Ensure the PDF is well-formatted and easy to navigate on smaller screens. Mobile-friendly PDFs are ideal for quick revision on-the-go or offline practice. Check the file size to ensure easy download and access on your device.
10. What is the CBSE marking scheme for MCQs in Accountancy Class 12 Board exams?
The CBSE marking scheme for MCQs in Class 12 Accountancy typically awards one mark for each correct answer, with no negative marking for incorrect answers. However, always refer to the official CBSE marking scheme released before the exam for the most accurate information. Knowing the marking scheme helps in effective time management during the exam.
