Cash Flow Statement: Class 12 Accountancy (MP Board) important questions and practice
Cash Flow Statement is chapter 10 of 10 in MP Board Class 12 Accountancy. Below are the topics the paper draws from, the question types that come up again and again, and a free practice test on this chapter alone.
Topics in this chapter
- Meaning, objectives and benefits of a cash flow statement (AS-3)
- Cash and cash equivalents
- Classification: operating, investing and financing activities
- Indirect method: net profit before tax and extraordinary items, adjustments for non-cash and non-operating items
- Working capital changes and treatment of tax, dividend and interest
- Treatment of depreciation, sale of fixed assets and provisions
What examiners usually ask
- Prepare a Cash Flow Statement from the given Balance Sheets and additional information
- Calculate cash flow from operating activities from the given Statement of Profit and Loss and working capital changes
- Classify the following as operating, investing or financing activities: dividend paid, purchase of machinery, interest received by a non-financial company
Exam tip
Start with Net Profit before Tax (add proposed dividend of the previous year and provision for tax made during the year), and remember that interest paid is a financing activity while interest and dividend received are investing activities for a non-financial company.
Cash Flow Statement on other boards and exams
Frequently asked questions
What are the important questions from Cash Flow Statement for MP Board Class 12?
The question types listed above repeat most often in MP Board Class 12 Accountancy papers for this chapter. Practise them with the chapter test and then attempt them inside a full previous-year paper under time.
Is Cash Flow Statement in the MP Board Class 12 Accountancy syllabus?
Yes. Cash Flow Statement is part of the current MP Board Class 12 Accountancy syllabus, as listed on this site from the prescribed textbook.
Can I practise Cash Flow Statement MCQs in Hindi?
Yes. The chapter test and explanations are available in Hindi and English, with an AI doubt solver for any question.