NCERT Solutions for Class 12 Accountancy Part II Chapter 6 Cash Flow Statement
Q. If the net profits earned during the year is ₹50,000 and the amount of debtors in the beginning and the end of the year is ₹10,000 and ₹20,000 respectively, then the cash from operating activities will be equal to__________(₹40,000/₹60,000).
Q. If the net profits made during the year are ₹50,000 and the bills receivables have decreased by ₹10,000 during the year then the cash flow from operating activities will be equal to __________(₹40,000/₹60,000)
Q. An increase in accrued income during the particular year is__________the net profit. (added to/deducted from)
Ans. deducted from
Q. For calculating cash flow from operating activities, provision for doubtful debts is__________the profit made during the year (added to/deducted from)
Ans. added to
Q. Goodwill amortised is_________the profit made during the year for calculating the cash flow from operating activities. (added to/deducted from).
Ans. added to
Q. How the various activities are classified (as per AS-3 revised) while preparing Cash Flow Statement.
Ans. As per Accounting Standard-3 various activities of Cash Flow Statement are classified into three categories as follows:
Q. State the uses of Cash Flow Statement.
Ans. The various uses of Cash Flow Statement are as follows:
Q. What are the objectives of preparing Cash Flow Statement?
Ans. The various objectives of preparing Cash Flow Statement are as follows:
Q. Now that you know the meaning of operating activities, state clearly what would constitute the operating activities for the following types of enterprises:
Ans. Operating Activities : As we know that these are the principal revenue producing activities of the enterprise and other activities. Operating activities generally reflect cash generated and/or paid as a result of the firm’s core business functions. Hence, the following will be the operating activities in the above mentioned enterprises respectively.