Cash Flow Statement
Madhya Pradesh Board · Class 12 · Accountancy
Most important questions from Cash Flow Statement for Madhya Pradesh Board Class 12 Accountancy board exam 2026. MCQs, short answer, and long answer questions with marks.
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Which activities are classified in a Cash Flow Statement according to AS-3?
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Operating Activities, Investing Activities, Financing Activities
AS-3 classifies cash flows into three categories: Operating Activities (main business activities), Investing Activities (acquisition/disposal of long-term assets), and Financing Activities (changes in capital and borrowings).
Which of the following are examples of Operating Activities?
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Cash receipts from sale of goods, Cash payments to suppliers, Payment of salaries to employees
Operating activities include cash flows from main business activities like sales, purchases, and employee payments. Purchase of machinery is investing activity, and issue of shares is financing activity.
Which of the following are examples of Financing Activities?
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Issue of debentures, Repayment of bank loan, Dividend paid
Financing activities involve changes in capital and borrowings. Issue of debentures, loan repayment, and dividend payment are financing activities. Purchase of inventory is operating activity, and sale of machinery is investing activity.
The Cash Flow Statement is prepared according to which Accounting Standard?
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AS-3
Cash Flow Statement is prepared according to Accounting Standard-3 (AS-3) which provides guidelines for the preparation and presentation of cash flow statements.
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