Practice Solved Example - 7 | 4. Cash Flow | ICSE Class 12 Accounts
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Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

What do you add back to the net profit before tax?

💡 Hint: Consider what non-cash expenses are adjusted.

Question 2

Easy

What happens when the amount of debtors increases?

💡 Hint: Think about how sales on credit affect cash flow.

Practice 4 more questions and get performance evaluation

Interactive Quizzes

Engage in quick quizzes to reinforce what you've learned and check your comprehension.

Question 1

What does a cash flow statement NOT include?

  • Cash transactions
  • Accrual transactions
  • Cash equivalents

💡 Hint: Consider the basis on which cash flow is measured.

Question 2

True or False: Depreciation is added back when calculating cash flow from operations.

  • True
  • False

💡 Hint: Think about how non-cash expenses are treated.

Solve and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

A company’s profit before tax is ₹300,000. It has a ₹70,000 depreciation, ₹40,000 increase in debtors, ₹13,000 decrease in creditors, and ₹60,000 tax paid. What is the Net Cash Flow from Operating Activities?

💡 Hint: Apply all adjustments carefully in the calculation.

Question 2

Discuss and illustrate how cash flow from investing activities differs from cash flow from operating activities. Give examples.

💡 Hint: Consider what activities each category covers.

Challenge and get performance evaluation