Practice Summary (9) - Cash Flow - ICSE 12 Accounts
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Practice Questions

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Question 1 Easy

Define a Cash Flow Statement.

💡 Hint: Focus on what it tracks.

Question 2 Easy

What do we mean by liquidity?

💡 Hint: Think about cash availability.

4 more questions available

Interactive Quizzes

Quick quizzes to reinforce your learning

Question 1

What is the purpose of a Cash Flow Statement?

To show profit only
To evaluate cash inflows and outflows
To analyze equity only

💡 Hint: Look for its overall purpose.

Question 2

True or False: The Cash Flow Statement is prepared on the accrual basis.

True
False

💡 Hint: Consider the basis of accounting it follows.

1 more question available

Challenge Problems

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Challenge 1 Hard

Given the following cash transactions, calculate the net cash flow: Net Profit: ₹1,50,000, Depreciation: ₹25,000, Increase in Debtors: ₹15,000, Tax Paid: ₹35,000.

💡 Hint: Remember to adjust net profit.

Challenge 2 Hard

Assess the impact of increasing debt on a company’s financing cash flow. What actions impact cash flows here?

💡 Hint: Think about borrowing vs paying off debts.

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