Case/Source-Based MCQs of Cash Flow Statement Accountancy with Answers
Case/Source-Based MCQs of Cash Flow Statement Accountancy with Answers
Tata Motors Ltd. is the pioneers and leading manufacturer of cars. Having an impressive past of 50 years in the industry, it is keen to perform and assures a promising future. It has strong hold not only in domestic market but also in international market. During the previous year, there were many times when they faced inadequacy in cash. As a result, finance manager has been relieved from service and a new appointment has been made. The new finance manager has asked the assistant finance manager to compute some of the items of Cash Flow Statement for the year. So that he would be able to do planning for the cash management.
Following is the Balance Sheet of the company as at 31st March, 2025:
| Particulars | 31st March, 2025 (₹) | 31st March, 2024 (₹) |
| I. EQUITY AND LIABILITIES | ||
| 1. Shareholders’ Funds (a) Share Capital (b) Reserves and Surplus | 10,00,000 8,00,000 | 8,00,000 5,00,000 |
| 2. Current Liabilities (a) Trade Payables (b) Short-term Provisions | 50,000 1,50,000 | 60,000 1,40,000 |
| Total | 20,00,000 | 15,00,000 |
| II. ASSETS | ||
| 1. Non-Current Assets (a) Property, Plant and Equipment and Intangible Assets: (i) Property, Plant and Equipment (ii) Intangible Assets (Goodwill) (b) 10% Non-Current Investments | 6,00,000 4,00,000 5,00,000 | 4,00,000 5,00,000 2,00,000 |
| 2. Current Assets (a) Inventories (b) Trade Receivables (c) Cash and Cash Equivalents | 3,00,000 1,50,000 50,000 | 2,00,000 1,80,000 20,000 |
| Total | 20,00,000 | 15,00,000 |
Notes to Accounts
| Particulars | 31st March, 2025 (₹) | 31st March, 2024 (₹) |
| 1. Reserves and Surplus General Reserve Securities Premium Surplus, i.e., Balance in Statement of Profit & Loss | 3,00,000 3,50,000 1,50,000 | 2,00,000 2,50,000 50,000 |
| 8,00,000 | 5,00,000 | |
| 2. Short-term Provisions Provision for Tax | 1,50,000 | 1,40,000 |
| 3. Property, Plant and Equipment Plant and Machinery (Cost) Less: Accumulated Depreciation | 7,50,000 1,50,000 | 5,00,000 1,00,000 |
| 6,00,000 | 4,00,000 |
Additional Information: Tax paid during the year was ₹ 1,00,000.
Based on the above information, answer the following questions of the Finance Manager:
A. Provision for Tax made during the year is
(a) ₹ 1,40,000
(b) ₹ 1,00,000
(c) ₹ 1,50,000
(d) ₹ 1,10,000
Ans:- (d)
B. Net Profit Before Tax is
(a) ₹ 3,40,000
(b) ₹ 3,00,000
(c) ₹ 3,10,000
(d) ₹ 3,60,000
Ans:- (c)
C. Operating Profit before Working Capital Changes is
(a) ₹ 4,30,000
(b) ₹ 4,40,000
(c) ₹ 4,70,000
(d) ₹ 4,90,000
Ans:- (b)
D. Net Effect of Changes in Working Capital is
(a) ₹ 70,000
(b) ₹ 80,000
(c) ₹ (80,000)
(d) ₹ (70,000)
Ans:- (c)
E. Cash Flow from Operating Activities is
(a) ₹ 2,50,000
(b) ₹ 2,90,000
(c) ₹ 3,10,000
(d) ₹ 2,60,000
Ans:- (c)
F. Cash Flow from (or Used in) Investing Activities is
(a) Outflow of ₹ 5,30,000
(b) Inflow of ₹ 20,000
(c) Outflow of ₹ 2,80,000
(d) Inflow of ₹ 3,20,000
Ans:- (a)
G. Cash Flow from (or Used in) Financing Activities is
(a) Inflow of ₹ 2,00,000
(b) Inflow of ₹ 1,00,000
(c) Inflow of ₹ 3,00,000
(d) Inflow of ₹ 3,20,000
Ans:- (c)
