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While computing… (Class 12 Accountancy SQP 2024-25, Q29a)

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AccountancyCBSE Class 12 · Sample paper, session 2024-25 · 1 mark · MCQ

CBSE Class 12 Accountancy sample paper 2024-25: question 29(a)

From the official CBSE sample question paper for 2024-25, section B-I, question 29(a), for 1 mark. Try it first; the hints and our step-by-step solution are below.

Q29(a) · 1 mark · MCQCash Flow Statement

While computing cash from operating activities, which of the following item(s) will be added to the net profit?
(i) Decrease in value of inventory
(ii) Increase in share capital
(iii) Increase in the value of trade receivables
(iv) Increase in the amount of outstanding expenses

  1. (A)Only (i)
  2. (B)Only (i) and (ii)
  3. (C)Only (i) and (iii)
  4. (D)Only (i) and (iv)

Source: official sample paper from cbseacademic.nic.in (PDF). See it in the full Sample paper 2024-25.

Hints

Open one hint at a time and try again before the next.

Hint 1

Which working capital changes release cash?

Hint 2

Is share capital an operating item?

Step-by-step solution

Each step shows the marks it earns, as an examiner would award them. Checked by an independent re-solve from the question paper.

  1. A decrease in inventory and an increase in outstanding expenses both release cash, so they are added.

  2. An increase in share capital is a financing item, and an increase in receivables is deducted. Option (D).

    1 mark

Answer: (D) Only (i) and (iv)

Where the marks are

  • Decrease in current assets and increase in current liabilities are added (1 mark)

Revise the chapter

Practise this chapterBoard-style questions from Cash Flow Statement, one at a time, marked against the answer key and marking points.Back to the full paperSample paper 2024-25: every question, by section.

The question is transcribed from the official paper; figures are described in words. The solution, hints and chapter tag are ours. Spotted an error? Write tosupport@questionbuddy.in.