Cash Flow Statement Important Questions - Class 12 CBSE 2026 | Commerce Exam Guide
Table of Contents
Cash Flow Statement Important Questions – Introduction
Cash Flow Statement is one of the most scoring chapters in CBSE Class 12 Accountancy (Commerce). Every year, 8–12 marks questions are asked directly from this topic, especially practical problems. Students who understand the format and logic can easily score full marks.
This guide covers important cash flow questions, formats, tips, and high-weightage areas for fast revision.
High-Weightage & Easy-to-Score Units (Fast Recap)
| Category | Units |
|---|---|
| High Weightage Unit | Cash Flow Statement (Financial Statements Analysis) |
| Very Easy to Score | Format-based questions, MCQs, Operating Activities |
| Moderate Difficulty | Investing & Financing Activities Numerical Questions |
Cash Flow Statement is considered one of the easiest scoring chapters in Accountancy if practiced properly.
What is Cash Flow Statement?
A Cash Flow Statement shows the inflow and outflow of cash during an accounting period under three activities:
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Operating Activities
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Investing Activities
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Financing Activities
Most Important Cash Flow Statement Questions (CBSE Pattern)
1. Theory-Based Questions
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Define Cash Flow Statement.
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Explain the objectives of Cash Flow Statement.
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Differentiate between Cash Flow Statement and Income Statement.
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What are operating activities? Give examples.
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What are investing activities?
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What are financing activities?
2. Practical / Numerical Questions (Most Important)
| Question Type | Expected in Exam |
|---|---|
| Prepare Cash Flow Statement from Balance Sheets | 5–8 Marks |
| Calculate Cash from Operating Activities | 3–5 Marks |
| Identify Cash/Non-Cash Items | 2–3 Marks |
| Adjustments (Depreciation, Provision, Goodwill) | Very Important |
Format of Cash Flow Statement (Exam Must Learn)
| Particulars | Amount (₹) |
|---|---|
| A. Cash from Operating Activities | xxx |
| B. Cash from Investing Activities | xxx |
| C. Cash from Financing Activities | xxx |
| Net Increase/Decrease in Cash | xxx |
| Opening Cash Balance | xxx |
| Closing Cash Balance | xxx |
Important Adjustments Students Must Remember
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Add: Depreciation, Provision, Goodwill written off
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Subtract: Profit on sale of assets
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Increase in Current Assets → Decrease cash
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Increase in Current Liabilities → Increase cash
One-Day Revision Plan for Cash Flow Statement
| Time | Topic |
|---|---|
| Morning | Operating Activities Problems |
| Afternoon | Investing & Financing Activities |
| Evening | Adjustments and Format Practice |
| Night | MCQs and Theory Questions |
How to Score Full Marks in Cash Flow Statement
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Always write proper headings and format
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Show working notes clearly
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Use neat tables and calculations
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Avoid overwriting and missing steps
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Practice at least 5 numerical questions
Common Mistakes Students Make
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Forgetting adjustment rules
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Mixing operating and investing items
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Wrong sign (+ / –) in working notes
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Not writing opening and closing cash balance
Avoid these mistakes to guarantee marks.
Conclusion
Cash Flow Statement is a must-prepare topic for CBSE Class 12 Commerce students. With clear concepts and regular practice, students can easily score full marks. Focus on format, adjustments, and numerical practice to boost your Accountancy score.
Click here to read about CBSE Class 12 Accountancy Syllabus 2025–26 | Complete Guide for 2026 Boards: https://dekhocampus.com/news/cbse-class-12-accountancy-syllabus-2025-26
FAQs (Frequently Asked Questions)
Cash Flow Statement usually carries 8–12 marks, including long numerical questions and MCQs. It is one of the highest-scoring chapters in Accountancy.
Yes. It is considered one of the easiest scoring chapters because the format is fixed and questions follow a repeated pattern.
Calculating Cash from Operating Activities and preparing the final statement format are the most important and frequently asked topics.
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