Cash Flow Statement
CBSE · Class 12 · Accountancy
Summary of Cash Flow Statement for CBSE Class 12 Accountancy. Key concepts, important points, and chapter overview.
Overview
The Cash Flow Statement is the third important financial statement that shows the inflows and outflows of cash and cash equivalents of an enterprise during a specific period. While the Balance Sheet shows financial position on a particular date and the Income Statement shows operational results over
Key Concepts
Cash includes cash in hand
Cash includes cash in hand and demand deposits with banks. Cash equivalents are short-term, highly liquid investments that can be readily converted to
These are the principal revenue
These are the principal revenue-generating activities of an enterprise that are not investing or financing activities. Examples include cash receipts
Activities involving acquisition and disposal
Activities involving acquisition and disposal of long-term assets and investments not included in cash equivalents. Examples include purchase/sale of
Activities that result in changes
Activities that result in changes in the size and composition of owners' capital and borrowings. Examples include issuing shares, raising loans, repay
Method of calculating operating cash flows
Method of calculating operating cash flows by starting with net profit before tax and extraordinary items, then adjusting for non-cash items, non-oper
Learning Objectives
- Understand the purpose and importance of Cash Flow Statement
- Learn to distinguish between operating, investing, and financing activities
- Master the preparation of Cash Flow Statement using the indirect method
- Understand the legal requirements under Companies Act 2013 and AS-3
- Analyze cash flows to assess enterprise liquidity and solvency
Get detailed chapter summary for Cash Flow Statement
Super Tutor gives you interactive content for every chapter of CBSE Class 12 Accountancy — summaries, quizzes, flashcards, and more.
Try Super Tutor — It's FreeFrequently Asked Questions
What are the important topics in Cash Flow Statement for CBSE Class 12 Accountancy?
Cash Flow Statement covers several key topics that are frequently asked in CBSE Class 12 board exams. Focus on the core concepts listed on this page and practise related questions to build confidence.
How to score full marks in Cash Flow Statement — CBSE Class 12 Accountancy?
Start by understanding all key concepts. Practise previous year questions from this chapter. Revise formulas and definitions regularly. Use flashcards for quick revision before the exam.
Sources & Official References
- NCERT Official — ncert.nic.in
- CBSE Academic — cbseacademic.nic.in
- CBSE Official — cbse.gov.in
- National Education Policy 2020 — education.gov.in
Content is aligned to the official syllabus. Refer to the board website for the latest curriculum.
More Resources for Cash Flow Statement
Important Questions
Practice with board exam-style questions
Syllabus
What topics to cover
Revision Notes
Key points for last-minute revision
Study Plan
Step-by-step plan to ace this chapter
Flashcards
Quick-fire cards for active recall
Formula Sheet
All formulas in one place
Practice Quiz
Test yourself with a quick quiz
Concept Maps
See how topics connect visually