Cheat sheet · Class 12 · CBSE · Commerce Accountancy
Cash Flow Statement cheat sheet
The whole chapter on one page: key formulas, facts and the points to remember, for quick revision before a test.
CBSE Class 12 · Accountancy
Cheat sheet
Chapter 10Cash Flow Statement
Operating + Investing + Financing = net change in cash (AS 3).
1. Classification
| Activity | Examples |
|---|---|
| Operating | cash from customers, paid to suppliers/employees, income tax |
| Investing | buying/selling fixed assets and investments; interest & dividend received (non-financial firms) |
| Financing | issue/redemption of shares & debentures, loans, interest & dividend paid |
2. Indirect Method (Operating)
- Start with net profit before tax.
- Add non-cash/non-operating items (depreciation, loss on sale, interest paid).
- Deduct non-operating income (profit on sale, interest received).
- Adjust working capital changes.
- Deduct tax paid.
3. Working Capital Changes
| Change | Effect |
|---|---|
| Current asset ↑ | subtract |
| Current asset ↓ | add |
| Current liability ↑ | add |
| Current liability ↓ | subtract |
4. Key Points
- Cash equivalents: maturity ≤ 3 months.
- Bonus shares: no cash flow.
- Asset bought for shares: non-cash.
- Financial firms classify interest as operating.
Remember: 3 activities | indirect method | working-capital rules
Cash Flow Statement: questions and notes
More Class 12 · CBSE · Commerce Accountancy cheat sheets
- Accounting for Partnership Firms – Fundamentals
- Reconstitution of a Partnership Firm – Admission of a Partner
- Reconstitution of a Partnership Firm – Retirement/Death of a Partner
- Dissolution of Partnership Firm
- Accounting for Share Capital
- Issue and Redemption of Debentures
- Financial Statements of a Company
- Analysis of Financial Statements
- Accounting Ratios
- Cash Flow Statement
Practise Cash Flow Statement
Sign up free to practise the full chapter. Questions you get wrong come back until you've mastered them.
Start practising freeFree to start · No credit card needed