NCERT Solutions for Class 12 Accountancy Part 2 Chapter 6 Cash Flow Statement

NCERT Solutions for Class 12 Accountancy Part 2 Chapter 6 Cash Flow Statement: Do you know what the most effective method for achieving high grades in Cash Flow Statement? Students should also get Class 12 Accounts Company Accounts and financial statement analysis Chapter 6 answers to further prepare themselves for  CBSE Class 12 Board Exam. You will know the meaning of cash flow statements along with their objectives and benefits. Additionally, you will also learn about the preparation of cash flow statements and a host of other concepts such as ascertaining the cash flow from operations and investments.

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NCERT Solutions for Class 12 Accountancy Part 2 Chapter 6 Cash Flow Statement

Class 12 Accountancy Part 2 Chapter 6 NCERT Solutions

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Class 12 Accountancy Part 2 Chapter 6 Cash Flow Statement – Overview

A cash flow statement is one of the significant financial statements that tell you how much cash the company is getting, as well as how much it is spending during a year or a specified period. Cash flow statements also give you information about the sources from which the company is receiving the cash, and how it is using that cash.

Goals of Cash Flow Statements

A cash flow statement provides information about the operations, investments, and finances of a business or company and how it intends to use the cash that it receives to achieve its goals. So, the information that you get from these statements can be useful for assessing how much and in what way the company or business generates cash.

Benefits of Cash Flow Statements

As stated earlier, a cash flow statement gives vital information that you can use to assess how the company is doing financially as well as in terms of operations and investments. Likewise, there are various other benefits of cash flow statements, which you can find in the following section.

1. One of the most apparent benefits of cash flow statements is that they track the cash flow of a company or business. Doing so will allow the company to evaluate not only their stance in the markets but also how they are doing as compared to their competitors.
2. Another benefit of cash flow statements is that it lets the company or business to know their ability to generate cash in terms of revenue, while also allowing them to develop business models by comparing the present and future values of their cash flow.
3. Cash flow statements also help balance the cash flowing in and out of the company.
4. Besides this, they help chalk out effective strategies for the business while also reducing operational costs.

So, now that you have learned about cash flow statements, their benefits, and their impact on the operational costs of the business, you can head over to the questions present at the end of the chapter and answer them to know where you stand.

Marks Weightage of Ch 6 of Accounts Class 12 Part 2

Accountancy Part 2 Chapter 6 is part of unit 3 and is worth 20 points.

Concepts covered in NCERT Solutions for Class 12 Accountancy Part 2 Chapter 6

• Nature of the cash flow statement
• Benefits of cash flow statement
• Cash and cash equivalents
• Cash flows
• Preparation of cash flow statement

Highly Important Links For CBSE Class 12 Accountancy

Benefits of NCERT Solutions for Class 12 Accountancy Part 2 Chapter 6

You have hundreds of benefits of learning about cash flow statements with the help of NCERT solutions. In the following section, you will find such advantages and more.

1. They are Easy to Follow

All the chapter-wise solutions by NCERT are easy to understand and Chapter six in part two in Accountancy for CBSE class 12 is no exception. The concepts in this chapter are logical to make it easier for you to go through them.

2. You will Learn Essential Concepts

By going through this chapter by taking the help of NCERT solutions, you will learn those concepts that are essential not only for the exams but also for pursuing higher studies.

3. They are Free to Download

Just as the other NCERT solutions, the ones for the chapter on Cash Flow Statements in Accountancy for CBSE class 12 are also free to download.

4. They are Helpful for the Exams

By studying chapter six in part two in Accountancy for CBSE class 12 by using the solutions, you can come out on top in the board exams. The solutions have questions at the end of the chapter, which you can answer to get enough practice. 

We have covered the detailed guide on CBSE NCERT Solutions for Class 12 Accountancy Part 2 Chapter 6. Feel free to ask any questions in the comment section below.

FAQs on NCERT Solutions for Class 12 Accountancy Part 2 Chapter 6