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160+ Analysis of Financial Statements Solved MCQs

These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Business Administration (BBA) .

Chapters

Chapter: Fund Flow Statement
151.

The term non-current account refers to…

A. capital
B. liabilities
C. long term liabilities
D. both (a) & (c)
Answer» D. both (a) & (c)
152.

Share premium, share forfeited, profit and loss account, balance of profit are the examples of…

A. current assets
B. permanent liabilities
C. fixed assets
D. current liabilities
Answer» B. permanent liabilities
153.

The funds flow analysis is of primary importance to…

A. personnel management
B. financial management
C. quality control management
D. auditing
Answer» B. financial management
154.

Basically, the funds flow statement is considered a tool for…

A. cost control
B. financial analysis
C. performance analysis
D. none
Answer» B. financial analysis
155.

Who uses the funds flow statement widely?

A. financial institutions
B. financial managers
C. analysts
D. all of the above
Answer» D. all of the above
156.

Basically, the funds flow statement shows the causes for changes of _________ during a period.

A. assets
B. liabilities
C. both
D. none
Answer» C. both
157.

The sources of side of funds flow statement shows the______ sources of funds of a firm.

A. internal
B. external
C. both
D. none
Answer» C. both
158.

Funds flow statement is a substitute for…

A. income statement
B. balance sheet
C. both
D. none
Answer» D. none
159.

Which of following are original statements?

A. funds flow statement
B. financial statement
C. cash flow statement
D. working capital statement
Answer» B. financial statement
160.

Which of the following statement is dynamic in nature?

A. balance sheet
B. funds flow
C. both
D. income statement
Answer» B. funds flow
161.

Funds flow statement is complementary to…

A. balance sheet
B. income statement
C. both
D. none
Answer» C. both
162.

Which of the following is the source of funds?

A. issue of shares
B. raising long term loans
C. sale of fixed assets
D. all of these
Answer» D. all of these
163.

Which of the following is an application of funds?

A. funds lost in operation
B. income from investment
C. funds from operations
D. all of these
Answer» A. funds lost in operation
164.

What is meant by funds from operation?

A. operating profit
B. net profit
C. gross profit
D. all of the above
Answer» A. operating profit
165.

Working capital requirements depends on the credit policy of …

A. the company
B. the suppliers
C. both
D. none
Answer» C. both

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