McqMate
| 101. |
Any gain on sale of non-current asset should be ----- from the net profit for determining funds from operation |
| A. | Deducted |
| B. | Added |
| C. | Increased |
| D. | None of these |
| Answer» A. Deducted | |
| 102. |
Asset sold on credit is---- of funds |
| A. | Application |
| B. | Uses |
| C. | Source |
| D. | Decrease |
| Answer» C. Source | |
| 103. |
Furniture sold for cash -----funds flow |
| A. | Increases |
| B. | Decreases |
| C. | Deducted |
| D. | None of these |
| Answer» A. Increases | |
| 104. |
Goodwill is a ---------------------transaction |
| A. | Current |
| B. | Noncurrent |
| C. | Fixed |
| D. | None of these |
| Answer» B. Noncurrent | |
| 105. |
When one account is current and another a non-current It results in-------------------- |
| A. | Flow of fund |
| B. | Increase of fund |
| C. | Decrease of fund |
| D. | None of these |
| Answer» A. Flow of fund | |
| 106. |
To arrive at funds from operation ,non-cash expenses must be added to---------- |
| A. | Net profit |
| B. | Gross profit |
| C. | Operating profit |
| D. | None of these |
| Answer» A. Net profit | |
| 107. |
Fund flow statement is accompanied by a schedule of----------------------------- |
| A. | Changes in working capital |
| B. | Flow of funds |
| C. | Increase in fund |
| D. | Decrease in fund |
| Answer» A. Changes in working capital | |
| 108. |
Goods purchased on credit-----------inflow of funds |
| A. | Does not result |
| B. | Does result |
| C. | Change |
| D. | None of these |
| Answer» A. Does not result | |
| 109. |
----------account is prepared to know funds from operation |
| A. | Profit & Loss appropriation account |
| B. | Profit and loss account |
| C. | Trading account |
| D. | Profit & Loss adjustment account |
| Answer» D. Profit & Loss adjustment account | |
| 110. |
Increases in current liabilities --------------working capital |
| A. | Increase |
| B. | Decreases |
| C. | Added |
| D. | None of these |
| Answer» B. Decreases | |
| 111. |
Increase in current assets-------------working capital |
| A. | Increases |
| B. | Decreases |
| C. | Deducts |
| D. | Reduces |
| Answer» A. Increases | |
| 112. |
Decrease in current liabilities --------------------working capital |
| A. | Increases |
| B. | Decrease |
| C. | Deducts |
| D. | Reduces |
| Answer» A. Increases | |
| 113. |
Net increase in working capital results in----------------of funds |
| A. | sources |
| B. | inflow |
| C. | no change |
| D. | application |
| Answer» D. application | |
| 114. |
Net decrease in working capital results in --------------------of funds |
| A. | Source |
| B. | Application |
| C. | No change |
| D. | None of these |
| Answer» B. Application | |
| 115. |
-------------------means transfer of economic value of firm from one asset or equity to another. |
| A. | Flow of funds |
| B. | Uses of fund |
| C. | Inflow of funds |
| D. | Application of funds |
| Answer» A. Flow of funds | |
| 116. |
Funds from operations are --------------of funds |
| A. | Application |
| B. | Uses |
| C. | Sources |
| D. | No change |
| Answer» C. Sources | |
| 117. |
In the fund flow statement, depreciation is---------------- |
| A. | Deducted from net profit |
| B. | Added to net profit |
| C. | Sources of working capital |
| D. | Ignored |
| Answer» B. Added to net profit | |
| 118. |
Which of the following is non-current asset |
| A. | Goodwill |
| B. | Debtors |
| C. | Stock |
| D. | Prepaid rent |
| Answer» A. Goodwill | |
| 119. |
Which of the following will affect the flow of fund |
| A. | a transaction affecting current and non-current accounts |
| B. | a transaction affecting both non-current accounts |
| C. | a transaction affecting both current accounts |
| D. | both a) and b) |
| Answer» A. a transaction affecting current and non-current accounts | |
| 120. |
Which of the following is an application of fund |
| A. | Sale of plant |
| B. | Issue of shares |
| C. | Purchase of funds |
| D. | Payment of creditors |
| Answer» C. Purchase of funds | |
| 121. |
Current assets are Rs.6,00,000 current liabilities are Rs.3,00,000 the debtors realized Rs.40,000, the impact on net working capital would be------------------------- |
| A. | No change in working capital |
| B. | Decrease of working capital by Rs.80,000 |
| C. | Increase of working capital by Rs.40,000 |
| D. | None of these |
| Answer» A. No change in working capital | |
| 122. |
Gross profit are Rs.50,000 and expenses not result in the application of funds are Rs.10000 funds from operation will be |
| A. | Rs.60000 |
| B. | Rs.50000 |
| C. | Rs. 40000 |
| D. | Rs. 30000 |
| Answer» A. Rs.60000 | |
| 123. |
Which of the following is a non-current liability |
| A. | Mortgage loan |
| B. | Bank balance |
| C. | Outstanding salary |
| D. | None of these |
| Answer» A. Mortgage loan | |
| 124. |
Current liabilities are equals to------------------------------- |
| A. | Working capital +current assets |
| B. | Working capital-current assets |
| C. | Current assets-working capital |
| D. | Current asset + working capital |
| Answer» C. Current assets-working capital | |
| 125. |
Inflow of fund does not take place due to---------------- |
| A. | Funds from operation |
| B. | Increase in capital |
| C. | Increase in working capital |
| D. | Sale of fixed asset |
| Answer» B. Increase in capital | |
| 126. |
Increase in working capital is----------------------- |
| A. | Source of fund |
| B. | Application of fund |
| C. | Funds from operation |
| D. | Loss from operation |
| Answer» B. Application of fund | |
| 127. |
Salaries Rs.20000,depreciation for the period is Rs.30000 other operating expenses are Rs.9000, net loss for the period is Rs.5000 fund generated from operation is------------------ |
| A. | Rs.25000 |
| B. | Rs.15000 |
| C. | Rs.35000 |
| D. | Rs.14000 |
| Answer» A. Rs.25000 | |
| 128. |
Stock at the end results in----------------------- |
| A. | Application of fund |
| B. | Source of fund |
| C. | Inflow of fund |
| D. | None of these |
| Answer» B. Source of fund | |
| 129. |
Depreciation is a source of fund------------------- |
| A. | Yes |
| B. | No |
| C. | Both yes or no |
| D. | None of these |
| Answer» A. Yes | |
| 130. |
Stock in the beginning results in----------- |
| A. | Application of funds |
| B. | Source of fund |
| C. | Inflow of fund |
| D. | None of these |
| Answer» A. Application of funds | |
| 131. |
Which of the following does not affect the fund flow statement |
| A. | Issue of shares |
| B. | Borrowing |
| C. | Repayment of loan |
| D. | Payment to creditors |
| Answer» D. Payment to creditors | |
| 132. |
Which of the following does not affect working capital--------- |
| A. | Bank overdraf |
| B. | Debenture |
| C. | Cash |
| D. | Bank |
| Answer» B. Debenture | |
| 133. |
Proposed dividend is a-------- |
| A. | Current liability |
| B. | Current asset |
| C. | Noncurrent liability |
| D. | Expense |
| Answer» A. Current liability | |
| 134. |
Cash flow statement is prepared by taking the ------------- balance of cash |
| A. | Opening balance |
| B. | Closing balance |
| C. | Monthly balance |
| D. | Others |
| Answer» A. Opening balance | |
| 135. |
Decrease in a creditor is a---------------- of cash |
| A. | Inflow |
| B. | No flow of cash |
| C. | Outflow |
| D. | None of these |
| Answer» C. Outflow | |
| 136. |
Goodwill written off is-----------to the net profit made during the year for calculating the cash from operation |
| A. | Added back |
| B. | Deducted |
| C. | Decreased |
| D. | None of these |
| Answer» A. Added back | |
| 137. |
Provision for tax is shown as a part of-----------activity |
| A. | financing |
| B. | investing |
| C. | operating |
| D. | others |
| Answer» C. operating | |
| 138. |
Purchase of fixed asset is classified as------activity |
| A. | financing |
| B. | investing |
| C. | operating |
| D. | others |
| Answer» B. investing | |
| 139. |
Purchase of building by issue of debenture is a---------item and it is ignored in cash flow statement |
| A. | cash |
| B. | non-cash |
| C. | non-operating |
| D. | current |
| Answer» B. non-cash | |
| 140. |
Cash flow statement is based on past records, so it is---------in nature |
| A. | historical |
| B. | future item |
| C. | past |
| D. | none of these |
| Answer» A. historical | |
| 141. |
Cash equivalent are usually of short term but highly -----------------investments |
| A. | liquid |
| B. | Fixed |
| C. | Changed |
| D. | None of these |
| Answer» A. liquid | |
| 142. |
Cash flow statements (based on AS-3) should be prepared and presented under------------------ method. |
| A. | Direct |
| B. | Indirect |
| C. | Permanence |
| D. | None of these |
| Answer» B. Indirect | |
| 143. |
Income tax paid should be shown separately as the cash flows from----------- activities. |
| A. | Financing |
| B. | Investing |
| C. | Operating |
| D. | Others |
| Answer» C. Operating | |
| 144. |
Buy back of shares is shown under----------------------- |
| A. | operating activities |
| B. | investing activities |
| C. | financing activities |
| D. | none of these |
| Answer» C. financing activities | |
| 145. |
Increase in prepaid expenses--------------------cash |
| A. | Increases |
| B. | Added |
| C. | Decreases |
| D. | None of these |
| Answer» C. Decreases | |
| 146. |
Dividend paid are classified under-------------------activities |
| A. | Financing |
| B. | Investing |
| C. | Operating |
| D. | Others |
| Answer» A. Financing | |
| 147. |
Cash payment suppliers of goods and services are shown under-------------. |
| A. | Operating |
| B. | Financing |
| C. | Investing |
| D. | None of the above |
| Answer» A. Operating | |
| 148. |
20,000 equity shares of Rs.10 each issued at 10% premium , cash is Rs------------------- |
| A. | Rs.2,00,000 |
| B. | Rs.2,10,000 |
| C. | Rs.2,15,000 |
| D. | Rs.2,20,000 |
| Answer» D. Rs.2,20,000 | |
| 149. |
Preliminary expenses written off is-------- |
| A. | Cash transaction |
| B. | Non-cash transaction |
| C. | Credit transaction |
| D. | None of the above |
| Answer» B. Non-cash transaction | |
| 150. |
Investment costing Rs.50,000 at the loss of Rs.3,000 cash outflow in investing activity is -------- |
| A. | Rs.53,000 |
| B. | Rs.50,000 |
| C. | Rs.47,000 |
| D. | Rs.48,000 |
| Answer» C. Rs.47,000 | |
| 151. |
Cash from operations is equal to------------------ |
| A. | net profit afer tax |
| B. | net profit plus increase in current asset |
| C. | net profit plus decrease in current liabilities |
| D. | net profit plus non-cash expenses plus decrease in current assets. |
| Answer» D. net profit plus non-cash expenses plus decrease in current assets. | |
| 152. |
Increase in the amount of bills receivable results in-------------- |
| A. | decrease in cash |
| B. | increase in cash |
| C. | no change in cash |
| D. | none of these |
| Answer» A. decrease in cash | |
| 153. |
Increase in the amount of bills payable results in---------- |
| A. | Decrease in cash |
| B. | Increase in cash |
| C. | No change in cash |
| D. | None of these |
| Answer» B. Increase in cash | |
| 154. |
Which of the following is not an inflow of cash |
| A. | Sale of fixed asset |
| B. | Issue of debentures for cash |
| C. | Funds from operation |
| D. | Acquisition of assets |
| Answer» D. Acquisition of assets | |
| 155. |
Dividend paid under AS- 3 is---------- |
| A. | Cash flow from financing activity |
| B. | Cash flow from operating activity |
| C. | Cash flow from investing activity |
| D. | None of these |
| Answer» C. Cash flow from investing activity | |
| 156. |
Cash flows include |
| A. | Cash payments only |
| B. | Cash receipts only |
| C. | Cash receipts and payments |
| D. | Cash and noncash incomes and expenses. |
| Answer» C. Cash receipts and payments | |
| 157. |
Cash flow statement is based on---------- |
| A. | Cash basis of accounting |
| B. | Accounting equation |
| C. | Accrual basis of accounting |
| D. | None of these |
| Answer» A. Cash basis of accounting | |
| 158. |
Proposed dividend is classified as----------- |
| A. | Investing activity |
| B. | Financing activity |
| C. | Operating activity |
| D. | Cash equivalent |
| Answer» C. Operating activity | |
| 159. |
Profit on sale of machinery comes under------------ |
| A. | Investing activity |
| B. | Financing activity |
| C. | Operating activity |
| D. | None of these |
| Answer» C. Operating activity | |
| 160. |
Sale of patent is classified under--------- |
| A. | Investing activity |
| B. | Financing activity |
| C. | Operating activity |
| D. | None of these |
| Answer» A. Investing activity | |
| 161. |
Rent received by a company (whose main business is real estate) is classified as |
| A. | Investing activity |
| B. | Financing activity |
| C. | Operating activity |
| D. | Cash equivalent |
| Answer» C. Operating activity | |
| 162. |
AS-3 is related to |
| A. | Cash flow statement |
| B. | Funds flow statement |
| C. | Balance sheet |
| D. | Income statements |
| Answer» A. Cash flow statement | |
| 163. |
A system of control where persons are made responsible for control of cost |
| A. | Cost control |
| B. | Production control |
| C. | Responsibility accounting |
| D. | Budgeting |
| Answer» C. Responsibility accounting | |
| 164. |
A system where accounting is established with responsibility |
| A. | Responsibility accounting |
| B. | Financial accounting |
| C. | Cost accounting |
| D. | Budgeting |
| Answer» A. Responsibility accounting | |
| 165. |
A segment of activity for which cost is accumulated |
| A. | Service centre |
| B. | Cost centre |
| C. | Profit centre |
| D. | Investment centre |
| Answer» B. Cost centre | |
| 166. |
A segment of activity for which both revenue and cost are accumulated |
| A. | Investment centre |
| B. | Project centre |
| C. | Cost centre |
| D. | Responsibility centre |
| Answer» B. Project centre | |
| 167. |
A centre at which proper utilization of asset used in the centre |
| A. | Investment centre |
| B. | Profit centre |
| C. | Cost centre |
| D. | Responsibility centre |
| Answer» A. Investment centre | |
| 168. |
A segment of activity for which revenues are accumulated |
| A. | investment centre |
| B. | profit centre |
| C. | revenue centre |
| D. | Responsibility |
| Answer» C. revenue centre | |
| 169. |
A segment of activity or area of operation for which cost is collected is known as ----------------- |
| A. | Cost centre |
| B. | Profit centre |
| C. | Investment centre |
| D. | Responsibility centre |
| Answer» A. Cost centre | |
| 170. |
A segment of activity or area of operation for which revenues are accumulated is known as ------ |
| A. | Cost centre |
| B. | Profit centre |
| C. | Revenue centre |
| D. | Investment centre |
| Answer» C. Revenue centre | |
| 171. |
A control system where accountability is established with responsibility is known as -------------- |
| A. | Cost accounting |
| B. | Responsibility accounting |
| C. | Financial accounting |
| D. | None of the above |
| Answer» B. Responsibility accounting | |
| 172. |
--------- is a system where persons are made responsible for control of cost |
| A. | Cost accounting |
| B. | Financial accounting |
| C. | Responsibility accounting |
| D. | None of these |
| Answer» C. Responsibility accounting | |
| 173. |
------------- centre is one for which both revenue and cost are accumulated |
| A. | Cost centre |
| B. | Revenue centre |
| C. | Service centre |
| D. | Profit centre |
| Answer» D. Profit centre | |
| 174. |
A firm’s investment in current asset is known as ---------------- |
| A. | Net working capital |
| B. | Gross working capital |
| C. | Average working capital |
| D. | None of these |
| Answer» B. Gross working capital | |
| 175. |
A transaction that doesn’t make any change in working capital position is --------- |
| A. | Inflow of fund |
| B. | Out flow of fund |
| C. | Non fund transaction |
| D. | Fund transaction |
| Answer» C. Non fund transaction | |
| 176. |
The mirror which reflects the true financial position of the business as on a particular date |
| A. | Fund flow statement |
| B. | Cash flow statement |
| C. | Balance sheet |
| D. | Income statement |
| Answer» C. Balance sheet | |
| 177. |
An appropriation of profit is --------------------- |
| A. | Current asset |
| B. | Non current asset |
| C. | Provision for taxation |
| D. | Non current liability |
| Answer» C. Provision for taxation | |
| 178. |
Fund flow statement are very useful in planning intermediate and ----------- financing. |
| A. | Short term |
| B. | Long term |
| C. | Medium term |
| D. | None of these |
| Answer» B. Long term | |
| 179. |
The two concept of working capital are gross working capital and -------------------------- |
| A. | Net working capital |
| B. | Average working capital |
| C. | Opening working capital |
| D. | Closing working capital |
| Answer» A. Net working capital | |
| 180. |
Excess of current asset over current liability is known as ------------- |
| A. | Gross working capital |
| B. | Net working capital |
| C. | Average working capital |
| D. | None of these |
| Answer» B. Net working capital | |
| 181. |
Flow of fund means change in ------------------- |
| A. | Working capital |
| B. | Gross capital |
| C. | Net capital |
| D. | Average capital |
| Answer» A. Working capital | |
| 182. |
An essential tool of short term financial analysis |
| A. | Fund flow statement |
| B. | Statement of uses and application of funds |
| C. | Cash flow statement |
| D. | Ratio analysis |
| Answer» C. Cash flow statement | |
| 183. |
A statement depicting the reasons for the change in cash position from one period to another |
| A. | Fund flow statement |
| B. | Statement of uses and application of funds |
| C. | Cash flow statement |
| D. | Ratio analysis |
| Answer» C. Cash flow statement | |
| 184. |
Cash flow statement shows the causes for changes in__________ |
| A. | Cash balance |
| B. | Fund |
| C. | Working capital |
| D. | None of these |
| Answer» A. Cash balance | |
| 185. |
A statement prepared in the form of report |
| A. | Fund flow |
| B. | Cash flow |
| C. | Ratio |
| D. | Balance sheet |
| Answer» B. Cash flow | |
| 186. |
Cash flow is a part of |
| A. | Fund flow |
| B. | Balance sheet |
| C. | Income statement |
| D. | Comparative statement |
| Answer» A. Fund flow | |
| 187. |
Cash receipts from royalties is an example of cash flow from__________ |
| A. | Investing activities |
| B. | Financing activities |
| C. | Operating activities |
| D. | None of these |
| Answer» C. Operating activities | |
| 188. |
Cash flow from financing activities include payment of interest on borrowing and___ to share holders |
| A. | Dividend |
| B. | Interest |
| C. | Bonus |
| D. | Bonus shares |
| Answer» A. Dividend | |
| 189. |
When the opening balance of cash and cash equivalent is added to the net increase , the total will be the____________ |
| A. | Closing balance of cash |
| B. | Closing balance of bank |
| C. | Opening balance of bank |
| D. | Closing balance of cash and cash equivalent |
| Answer» B. Closing balance of bank | |
| 190. |
Cash payment on redemption of debenture is an example of cash flow from _________ activities |
| A. | Operating |
| B. | Investing |
| C. | Financing |
| D. | Others |
| Answer» C. Financing | |
Done Reading?