McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Commerce (B Com) .
| 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 | |
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