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