McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Business Administration (BBA) .
Chapters
| 1. |
A company has to prepare its balance sheet once in.. |
| A. | six months |
| B. | two years |
| C. | a year |
| D. | as and when it needs |
| Answer» C. a year | |
| 2. |
Income statement of a business shows… |
| A. | net profit |
| B. | net operating result of specified period |
| C. | net loss |
| D. | none of these |
| Answer» B. net operating result of specified period | |
| 3. |
The statement which shows the periodical increase or decrease of funds is called___________ statement. |
| A. | funds flow |
| B. | cash flow |
| C. | income |
| D. | working capital |
| Answer» A. funds flow | |
| 4. |
Fund flow statement is based on the concept of… |
| A. | business entity |
| B. | accounting period |
| C. | going concern |
| D. | all of the above |
| Answer» C. going concern | |
| 5. |
Funds means… |
| A. | money |
| B. | cash |
| C. | machinery |
| D. | any form of financial resources |
| Answer» D. any form of financial resources | |
| 6. |
Which of the following is the component of current assets? |
| A. | stock |
| B. | prepaid expenses |
| C. | income earned but not received |
| D. | all of the above |
| Answer» D. all of the above | |
| 7. |
The term flow of funds refers to… |
| A. | change in funds |
| B. | change in working capital |
| C. | both |
| D. | none |
| Answer» C. both | |
| 8. |
Transaction between_________ may cause the flow of funds. |
| A. | current assets and fixed assets |
| B. | current assets and long term liabilities, and capital |
| C. | current liabilities and fixed assets |
| D. | all of the above |
| Answer» D. all of the above | |
| 9. |
The term current account refers to…. |
| A. | current assets |
| B. | current liabilities |
| C. | both |
| D. | none |
| Answer» C. both | |
| 10. |
The term non-current account refers to… |
| A. | capital |
| B. | liabilities |
| C. | long term liabilities |
| D. | both (a) & (c) |
| Answer» D. both (a) & (c) | |
| 11. |
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 | |
| 12. |
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 | |
| 13. |
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 | |
| 14. |
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 | |
| 15. |
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 | |
| 16. |
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 | |
| 17. |
Funds flow statement is a substitute for… |
| A. | income statement |
| B. | balance sheet |
| C. | both |
| D. | none |
| Answer» D. none | |
| 18. |
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 | |
| 19. |
Which of the following statement is dynamic in nature? |
| A. | balance sheet |
| B. | funds flow |
| C. | both |
| D. | income statement |
| Answer» B. funds flow | |
| 20. |
Funds flow statement is complementary to… |
| A. | balance sheet |
| B. | income statement |
| C. | both |
| D. | none |
| Answer» C. both | |
| 21. |
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 | |
| 22. |
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 | |
| 23. |
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 | |
| 24. |
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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