McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Business Administration (BBA) , Bachelor of Banking and Insurance (BBI) , Bachelor of Commerce (B Com) .
Chapters
| 301. |
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 | |
| 302. |
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 | |
| 303. |
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 | |
| 304. |
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 | |
| 305. |
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 | |
| 306. |
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 | |
| 307. |
Depreciation is a source of fund------------------- |
| A. | Yes |
| B. | No |
| C. | Both yes or no |
| D. | None of these |
| Answer» A. Yes | |
| 308. |
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 | |
| 309. |
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 | |
| 310. |
Which of the following does not affect working capital--------- |
| A. | Bank overdraft |
| B. | Debenture |
| C. | Cash |
| D. | Bank |
| Answer» B. Debenture | |
| 311. |
Proposed dividend is a-------- |
| A. | Current liability |
| B. | Current asset |
| C. | Noncurrent liability |
| D. | Expense |
| Answer» A. Current liability | |
| 312. |
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 | |
| 313. |
Decrease in a creditor is a---------------- of cash |
| A. | Inflow |
| B. | No flow of cash |
| C. | Outflow |
| D. | None of these |
| Answer» C. Outflow | |
| 314. |
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 | |
| 315. |
Provision for tax is shown as a part of-----------activity |
| A. | financing |
| B. | investing |
| C. | operating |
| D. | others |
| Answer» C. operating | |
| 316. |
Purchase of fixed asset is classified as------activity |
| A. | financing |
| B. | investing |
| C. | operating |
| D. | others |
| Answer» B. investing | |
| 317. |
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 | |
| 318. |
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 | |
| 319. |
Cash equivalent are usually of short term but highly -----------------investments |
| A. | liquid |
| B. | Fixed |
| C. | Changed |
| D. | None of these |
| Answer» A. liquid | |
| 320. |
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 | |
| 321. |
Income tax paid should be shown separately as the cash flows from----------- activities. |
| A. | Financing |
| B. | Investing |
| C. | Operating |
| D. | Others |
| Answer» C. Operating | |
| 322. |
Buy back of shares is shown under----------------------- |
| A. | operating activities |
| B. | investing activities |
| C. | financing activities |
| D. | none of these |
| Answer» C. financing activities | |
| 323. |
Increase in prepaid expenses--------------------cash |
| A. | Increases |
| B. | Added |
| C. | Decreases |
| D. | None of these |
| Answer» C. Decreases | |
| 324. |
Dividend paid are classified under-------------------activities |
| A. | Financing |
| B. | Investing |
| C. | Operating |
| D. | Others |
| Answer» A. Financing | |
| 325. |
Cash payment suppliers of goods and services are shown under-------------. |
| A. | Operating |
| B. | Financing |
| C. | Investing |
| D. | None of the above |
| Answer» A. Operating | |
| 326. |
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 | |
| 327. |
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 | |
| 328. |
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 | |
| 329. |
Cash from operations is equal to------------------ |
| A. | net profit after 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. | |
| 330. |
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 | |
| 331. |
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 | |
| 332. |
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 | |
| 333. |
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 | |
| 334. |
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 | |
| 335. |
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 | |
| 336. |
Proposed dividend is classified as----------- |
| A. | Investing activity |
| B. | Financing activity |
| C. | Operating activity |
| D. | Cash equivalent |
| Answer» C. Operating activity | |
| 337. |
Profit on sale of machinery comes under------------ |
| A. | Investing activity |
| B. | Financing activity |
| C. | Operating activity |
| D. | None of these |
| Answer» C. Operating activity | |
| 338. |
Sale of patent is classified under--------- |
| A. | Investing activity |
| B. | Financing activity |
| C. | Operating activity |
| D. | None of these |
| Answer» A. Investing activity | |
| 339. |
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 | |
| 340. |
AS-3 is related to |
| A. | Cash flow statement |
| B. | Funds flow statement |
| C. | Balance sheet |
| D. | Income statements |
| Answer» A. Cash flow statement | |
| 341. |
The information to prepare a flexible budget includes: |
| A. | Total fixed cost, total variable cost |
| B. | Total fixed cost, total variable cost and capacity base |
| C. | Unit fixed cost and unit variable cost |
| D. | Total fixed cost, variable cost per unit, several levels of activity |
| Answer» D. Total fixed cost, variable cost per unit, several levels of activity | |
| 342. |
The scarce factor of production is known as |
| A. | Key factor |
| B. | Linking factor |
| C. | Critical factor |
| D. | All of the above |
| Answer» A. Key factor | |
| 343. |
Which of the following is a budget designed to furnish budgeted costs for any level of activity attained |
| A. | Fixed budget |
| B. | Flexible budget |
| C. | Master budget |
| D. | Production budget |
| Answer» B. Flexible budget | |
| 344. |
Flexible budgets are useful for |
| A. | Planning purpose only |
| B. | Planning, performance evaluation and feedback control |
| C. | Control of performance only |
| D. | Nothing at all |
| Answer» B. Planning, performance evaluation and feedback control | |
| 345. |
The budget that summarize future plans for acquisition of plant facilities and equipment is the |
| A. | Cash budget |
| B. | Sales budget |
| C. | Capital expenditure budget |
| D. | None of the above |
| Answer» C. Capital expenditure budget | |
| 346. |
A report comparing actual results with the budget figure is called a ___________ |
| A. | Budget report |
| B. | Budget performance report |
| C. | Flexible budget report |
| D. | None of the above |
| Answer» A. Budget report | |
| 347. |
Profit plan(or budget) is a |
| A. | Long term financial plan |
| B. | Short term financial plan |
| C. | Long term non financial plan |
| D. | Short term non financial plan |
| Answer» B. Short term financial plan | |
| 348. |
The objectives, procedures, organizational structure and authority and responsibility in writing about a budget is shown in |
| A. | Budget manual |
| B. | Budget plans |
| C. | Budget titles |
| D. | None of the above |
| Answer» A. Budget manual | |
| 349. |
Which budget is prepared after the preparation of all functional budgets |
| A. | Flexible budget |
| B. | Cash budget |
| C. | Master budget |
| D. | Production budget |
| Answer» C. Master budget | |
| 350. |
The overall responsibility for the functions of the budget committee lies on the _____________ |
| A. | Chief accountant |
| B. | Financial executive or controller |
| C. | Budget director or budget officer |
| D. | Top management |
| Answer» C. Budget director or budget officer | |
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