Description : -------------------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
Last Answer : a) Flow of funds
Description : Net decrease in working capital results in --------------------of funds a) Source b) Application c) No change d) None of these
Last Answer : b) Application
Description : 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
Last Answer : a) Fund flow statement
Description : 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
Last Answer : c) Cash flow statement
Description : Funds from operations are --------------of funds a) Application b) Uses c) Sources d) No change
Last Answer : c) Sources
Description : 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
Last Answer : d) Acquisition of assets
Description : 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
Last Answer : b) Increase in capital
Description : 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
Last Answer : a) Deducted
Description : The ratio which shows the relationship between borrowed funds and owners capital is --------------- a) Proprietary ratio b) Debt equity ratio c) Capital gearing ratio d) Fixed asset ratio
Last Answer : b) Debt equity ratio
Description : Stock in the beginning results in----------- a) Application of funds b) Source of fund c) Inflow of fund d) None of these
Last Answer : a) Application of funds
Description : Increase in working capital is----------------------- a) Source of fund b) Application of fund c) Funds from operation d) Loss from operation
Last Answer : b) Application of fund
Description : Salary outstanding is----- of funds a) Source b) Inflow c) Application d) No change
Last Answer : c) Application
Description : Furniture sold for cash -----funds flow a) Increases b) Decreases c) Deducted d) None of these
Last Answer : a) Increases
Description : 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
Last Answer : d) net profit plus non-cash expenses plus decrease in current
Description : 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
Last Answer : a) Changes in working capital
Description : Goods purchased on credit-----------inflow of funds a) Does not result b) Does result c) Change d) None of these
Last Answer : a) Does not result
Description : 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
Last Answer : a) Rs.60000
Description : 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
Last Answer : c) Purchase of funds
Description : Net increase in working capital results in----------------of funds a) sources b) inflow c) no change d) application
Last Answer : d) application
Description : f a company determines cost of goods sold each time a sale occurs, it a. must have a computer accounting system. b. uses a combination of the perpetual and periodic inventory systems. c. uses a periodic inventory system. d. uses a perpetual inventory sy
Last Answer : a. must have a computer accounting system.
Description : On October 4, 2008, Terry Corporation had credit sales transactions of $2,800 from merchandise having cost $1,900. The entries to record the day's credit transactions include a a. debit of $2,800 to ... c. debit of $1,900 to Merchandise Inventory. d. credit of $1,900 to Cost of Goods Sold.
Last Answer : b. credit of $2,800 to Sales.
Description : . A credit memorandum is prepared when a. an employee does a good job. b. goods are sold on credit. c. goods that were sold on credit are returned. d. customers refuse to pay their accounts.
Last Answer : c. goods that were sold on credit are returned.
Description : In a perpetual inventory system, the Cost of Goods Sold account is used a. only when a cash sale of merchandise occurs. b. only when a credit sale of merchandise occurs. c. only when a sale of merchandise occurs. d. whenever there is a sale of merchandise or a return of merchandise sold.
Last Answer : b. only when a credit sale of merchandise occurs.
Description : Which statement is true? 1) The balance of payments depends on the principle of double-entry accounting. 2) Decrease in assets and increase in liabilities of net worth represent credits or sources of funds. 3) The balance of ... period of time. A. Only 1 B. Only 2 C. Only 3 D. 1, 2 and 3
Last Answer : D. 1, 2 and 3
Description : Accounting question: is it a fixed asset if multiple items total over $500?
Last Answer : The price is irrelevant to the definition of a fixed asset. The common definition is applicable to items not readily convertible to cash, such as your house or the new furnace in your house—things you are unlikely to buy or sell in a hock shop or yard sale.
Description : On a classified balance sheet, merchandise inventory is classified as a. an intangible asset. b. property, plant, and equipment. c. a current asset. d. a long-term investment.
Last Answer : c. a current asset.
Description : If a customer agrees to retain merchandise that is defective because the seller is willing to reduce the selling price, this transaction is known as a sales a. discount. b. return. c. contra asset. d. allowance.
Last Answer : b. return.
Description : The Sales Returns and Allowances account is classified as a(n) a. asset account. b. contra asset account. c. expense account.
Last Answer : b. contra asset account.
Description : An intangible asset a. does not have physical substance, yet often is very valuable. b. is worthless because it has no physical substance. c. is converted into a tangible asset during the operating cycle. d. cannot be classified on the balance sheet because it lacks physical substance.
Last Answer : a. does not have physical substance, yet often is very valuable.
Description : A current asset is a. the last asset purchased by a business. b. an asset which is currently being used to produce a product or service. c. usually found as a separate classification in the income statement. d. an asset that a company expects to convert to cash or use up within one year.
Last Answer : d. an asset that a company expects to convert to cash or use up within one year.
Description : Office Equipment is classified in the balance sheet as a. a current asset. b. property, plant, and equipment. c. an intangible asset. d. a long-term investment.
Last Answer : b. property, plant, and equipment.
Description : The closing entry process consists of closing a. all asset and liability accounts. b. out the retained earnings account. c. all permanent accounts. d. all temporary accounts.
Last Answer : d. all temporary accounts.
Description : Amount of calls in advance is treated as a) Secured creditor b) Preferential creditor c) Asset not specifically pledged d) Unsecured creditor
Last Answer : b) Preferential creditor
Description : ___________ value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm‟s length transaction.
Last Answer : Fair,
Description : Exchange rate is the rate at which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction.
Last Answer : FALSE
Description : Following is not a fixed asset - (A) Goodwill (B) Loose Tools (C) Copyright (D) Livestock
Last Answer : B) Loose Tools
Description : Kirti Co’s Balance Sheet shows Fixed Asset Rs. 3,60,000. At the time of absorption calculation of Net Assets is 10% less than the market value, then market value of such fixed assets is ............ (A) Rs. 3,24,000 (B) Rs. 4,00,000 (C) Rs. 4,20,000 (D) None of these
Last Answer : (B) Rs. 4,00,000
Description : In computing purchase consideration by ‘net asset method’ all assets including fictitious assets should be considered.
Description : 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
Last Answer : a) Gross working capital
Description : An appropriation of profit is --------------------- a) Current asset b) Non current asset c) Provision for taxation d) Non current liability
Last Answer : c) Provision for taxation
Description : 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
Last Answer : b) Gross working capital
Description : A centre at which proper utilization of asset used in the centre a) Investment centre b) Profit centre c) Cost centre d) Responsibility centre
Last Answer : a) Investment centre
Description : Purchase of fixed asset is classified as------activity a) financing b) investing c) operating d) others
Last Answer : Purchase of fixed asset is classified as------activity a) financing b) investing c) operating d) others
Description : Proposed dividend is a-------- a) Current liability b) Current asset c) Noncurrent liability d) Expense
Last Answer : a) Current liability
Description : 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
Last Answer : c) Current assets-working capital
Description : Which of the following is non-current asset a) Goodwill b) Debtors c) Stock d) Prepaid rent
Last Answer : a) Goodwill
Description : Working capital is expressed as------ a) Current asset-fixed asset b) Fixed assets-current liabilities c) Current assets-current liabilities d) None of these
Last Answer : c) Current assets-current liabilities
Description : Net capital employed is equal to --------------- a) Total assets minus liabilities b) Fixed asset plus net working capital c) Total asset minus long-term liabilities d) Total assets
Last Answer : b) Fixed asset plus net working capital
Description : Stock and prepaid expanses are not included in ---------------- a) Current asset b) Fixed asset c) Current liability d) Quick asset
Last Answer : d) Quick asset
Description : The relationship between total outside liabilities and total assets can be indicated through ------------ a) Fixed asset ratio b) Solvency ratio c) Fixed asset turn over ratio d) Proprietary ratio
Last Answer : b) Solvency ratio