Description : Net increase in working capital results in----------------of funds a) sources b) inflow c) no change d) application
Last Answer : d) application
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 : 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 : Asset sold on credit is---- of funds a) Application b) Uses c) Source d) Decrease
Last Answer : c) Source
Description : 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 ... Decrease of working capital by Rs.80,000 c) Increase of working capital by Rs.40,000 d) None of these
Last Answer : a) No change in working capital
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 : Salary outstanding is----- of funds a) Source b) Inflow c) Application d) No change
Last Answer : c) Application
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 : Funds from operations are --------------of funds a) Application b) Uses c) Sources d) No change
Last Answer : c) Sources
Description : Flow of fund means change in ------------------- a) Working capital b) Gross capital c) Net capital d) Average capital
Last Answer : c) Net capital
Description : Current ratio shows----- a) The change in gross profit b) The working capital position c) The liquidity of assets d) The change in net profit
Last Answer : b) The working capital position
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 : 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
Last Answer : a) Net profit
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 : 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
Last Answer : b) Increase in cash
Description : 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
Last Answer : a) decrease in cash
Description : Stock at the end results in----------------------- a) Application of fund b) Source of fund c) Inflow of fund d) None of these
Last Answer : b) Source of fund
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 : 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 a
Last Answer : b) Average working capital
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 : In the fund flow statement, depreciation is---------------- a) Deducted from net profit b) Added to net profit c) Sources of working capital d) Ignored
Last Answer : b) Added to net profit
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 : Decrease in current liabilities --------------------working capital a) Increases b) Decrease c) Deducts d) Reduces
Last Answer : a) Increases
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 : 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 : -------------------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 : 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 : 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 : Following is the application of fund A. Decrease in balance of Fixed Asset B. Decrease in working capital C. Decrease in net profit D. Decrease in preliminary expenses
Last Answer : C. Decrease in net profit
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 : 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
Last Answer : a) Flow of fund
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 : Which of the following statements is not correct? A. For the purpose of Funds Flow Statement, the term 'fund ' generally refers to net working capital B. Funds flow is a wider concept than ... business D. The capitalisation of reserves by the issue of bonus shares also involves flow of funds
Last Answer : D. The capitalisation of reserves by the issue of bonus shares also involves flow of funds
Description : 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
Last Answer : c) Non fund transaction
Description : Fund flow refers to change in----- a) Working capital b) Fixed capital c) Current capital d) Increase in working capital
Last Answer : c) Current capital
Description : Himanshi Ltd. purchase consideration is Rs.22,345 and Net Assets Rs.6,568, then........... (A) Goodwill Rs. 15,777 (B) Capital Reserve Rs. 15,777 (C) Goodwill Rs. 28,913 (D) Capital Reserve Rs. 28,913
Last Answer : (A) Goodwill Rs. 15,777
Description : Net Assets minus Capital Reserve is _________ (A) Goodwill (B) Total assets (C) Purchase consideration (D) None of these
Last Answer : (C) Purchase consideration
Description : When the Net Assets are less than the Purchase Consideration, the difference will be (A) Debited to Goodwill A/c (B) Debited to General Reserve (C) None of these (D) Debited to Capital Reserve
Last Answer : While calculating purchase consideration ............... values of assets is to be considered. (A) Book value (B) Revalued price (C) Average price (D) Capital
Description : Which of the following statement is correct? (A) The amount of Goodwill or Capital Reserve is recorded in the books of purchasing company only (B) The amount of Goodwill or Capital ... value of shares of purchasing company will be taken in to account while calculating purchase consideration.
Last Answer : The amount of Goodwill or Capital Reserve is recorded in the books of purchasing company only
Description : Ratio of net profit before interest and tax to sales is------------------------------ a) Solvency ratio b) Capital gearing c) Operating profit ratio d) None of these
Last Answer : c) Operating profit ratio
Description : AS-3 is related to a) Cash flow statement b) Funds flow statement c) Balance sheet d) Income statements
Last Answer : a) Cash flow statement
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 : ---------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
Last Answer : d) Profit & Loss adjustment account
Description : Furniture sold for cash -----funds flow a) Increases b) Decreases c) Deducted d) None of these
Description : _________ is also known as working capital ratio. (a) Current ratio (b) Quick ratio ((c) Liquid ratio (d) Debt-equity ratio
Last Answer : (a) Current ratio
Description : Cash flow statement shows the causes for changes in__________ a) Cash balance b) Fund c) Working capital d) None of thes
Last Answer : b) Fund
Description : Which of the following does not affect working capital--------- a) Bank overdraf b) Debenture c) Cash d) Bank
Last Answer : b) Debenture
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 : Increase in current assets-------------working capital a) Increases b) Decreases c) Deducts d) Reduces