Description : Cash payment on redemption of debenture is an example of cash flow from _________ activities a) Operating b) Investing c) Financing d) Others
Last Answer : c) Financing
Description : If the intrinsic values of shares exchanged are not equal, the difference is paid in ........... (A) Cash (B) Debenture (C) Pref. share (D)Assets
Last Answer : (A) Cash
Description : Which of the following does not affect working capital--------- a) Bank overdraf b) Debenture c) Cash d) Bank
Last Answer : b) Debenture
Description : Cash flow statement is based on past records, so it is---------in nature a) historical b) future item c) past d) none of these
Last Answer : a) historical
Description : As per AS-14 purchase consideration is payable to _________________. (A) Shareholders (B) Creditors (C) Debenture holders (D) Bank
Last Answer : Shareholders
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 : Cash receipts from royalties is an example of cash flow from__________ a) Investing activities b) Financing activities c) Operating activities d) None of these
Last Answer : a) Investing activities
Description : 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
Last Answer : c) Cash flow from investing activity
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 : 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
Last Answer : d) Payment to creditors
Description : Cash flow is a part of a) Fund flow b) Balance sheet c) Income statement d) Comparative statement
Last Answer : c) Income statement
Description : A statement prepared in the form of report a) Fund flow b) Cash flow c) Ratio d) Balance sheet
Last Answer : a) Fund flow
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 : 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 : 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 : Cash flow statement is based on---------- a) Cash basis of accounting b) Accounting equation c) Accrual basis of accounting d) None of these
Last Answer : a) Cash basis of accounting
Description : Cash flow statement is prepared by taking the ------------- balance of cash a) Opening balance b) Closing balance c) Monthly balance d) Others
Last Answer : a) Opening balance
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 : 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 : 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 : A sales discount does not a. provide the purchaser with a cash saving. b. reduce the amount of cash received from a credit sale. c. increase a contra-revenue account. d. increase an operating expense account.
Last Answer : d. increase an operating expense account.
Description : The operating cycle of a company is the average time that is required to go from cash to a. sales in producing revenues. b. cash in producing revenues. c. inventory in producing revenues. d. accounts receivable in producing revenues.
Last Answer : b. cash in producing revenues.
Description : 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
Last Answer : c) Operating activity
Description : Proposed dividend is classified as----------- a) Investing activity b) Financing activity c) Operating activity d) Cash equivalent
Description : Cash payment suppliers of goods and services are shown under-------------. a) Operating b) Financing c) Investing
Last Answer : a) Operating
Description : Income tax paid should be shown separately as the cash flows from----------- activities. a) Financing b) Investing c) Operating d) Others
Last Answer : c) Operating
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 : Net Assets of D.Co. for Purchase Consideration worth Rs. 4,00,000. At the time of absorption, the company has paid 32,000 equity shares each of Rs.10 each at 10% premium, then remaining cash will be - (A) Rs. 48,000 (B) Rs. 84,000 (C) Rs. 80,000 (D) Rs. 90,000
Last Answer : (A) Rs. 48,000
Description : A ltd is a manufacturing company that has no production resource limitations for the foreseeable future. The Managing Director has asked the company mangers to coordinate the preparation of their budgets for the next financial year. In what order ... 5), (3), (2) (d) (4), (5), (3), (1), (2)
Last Answer : (b) (1), (5), (3), (4), (2)
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 : Inventories is a non-monetary item.
Last Answer : TRUE
Description : Cash flow from financing activities include payment of interest on borrowing and___ to share holders a) Dividend b) Interest c) Bonus d) Bonus shares
Last Answer : a) Dividend
Description : Cash flow statements (based on AS-3) should be prepared and presented under------------------ method. a) Direct b) Indirect c) Permanence d) None of these
Last Answer : b) Indirect
Description : Decrease in a creditor is a---------------- of cash a) Inflow b) No flow of cash c) Outflow d) None of these
Last Answer : c) Outflow
Description : Furniture sold for cash -----funds flow a) Increases b) Decreases c) Deducted d) None of these
Last Answer : a) Increases
Description : Comparison and interpretation of ratio is known as --------------------- a) Fund flow analysis b) Cash flow analysis c) Ratio analysis d) Trend analysis
Last Answer : c) Ratio analysis
Description : Yard stick which measures relationship between two variables a) Financial statements b) Ratio c) Fund Flow analysis d) Cash flow analysis
Last Answer : b) Ratio
Description : . The first item listed under current liabilities is usually a. accounts payable. b. notes payable. c. salaries payable. d. taxes payable.
Last Answer : b. notes payable.
Description : Under ------------------------ each item of expenses taken as a percentage on net sales a) Comparative income statement b) Comparative balance sheet c) Common size Balance sheet d) Common size Income Statement
Last Answer : d) Common size Income Statement
Description : Non-Monetary item exchange differences shall be ---------- as per ICDS-IV a) Recognised b) Not recognised c) Ignored d) Partially recognized and partially not
Last Answer : b) Not recognised
Description : Which of the following will affect the flow of fund a) a transaction affecting current and non-current accounts b) a transaction affecting both non-current accounts c) a transaction affecting both current accounts d) both a) and b)
Last Answer : a) a transaction affecting current and non-current accounts
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 : Which of the following statements is/are correct? 1. A materials requisition note is used to record the issue of direct material to a specific job. 2. A typical job cost will contain actual costs for material, labour and production ... 1) and (2) only (c) (1) and (3) only (d) (2) and (3) only
Last Answer : (c) (1) and (3) only
Description : Preliminary expenses written off is-------- a) Cash transaction b) Non-cash transaction c) Credit transaction d) None of the above
Last Answer : b) Non-cash transaction
Description : In the balance sheet, ending merchandise inventory is reported a. in current assets immediately following accounts receivable. b. in current assets immediately following prepaid expenses. c. in current assets immediately following cash. d. under property, plant, and equipment.
Last Answer : a. in current assets immediately following accounts receivable.
Description : The current assets should be listed on Cerner's balance sheet in the following order: a. cash, accounts receivable, prepaid insurance, equipment. b. cash, prepaid insurance, supplies, ... receivable, prepaid insurance, supplies. d. equipment, supplies, prepaid insurance, accounts receivable, cash
Last Answer : c. cash, accounts receivable, prepaid insurance, supplies.
Description : It is not true that current assets are assets that a company expects to a. realize in cash within one year. b. sell within one year. c. use up within one year. d. acquire within one year.
Last Answer : d. acquire within one year.
Description : Which statement about long-term investments is not true? a. They will be held for more than one year. b. They are not currently used in the operation of the business. c. They include investments in stock of other companies and land held for future use. d. They can never include cash accounts.
Last Answer : d. They can never include cash accounts.
Description : ommon size Income Statement present the various items as a percentage of ---------------- a) Sales b) Credit sales c) Cash sales
Last Answer : a) Sales