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

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
by

1 Answer

Answer :

d) net profit plus non-cash expenses plus decrease in current
by

Related questions

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

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Last Answer : b) Fixed asset plus net working capital

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

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Last Answer : a) Net profit

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 capital b) Decrease of working capital by Rs.80,000 c) Increase of working capital by Rs.40,000 d) None of these

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Last Answer : a) No change in working capital

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

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Last Answer : b. revenues exceed cost of goods sold.

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Last Answer : c) Provision for taxation

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Last Answer : c. cost of goods sold, net sales revenue

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Last Answer : b. cost of goods sold.

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Financial Statements provide a summary of -------------------------- a) Accounts b) Assets c) Liabilities d) Expenses

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Last Answer : a) Accounts

Gross assets are Rs.1,01,000, fictitious assets Rs.350 are included in the gross assets. External liabilities are Rs.7,500. 6% prefer share capital is Rs.45,000. Equity capital is 4,500 equity shares of Rs.10 each fully paid. Average expected profit is Rs.8,500. Transfer to reserves is 10%. Pref. dividend is payable. NRR is 9%. The Net Asset Value Per share is A Rs.11 B Rs.10.70 C Rs.15 D Rs.20s

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Last Answer : Rs.10.70

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Last Answer : c. relationship between current assets and current liabilities.

Decrease in current liabilities --------------------working capital a) Increases b) Decrease c) Deducts d) Reduces

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Last Answer : a) Increases

Pick out the wrong statement. (A) Gross revenue is that total amount of capital received as a result of the sale of goods or service (B) Net revenue is the total profit remaining after deducting all costs excluding taxes (C) The ratio of immediately available cash to the total current liabilities is known as the cash ratio (D) Consolidated income statement based on a given time period indicates surplus capital and shows the relationship among total income, costs & profit over the time interval

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Income tax payable come under ------------------ a) Long term liability b) Long term fund c) Current liability d) Other liabilities

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Increase in prepaid expenses--------------------cash a) Increases b) Added c) Decreases d) None of these

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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.

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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

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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

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Last Answer : b) Gross working capital

Preliminary expenses written off is-------- a) Cash transaction b) Non-cash transaction c) Credit transaction d) None of the above

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Ingrid’s Fashions sold merchandise for $38,000 cash during the month of July. Returns that month totaled $800. If the company’s gross profit rate is 40%, Ingrid’s will report monthly net sales revenue and cost of goods sold of a. $38,000 and $22,800. b. $37,200 and $14,880. c. $37,200 and $22,320. d. $38,000 and $22,320.

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Last Answer : c. $37,200 and $22,320.

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

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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.

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When the liquated company has adequate cash to pay off all liabilities , the interest on liabilities should be paid : a) Upto the date of commencement of insolvency proceedings b) Upto the date of actual payment of liabilities c) Upto the date of payment to shareholders d) None of the these

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Last Answer : d) None of the these

Increases in current liabilities --------------working capital a) Increase b) Decreases c) Added d) None of these

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Description : Closing entries are made a. in order to terminate the business as an operating entity. b. so that all assets, liabilities, and Stockholders' equity accounts will have zero balances when the ... ) and dividends to the retained earnings account. d. so that financial statements can be prepared.

Last Answer : c. in order to transfer net income (or loss) and dividends to the retained earnings account. unt.

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

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Last Answer : c) Operating profit ratio

What is working capital? a. The funds needed for the day to day running of the company b. The cash on hand at the end of the day c. Profits less current liabilities d. The amount of funds a company needs to run indefinitely e. Total sales less total expenses

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Last Answer : a. The funds needed for the day to day running of the company

A centre at which proper utilization of asset used in the centre a) Investment centre b) Profit centre c) Cost centre d) Responsibility centre

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

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

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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

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Last Answer : (B) Rs. 4,00,000

In computing purchase consideration by ‘net asset method’ all assets including fictitious assets should be considered.

Description : In computing purchase consideration by ‘net asset method’ all assets including fictitious assets should be considered.

Last Answer : FALSE

The ratio that shows the relationship between fixed asset to share holders fund a) Fixed asset to net worth b) Fixed asset ratio c) Fixed assets turn over ratio d) Net worth ratio

Description : The ratio that shows the relationship between fixed asset to share holders fund a) Fixed asset to net worth b) Fixed asset ratio c) Fixed assets turn over ratio d) Net worth ratio

Last Answer : a) Fixed asset to net worth

When the opening balance of cash and cash equivalent is added to the net increase , the total will be the____________ a) Closing balance of cash b) Closing balance of bank c) Opening balance of bank d) Closing balance of cash and cash equivalent

Description : When the opening balance of cash and cash equivalent is added to the net increase , the total will be the____________ a) Closing balance of cash b) Closing balance of bank c) Opening balance of bank d) Closing balance of cash and cash equivalent

Last Answer : b) Closing balance of bank

Asset sold on credit is---- of funds a) Application b) Uses c) Source d) Decrease

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Last Answer : c) Source

Cole Company has sales revenue of $39,000, cost of goods sold of $24,000 and operating expenses of $9,000 for the year ended December 31. Cole's gross profit is a. $30,000. b. $15,000. c. $6,000.

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Last Answer : b. $15,000.

Indicate which one of the following would appear on the income statement of both a merchandising company and a service company. a. Gross profit b. Operating expenses c. Sales revenues d. Cost of goods sold

Description : Indicate which one of the following would appear on the income statement of both a merchandising company and a service company. a. Gross profit b. Operating expenses c. Sales revenues d. Cost of goods sold

Last Answer : b. Operating expenses

Which of the following expressions is incorrect? a. Gross profit – operating expenses = operating income b. Sales – cost of goods sold – operating expenses = operating income c. Operating income + operating expenses = gross profit d. Operating expenses – cost of goods sold = gross profit

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Last Answer : d. Operating expenses – cost of goods sold = gross profit

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

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Last Answer : a) Rs.60000

In terms of liquidity, merchandise inventory is a. more liquid than cash. b. more liquid than accounts receivable. c. more liquid than prepaid expenses. d. less liquid than store equipment.

Description : In terms of liquidity, merchandise inventory is a. more liquid than cash. b. more liquid than accounts receivable. c. more liquid than prepaid expenses. d. less liquid than store equipment.

Last Answer : c. more liquid than prepaid expenses.

Cash flows include a) Cash payments only b) Cash receipts only c) Cash receipts and payments d) Cash and noncash incomes and expenses.

Description : Cash flows include a) Cash payments only b) Cash receipts only c) Cash receipts and payments d) Cash and noncash incomes and expenses.

Last Answer : c) Cash receipts and payments

Which of the following is non-current asset a) Goodwill b) Debtors c) Stock d) Prepaid rent

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Last Answer : a) Goodwill