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 : 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 : The post-closing trial balance contains only a. income statement accounts. b. balance sheet accounts. c. balance sheet and income statement accounts. d. income statement, balance sheet, and retained earnings statement account
Last Answer : b. balance sheet accounts.
Description : A correcting entry a. must involve one balance sheet account and one income statement account. b. is another name for a closing entry. c. may involve any combination of accounts. d. is a required step in the accounting cycle.
Last Answer : c. may involve any combination of accounts.
Description : Correcting entries a. always affect at least one balance sheet account and one income statement account. b. affect income statement accounts only. c. affect balance sheet accounts only. d. may involve any combination of accounts in need of correction.
Last Answer : d. may involve any combination of accounts in need of correction.
Description : The heading for a post-closing trial balance has a date line that is similar to the one found on a. a balance sheet. b. an income statement. c. an stockholders' equity statement. d. the worksheet.
Last Answer : a balance sheet.
Description : A double rule applied to accounts in the ledger during the closing process implies that a. the account is an income statement account. b. the account is a balance sheet account. c. the account balance is not zero. d. a mistake has been made, since double ruling is prescribed.
Last Answer : a. the account is an income statement account.
Description : The balances that appear on the post-closing trial balance will match the a. income statement account balances after adjustments. b. balance sheet account balances after closing entries. ... statement account balances after closing entries. d. balance sheet account balances after adjustments.
Last Answer : b. balance sheet account balances after closing entries.
Description : The purpose of the post-closing trial balance is to a. prove that no mistakes were made. b. prove the equality of the balance sheet account balances that are carried forward into the ... next accounting period. d. list all the balance sheet accounts in alphabetical order for easy reference.
Last Answer : b. prove the equality of the balance sheet account balances that are carried forward into the next accounting period.
Description : A post-closing trial balance will show a. zero balances for all accounts. b. zero balances for balance sheet accounts. c. only balance sheet accounts. d. only income statement accounts.
Last Answer : c. only balance sheet accounts.
Description : After closing entries are posted, the balance in the retained earnings account in the ledger will be equal to a. the beginning retained earnings reported on the retained earnings statement. b. the amount of ... earnings reported on the balance sheet. c. zero. d. the net income for the period.
Last Answer : . b. the amount of retained earnings reported on the balance sheet.
Description : The income summary account a. is a permanent account. b. appears on the balance sheet. c. appears on the income statement. d. is a temporary account.
Last Answer : d. is a temporary account.
Description : Expressed as a percentage of each asset to total a) Common size P/L A/C b) Common size Balance Sheet c) Comparative Income Statement d) Trend analysis
Last Answer : b) Common size Balance Sheet
Description : Study of the trend of the same items of two or more balance sheets a) Common size Profit and Loss A/C b) Common size balance sheet c) Comparative Income statement d) Comparative Balance Sheet
Last Answer : Common size balance sheet
Description : -------- helps to disclose financial position a) Trial Balance b) Profit and Loss Account c) Balance sheet d) Income Statement
Last Answer : -------- helps to disclose financial position a) Trial Balance b) Profit and Loss Account c) Balance sheet d) Income Statement
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 : 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 : Furniture sold for cash -----funds flow a) Increases b) Decreases c) Deducted d) None of these
Last Answer : a) Increases
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 : 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 reports can be used to diagnose problems on a product by-product basis? a. stock market summary c. cash flow statement b. income statement d. balance sheet
Last Answer : b. income statement
Description : Disclose accounting information a) Balance sheet b) Trading account c) Profit and Loss Account d) Financial statements
Last Answer : d) Financial statements
Description : Return on investment is a---------------- a) Profit and loss account ratio b) Balance sheet ratio c) Combined ratio d) Position statement ratio
Last Answer : c) Combined ratio
Description : Afford full diagnosis of the profitability and financial position a) Preparation of Profit and Loss Account b) Balance Sheet c) Final Accounts d) Analysis of financial statement
Last Answer : d) Analysis of financial statement
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 : 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 : 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 : 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 : 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 : 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 : Current liabilities a. are obligations that the company is to pay within the forthcoming year. b. are listed in the balance sheet in order of their expected maturity. c. are listed in the balance sheet, ... . d. should not include long-term debt that is expected to be paid within the next year.
Last Answer : a. are obligations that the company is to pay within the forthcoming year. b. are listed in the balance sheet in order of their expected maturity.
Description : Balance sheet accounts are considered to be a. temporary stockholders’ accounts. b. permanent accounts. c. capital accounts. d. nominal accounts.
Last Answer : b. permanent accounts.
Description : Land held for future use will be reported in the ____________ section of a classified balance sheet. a. Long-term assets. b. Long-term investments. c. Property, Plant and Equipment. d. Current assets..
Last Answer : b. Long-term investments.
Description : The sub-classifications on the company’s classified balance sheet would include all of the following except: a. Current Assets. b. Property, Plant, and Equipment. c. Current liabilities. d. Long-term Assets.
Last Answer : d. Long-term Assets.
Description : Intangible assets are a. listed under current assets on the balance sheet. b. not listed on the balance sheet because they do not have physical substance. c. noncurrent resources. d. listed as a long-term investment on the balance sheet.
Last Answer : Intangible assets are a. listed under current assets on the balance sheet. b. not listed on the balance sheet because they do not have physical substance. c. noncurrent resources. d. listed as a long-term investment on the balance sheet.
Description : On a classified balance sheet, current assets are customarily listed a. in alphabetical order. b. with the largest dollar amounts first. c. in the order of liquidity. d. in the order of acquisition.
Last Answer : c. in the order of liquidity.
Description : Liabilities are generally classified on a balance sheet as a. small liabilities and large liabilities. b. present liabilities and future liabilities. c. tangible liabilities and intangible liabilities. d. current liabilities and long-term liabilities.
Last Answer : d. current liabilities and long-term liabilities.
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 : 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 contingent liability denominated in foreign currency at the balance sheet date is disclosed by using the ____________ rate.
Last Answer : Closing
Description : The contingent liability denominated in foreign currency at the balance sheet date is disclosed by using the __________ (a) Average Rate (b) Closing Rate (c) Non-monetary Rate (d) Monetary Rate
Description : Non-monetary items which are carried in terms of historical cost denominated in a foreign currency should be reported using the exchange rate at the date of the ___________ (a) Balance Sheet (b) Transaction (c) Settlement (d) None of the above
Last Answer : b) Transaction
Description : The exchange rate at the balance sheet date is known as ________ (a) Average Rate (b) Closing Rate (c) Non-monetary Rate (d) Monetary Rate
Last Answer : (b) Closing Rate
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 : The Amalgamation Adjustment Account appears in the books, it is shown under the heading of ......... in the balance sheet. (A) Reserve and Surplus (B) Fixed Assets (C) Investments (D) Miscellaneous Expenditure
Last Answer : (B) Equity Shareholders Account
Description : The summarized balance sheet of Autolight Limited shows the balances of previous and current year of retained earnings Rs. 25,000 and Rs. 35,000. If dividend paid during the current year amounted to Rs. 5,000 then profit earned during ... (a) Rs. 5,000 (b) Rs. 55,000 (c) Rs. 15,000 (d) Rs. 65,000
Last Answer : (c) Rs. 15,000
Description : The summarized balance sheet of Rakesh udyog Limited shows the balances of previous and current year of provision for taxation Rs. 50,000 and Rs. 65,000. If taxed paid during the current year amounted to Rs. 70,000 then amount charge ... a) Rs. 55,000 (b) Rs. 85,000 (c) Rs. 45,000 (d) Rs. 1,85,000
Last Answer : (b) Rs. 85,000