Cash flow from financing activities include payment of interest on borrowing and___ to share holders a) Dividend b) Interest c) Bonus d) Bonus shares

Cash flow from financing activities include payment of interest on borrowing and___ to share  holders
a) Dividend
b) Interest
c) Bonus
d) Bonus shares
by

1 Answer

Answer :

a) Dividend
by

Related questions

Cash payment on redemption of debenture is an example of cash flow from _________ activities a) Operating b) Investing c) Financing d) Others

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

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

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

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

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

Share Premium received by a Company may be used for– (A) Payment of dividend (B) Payment of remuneration to management (C) Issue of Bonus shares (D) None of these

Description : Share Premium received by a Company may be used for– (A) Payment of dividend (B) Payment of remuneration to management (C) Issue of Bonus shares (D) None of these

Last Answer : Answer: Issue of Bonus shares

In the case of financial enterprises, the cash flow resulting from interest and dividend received and interest paid should be classified as cash flow from A. Operating activities B. Financing activities C. Investing activities D. None of the above

Description : In the case of financial enterprises, the cash flow resulting from interest and dividend received and interest paid should be classified as cash flow from A. Operating activities B. Financing activities C. Investing activities D. None of the above

Last Answer : A. Operating activities

Part of company‟s earning or profit which is paid out to share holders is known as _______ A. Premium B. Dividend C. Bonus D. Sum Assured E. Return

Description : Part of company‟s earning or profit which is paid out to share holders is known as _______ A. Premium B. Dividend C. Bonus D. Sum Assured E. Return

Last Answer : B. Dividend Explanation: A dividend is a payment made by a corporation to its shareholders, usually as a distribution of profits. When a corporation earns a profit or surplus, it can re-invest ... business (called retained earnings), and pay a fraction of the profit as a dividend to shareholders.

Dividend paid are classified under-------------------activities a) Financing b) Investing c) Operating d) Other

Description : Dividend paid are classified under-------------------activities a) Financing b) Investing c) Operating d) Other

Last Answer : a) Financing

Proposed dividend is classified as----------- a) Investing activity b) Financing activity c) Operating activity d) Cash equivalent

Description : Proposed dividend is classified as----------- a) Investing activity b) Financing activity c) Operating activity d) Cash equivalent

Last Answer : c) Operating activity

Cash receipts from royalties is an example of cash flow from__________ a) Investing activities b) Financing activities c) Operating activities d) None of these

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

For dividend yield ratio -------------- price of the equity shares is taken into consideration a) Market b) Cash c) Cost d) None of the above

Description : For dividend yield ratio -------------- price of the equity shares is taken into consideration a) Market b) Cash c) Cost d) None of the above

Last Answer : a) Market

Buy back of shares is shown under----------------------- a) operating activities b) investing activities c) financing activities d) none of these

Description : Buy back of shares is shown under----------------------- a) operating activities b) investing activities c) financing activities d) none of these

Last Answer : c) financing activities

Cash payment suppliers of goods and services are shown under-------------. a) Operating b) Financing c) Investing

Description : Cash payment suppliers of goods and services are shown under-------------. a) Operating b) Financing c) Investing

Last Answer : a) Operating

Income tax paid should be shown separately as the cash flows from----------- activities. a) Financing b) Investing c) Operating d) Others

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

Bonus Shares are issued to– (A) Equity Shareholders (B) Preference Shareholders (C) Debenture Holders (D) Secured Creditors

Description : Bonus Shares are issued to– (A) Equity Shareholders (B) Preference Shareholders (C) Debenture Holders (D) Secured Creditors

Last Answer : Answer: Equity Shareholders

If the intrinsic values of shares exchanged are not equal, the difference is paid in ........... (A) Cash (B) Debenture (C) Pref. share (D)Assets

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

Premium received on issue of shares cannot be utilised for ---------. A. for the issue of bonus shares B. for writing of preliminary expenses C. for providing premium payable on redemption D. for distribution of dividend

Description : Premium received on issue of shares cannot be utilised for ---------. A. for the issue of bonus shares B. for writing of preliminary expenses C. for providing premium payable on redemption D. for distribution of dividend

Last Answer : D. for distribution of dividend

Holders of preference shares will have a right to vote if the dividend remains in arrears for a period not lessthan A. 2 year B. 3 years C. 6 years D. none of these

Description : Holders of preference shares will have a right to vote if the dividend remains in arrears for a period not lessthan A. 2 year B. 3 years C. 6 years D. none of these

Last Answer : 2

Bonus shares can be issued by a company A. Out of the Reserves created by revaluation of fixed assets B. Out of share premium not collected in cash C. Without any provision for it in the Articles of Association of the company D. Out of free reserves built out of genuine profit

Description : Bonus shares can be issued by a company A. Out of the Reserves created by revaluation of fixed assets B. Out of share premium not collected in cash C. Without any provision for it in the Articles of Association of the company D. Out of free reserves built out of genuine profit

Last Answer : D. Out of free reserves built out of genuine profit

If a company is given credit terms of 2/10, n/30, it should a. hold off paying the bill until the end of the credit period, while investing the money at 10% annual interest during this time. b. pay within the discount period and recognize a savings. c. pay within the credit period but don't take the trouble to invest the cash while waiting to pay the bill. d. recognize that the supplier is desperate for cash and withhold payment until the end of the credit period while negotiating a lower sales price.

Description : If a company is given credit terms of 2/10, n/30, it should a. hold off paying the bill until the end of the credit period, while investing the money at 10% annual interest during ... desperate for cash and withhold payment until the end of the credit period while negotiating a lower sales price.

Last Answer : b. pay within the discount period and recognize a savings.

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

Description : 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

Last Answer : d) None of the these

The entry to record the receipt of payment within the discount period on a sale of $750 with terms of 2/10, n/30 will include a credit to a. Sales Discounts for $15. b. Cash for $735. c. Accounts Receivable for $750. d. Sales for $750.

Description : The entry to record the receipt of payment within the discount period on a sale of $750 with terms of 2/10, n/30 will include a credit to a. Sales Discounts for $15. b. Cash for $735. c. Accounts Receivable for $750. d. Sales for $750.

Last Answer : c. Accounts Receivable for $750.

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 the Cash flow C. The flow of funds must arise due to external and not internal transactions of the business D. The capitalisation of reserves by the issue of bonus shares also involves flow of funds

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

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

The ratio which shows the relationship b/w share holder’s fund and total assets a) Debit equity ratio b) Proprietary ratio c) Solvency ratio d) Fixed asset

Description : The ratio which shows the relationship b/w share holder’s fund and total assets a) Debit equity ratio b) Proprietary ratio c) Solvency ratio d) Fixed asset

Last Answer : b) Proprietary ratio

Debt service ratio is also known as -------------- a) Interest coverage ratio b) Dividend payout ratio c) Solvency ratio d) Debtors turn over ratio

Description : Debt service ratio is also known as -------------- a) Interest coverage ratio b) Dividend payout ratio c) Solvency ratio d) Debtors turn over ratio

Last Answer : a) Interest coverage ratio

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

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

Preference dividend in arears on the date of winding up is a) Treated as Secured creditor b) Treated as Preferential creditor c) Treated as Over – riding preferential creditor d) Added to Preference Share Capital

Description : Preference dividend in arears on the date of winding up is a) Treated as Secured creditor b) Treated as Preferential creditor c) Treated as Over – riding preferential creditor d) Added to Preference Share Capital

Last Answer : d) Added to Preference Share Capital

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

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

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

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

20,000 equity shares of Rs.10 each issued at 10% premium , cash is Rs------------------- a) Rs.2,00,000 b) Rs.2,10,000 c) Rs.2,15,000 d) Rs.2,20,000

Description : 20,000 equity shares of Rs.10 each issued at 10% premium , cash is Rs------------------- a) Rs.2,00,000 b) Rs.2,10,000 c) Rs.2,15,000 d) Rs.2,20,000

Last Answer : d) Rs.2,20,000

Fund flow statement are very useful in planning intermediate and ----------- financing. a) Short term b) Long term c) Medium term d) None of these

Description : Fund flow statement are very useful in planning intermediate and ----------- financing. a) Short term b) Long term c) Medium term d) None of these

Last Answer : a) Short term

If the market price of the shares to be given for Purchase Consideration at the time of absorption, ............ of the share is to be determined (A) Fair Value (B) Face Value (C) Intrinsic Value (D) Yield Value

Description : If the market price of the shares to be given for Purchase Consideration at the time of absorption, ............ of the share is to be determined (A) Fair Value (B) Face Value (C) Intrinsic Value (D) Yield Value

Last Answer : (C) Intrinsic Value

As per Accounting Standard-3, Cash Flow is classified into A. Operating activities and investing activities B. Investing activities and financing activities C. Operating activities and financing activities D. Operating activities, financing activities and investing activities

Description : As per Accounting Standard-3, Cash Flow is classified into A. Operating activities and investing activities B. Investing activities and financing activities C. Operating activities and financing activities D. Operating activities, financing activities and investing activities

Last Answer : D. Operating activities, financing activities and investing activities

Interest payments, principal payments, and cash dividends are the typical budgeting cash-flow analysis because they are A. included in; financing B. excluded from; financing C. included in; operating D. excluded from; operating

Description : Interest payments, principal payments, and cash dividends are the typical budgeting cash-flow analysis because they are A. included in; financing B. excluded from; financing C. included in; operating D. excluded from; operating

Last Answer : C. included in; operating

What is Capital Redemption Reserve Account available for ? (A) Redemption of redeemable preference shares (B) Redemption of redeemable debentures (C) Reorganization of share capital (D) Issue of fully paid bonus shares

Description : What is Capital Redemption Reserve Account available for ? (A) Redemption of redeemable preference shares (B) Redemption of redeemable debentures (C) Reorganization of share capital (D) Issue of fully paid bonus shares

Last Answer : Answer: Issue of fully paid bonus shares

The return on investment (ROI) may be calculated as A. Net profit before interest, tax and dividend / Capital employed B. Net profit after interest, tax and dividend / Shareholder's fund C. ( Net profit - preference dividend )/ No. of equity shares D. Return on Investment / Net profit ratio

Description : The return on investment (ROI) may be calculated as A. Net profit before interest, tax and dividend / Capital employed B. Net profit after interest, tax and dividend / Shareholder's fund C. ( Net profit - preference dividend )/ No. of equity shares D. Return on Investment / Net profit ratio

Last Answer : A. Net profit before interest, tax and dividend / Capital employed

If the company is insolvent , interest on debentures is payable upto the date of actual payment.

Description : If the company is insolvent , interest on debentures is payable upto the date of actual payment.

Last Answer : FALSE

As per AS-14 purchase consideration is payable to _________________. (A) Shareholders (B) Creditors (C) Debenture holders (D) Bank

Description : As per AS-14 purchase consideration is payable to _________________. (A) Shareholders (B) Creditors (C) Debenture holders (D) Bank

Last Answer : Shareholders

Kavya bought 300, Rs. 50 shares paying a dividend of 8%. If she sold them when the price rose to Rs. 90 and invested the proceeds in 10%, Rs. 50 share

Description : Kavya bought 300, Rs. 50 shares paying a dividend of 8%. If she sold them when the price rose to Rs. 90 and invested the proceeds in 10%, Rs. 50 share

Last Answer : Kavya bought 300, Rs. 50 shares paying a dividend of 8%. If she sold them when the price rose to ... . 30, then find the change in her annual income.

Which is a better investment, (A) Rs. 60 shares at Rs. 75 paying a dividend of 10% or (B) Rs. 100 share at Rs. 120 paying a dividend of 12% ?

Description : Which is a better investment, (A) Rs. 60 shares at Rs. 75 paying a dividend of 10% or (B) Rs. 100 share at Rs. 120 paying a dividend of 12% ?

Last Answer : Which is a better investment, (A) Rs. 60 shares at Rs. 75 paying a dividend of 10% or (B) Rs. 100 share at Rs. 120 paying a dividend of 12% ?

Rakesh invested Rs.27,000 in Rs.27 shares of a company which pays a dividend of `10%`. Find the market value of each share if he derives an annual inc

Description : Rakesh invested Rs.27,000 in Rs.27 shares of a company which pays a dividend of `10%`. Find the market value of each share if he derives an annual inc

Last Answer : Rakesh invested Rs.27,000 in Rs.27 shares of a company which pays a dividend of `10%`. Find ... investment, also find the number of shares he bought.

Share premium account can be used for– (A) Paying tax liability (B) Meeting the cost of issue of shares or debentures (C) Paying Dividend on shares (D) Meeting the loss on sale of old asset

Description : Share premium account can be used for– (A) Paying tax liability (B) Meeting the cost of issue of shares or debentures (C) Paying Dividend on shares (D) Meeting the loss on sale of old asset

Last Answer : Answer: Meeting the cost of issue of shares or debentures

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

Description : 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 ... . The Net Asset Value Per share is A Rs.11 B Rs.10.70 C Rs.15 D Rs.20

Last Answer : Rs.10.70

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.

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.

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

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 the year will be: (a) Rs. 5,000 (b) Rs. 55,000 (c) Rs. 15,000 (d) Rs. 65,000

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

Proposed dividend is a-------- a) Current liability b) Current asset c) Noncurrent liability d) Expense

Description : Proposed dividend is a-------- a) Current liability b) Current asset c) Noncurrent liability d) Expense

Last Answer : a) Current liability

Dividend yield is an example for------ratio a) Solvency b) Liquidity c) Market strength d) Net worth

Description : Dividend yield is an example for------ratio a) Solvency b) Liquidity c) Market strength d) Net worth

Last Answer : c) Market strength

MM Model of Dividend irrelevance uses arbitrage between : A. Dividend and Bonus B. Dividend and Capital Issue C. Profit and Investment D. None of the

Description : MM Model of Dividend irrelevance uses arbitrage between : A. Dividend and Bonus B. Dividend and Capital Issue C. Profit and Investment D. None of the

Last Answer : B. Dividend and Capital Issue

Two categories of expenses for merchandising companies are a. cost of goods sold and financing expenses. b. operating expenses and financing expenses. c. cost of goods sold and operating expenses. d. sales and cost of goods sold.

Description : Two categories of expenses for merchandising companies are a. cost of goods sold and financing expenses. b. operating expenses and financing expenses. c. cost of goods sold and operating expenses. d. sales and cost of goods sold.

Last Answer : c. cost of goods sold and operating expenses.