1. Any gain on sale of non-current asset should be ----- from the net profit for determining funds
from operation
Correct : A. Deducted
2. Asset sold on credit is---- of funds
Correct : C. Source
3. Furniture sold for cash -----funds flow
Correct : A. Increases
4. Goodwill is a ---------------------transaction
Correct : B. Noncurrent
5. When one account is current and another a non-current It results in--------------------
Correct : A. Flow of fund
6. To arrive at funds from operation ,non-cash expenses must be added to----------
Correct : A. Net profit
7. Fund flow statement is accompanied by a schedule of-----------------------------
Correct : A. Changes in working capital
8. Goods purchased on credit-----------inflow of funds
Correct : A. Does not result
9. ----------account is prepared to know funds from operation
Correct : D. Profit & Loss adjustment account
10. Increases in current liabilities --------------working capital
Correct : B. Decreases
11. Increase in current assets-------------working capital
Correct : A. Increases
12. Decrease in current liabilities --------------------working capital
Correct : A. Increases
13. Net increase in working capital results in----------------of funds
Correct : D. application
14. Net decrease in working capital results in --------------------of funds
Correct : B. Application
15. -------------------means transfer of economic value of firm from one asset or equity to another.
Correct : A. Flow of funds
16. Funds from operations are --------------of funds
Correct : C. Sources
17. In the fund flow statement, depreciation is----------------
Correct : B. Added to net profit
18. Which of the following is non-current asset
Correct : A. Goodwill
19. Which of the following will affect the flow of fund
Correct : A. a transaction affecting current and non-current accounts
20. Which of the following is an application of fund
Correct : C. Purchase of funds
21. 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-------------------------
Correct : A. No change in working capital
22. Gross profit are Rs.50,000 and expenses not result in the application of funds are Rs.10000 funds
from operation will be
Correct : A. Rs.60000
23. Which of the following is a non-current liability
Correct : A. Mortgage loan
24. Current liabilities are equals to-------------------------------
Correct : C. Current assets-working capital
25. Inflow of fund does not take place due to----------------
Correct : B. Increase in capital
26. Increase in working capital is-----------------------
Correct : B. Application of fund
27. Salaries Rs.20000,depreciation for the period is Rs.30000 other operating expenses are Rs.9000,
net loss for the period is Rs.5000 fund generated from operation is------------------
Correct : A. Rs.25000
28. Stock at the end results in-----------------------
Correct : B. Source of fund
29. Depreciation is a source of fund-------------------
Correct : A. Yes
30. Stock in the beginning results in-----------
Correct : A. Application of funds
31. Which of the following does not affect the fund flow statement
Correct : D. Payment to creditors
32. Which of the following does not affect working capital---------
Correct : B. Debenture
33. Proposed dividend is a--------
Correct : A. Current liability
34. Cash flow statement is prepared by taking the ------------- balance of cash
Correct : A. Opening balance
35. Decrease in a creditor is a---------------- of cash
Correct : C. Outflow
36. Goodwill written off is-----------to the net profit made during the year for calculating the cash
from operation
Correct : A. Added back
37. Provision for tax is shown as a part of-----------activity
Correct : C. operating
38. Purchase of fixed asset is classified as------activity
Correct : B. investing
39. Purchase of building by issue of debenture is a---------item and it is ignored in cash flow
statement
Correct : B. non-cash
40. Cash flow statement is based on past records, so it is---------in nature
Correct : A. historical
41. Cash equivalent are usually of short term but highly -----------------investments
Correct : A. liquid
42. Cash flow statements (based on AS-3) should be prepared and presented under------------------
method.
Correct : B. Indirect
43. Income tax paid should be shown separately as the cash flows from----------- activities.
Correct : C. Operating
44. Buy back of shares is shown under-----------------------
Correct : C. financing activities
45. Increase in prepaid expenses--------------------cash
Correct : C. Decreases
46. Dividend paid are classified under-------------------activities
Correct : A. Financing
47. Cash payment suppliers of goods and services are shown under-------------.
Correct : A. Operating
48. 20,000 equity shares of Rs.10 each issued at 10% premium , cash is Rs-------------------
Correct : D. Rs.2,20,000
49. Preliminary expenses written off is--------
Correct : B. Non-cash transaction
50. Investment costing Rs.50,000 at the loss of Rs.3,000 cash outflow in investing activity is --------
Correct : C. Rs.47,000
51. Cash from operations is equal to------------------
Correct : D. net profit plus non-cash expenses plus decrease in current assets.
52. Increase in the amount of bills receivable results in--------------
Correct : A. decrease in cash
53. Increase in the amount of bills payable results in----------
Correct : B. Increase in cash
54. Which of the following is not an inflow of cash
Correct : D. Acquisition of assets
55. Dividend paid under AS- 3 is----------
Correct : C. Cash flow from investing activity
56. Cash flows include
Correct : C. Cash receipts and payments
57. Cash flow statement is based on----------
Correct : A. Cash basis of accounting
58. Proposed dividend is classified as-----------
Correct : C. Operating activity
59. Profit on sale of machinery comes under------------
Correct : C. Operating activity
60. Sale of patent is classified under---------
Correct : A. Investing activity
61. Rent received by a company (whose main business is real estate) is classified as
Correct : C. Operating activity
62. AS-3 is related to
Correct : A. Cash flow statement
63. A system of control where persons are made responsible for control of cost
Correct : C. Responsibility accounting
64. A system where accounting is established with responsibility
Correct : A. Responsibility accounting
65. A segment of activity for which cost is accumulated
Correct : B. Cost centre
66. A segment of activity for which both revenue and cost are accumulated
Correct : B. Project centre
67. A centre at which proper utilization of asset used in the centre
Correct : A. Investment centre
68. A segment of activity for which revenues are accumulated
Correct : C. revenue centre
69. A segment of activity or area of operation for which cost is collected is known as -----------------
Correct : A. Cost centre
70. A segment of activity or area of operation for which revenues are accumulated is known as ------
Correct : C. Revenue centre
71. A control system where accountability is established with responsibility is known as --------------
Correct : B. Responsibility accounting
72. --------- is a system where persons are made responsible for control of cost
Correct : C. Responsibility accounting
73. ------------- centre is one for which both revenue and cost are accumulated
Correct : D. Profit centre
74. A firm’s investment in current asset is known as ----------------
Correct : B. Gross working capital
75. A transaction that doesn’t make any change in working capital position is ---------
Correct : C. Non fund transaction
76. The mirror which reflects the true financial position of the business as on a particular date
Correct : C. Balance sheet
77. An appropriation of profit is ---------------------
Correct : C. Provision for taxation
78. Fund flow statement are very useful in planning intermediate and ----------- financing.
Correct : B. Long term
79. The two concept of working capital are gross working capital and --------------------------
Correct : A. Net working capital
80. Excess of current asset over current liability is known as -------------
Correct : B. Net working capital
81. Flow of fund means change in -------------------
Correct : A. Working capital
82. An essential tool of short term financial analysis
Correct : C. Cash flow statement
83. A statement depicting the reasons for the change in cash position from one period to another
Correct : C. Cash flow statement
84. Cash flow statement shows the causes for changes in__________
Correct : A. Cash balance
85. A statement prepared in the form of report
Correct : B. Cash flow
86. Cash flow is a part of
Correct : A. Fund flow
87. Cash receipts from royalties is an example of cash flow from__________
Correct : C. Operating activities
88. Cash flow from financing activities include payment of interest on borrowing and___ to share
holders
Correct : A. Dividend
89. When the opening balance of cash and cash equivalent is added to the net increase , the total
will be the____________
Correct : B. Closing balance of bank
90. Cash payment on redemption of debenture is an example of cash flow from _________ activities