Fund Flow Statement – Corporate and Management Accounting MCQBy CACSMockTest / November 25, 2022 November 25, 2022 0 Fund Flow Statement – Corporate and Management Accounting MCQ 1 / 23 Depreciation provided during the year: Furniture ₹ 15,000, Building ₹ 14,000.The statement of P & L for the year:Opening balance ₹ 38,500Add Profit for the year ₹ 40,300,Less: Goodwill wrote off ₹ 15,000,Closing balance ₹ 63,800.What will be the number of funds from the operation? (A) ₹ 69,300 (B) ₹ 54,300 (C) ₹ 78,800 (D) ₹ 25,300 2 / 23 Which of the following statement is correct? (A) A decrease in current liability during the year results in an increase in working capital. (B) Only non-cash expenses are added to net profit to find out funds from operations. (C) Conversion of debentures into equity shares appears in the fund flow statement. (D) Collection of debtors is a source of funds. 3 / 23 June 2018: Which of the following does not come under the scope of management accounting? (A) Formation, installation, and operation of accounting cost accounting, tax accounting, and information system. (B) The compilation and preservation of vital data for management planning. (C) Providing and installing an effective system of feedback. (D) Publishing the financial statements and get them audited by a statutory auditor. 4 / 23 Assertion (A):Management accounting can be defined as processing and presenting accounting, cost accounting, and other economic data. Reason (R):It is an analysis of all the transactions, financial and physical, to enable effective comparison to be made between the forecasts and actual performance. (A) Both A and R are true and R is the correct explanation of A (B) Both A and R are true but R is not the correct explanation of A (C) A is true but R is false (D) A is false but R is true 5 / 23 The total increase in current ₹ 20,000 assetsThe total increase in current ₹ 80,000 liabilitiesTotal decrease in current ₹ 1,30,000 assetsThe total decrease in current ₹ 30,000 liabilitiesThe net change in working capital is: While analyzing the opening and closing balance sheet of a company the following are observed: (A) No change in working capital (B) Net increase in working capital ₹ 1,60,000 (C) Net decrease in working capital ₹ 1,60,000 (D) None of the above 6 / 23 In the fund flow statement, the flow of fund will occur when a transaction is happened between: (A) Current Assets & Current Liabilities (B) Non-current Assets & Non-cur-rent Liabilities (C) Current Assets & Non-current Assets (D) All of the above 7 / 23 In Management Accounting, analysis of accounting data are carried out with the help of: (A) Tools and Techniques (B) Statutory Forms (C) Auditors (D) Legal provisions 8 / 23 Management accounting works on the output of: (A) Financial accounting (B) Cost Accounting (C) Statistics (D) All of the above 9 / 23 Management accounting and cost accounting are____to each other. (A) Complementary (B) Supplementary (C) Opposite (D) Independent 10 / 23 June 2017: Net Profit + Non-Cash expenses = (A) Gross Profit (B) Profit after tax (C) Fund from the operation (D) Distributable profit 11 / 23 Assertion (A):In management accounting firm decisions on pricing policy can be taken. Reason (R):As the marginal cost per unit is constant from period to period within a short span of time. (A) A is true, but R is false (B) A is true, but R is true (C) Both A & R are true and R is the correct explanation of A (D) Both A & R are true but R is not the correct explanation of A 12 / 23 Management Accounting aims at: (A) Presentation of accounting information (B) Assist in long-term planning (C) Assist in day to day activities (D) All of the above 13 / 23 : Which of the following is not applied in Management Accounting? (A) Comparative Statement (B) Managerial reporting (C) Double-entry system (D) Operation research 14 / 23 A company reported a current year profit of ₹ 12,00,000which includes the following:Profit on sale of equipment:Share issue expenses:Dividend income:Tax:Profit on revaluation of fixed assets :The amount of funds from operation will be_______ (A) 11 ,90,000 (B) 8,20,000 (C) 10,70,000 (D) 10,50,000 15 / 23 June 2016: The balance of the investment account is ₹ 20,000 on 31 st March 2014 and ₹ 30,000 on 31st March 2015. As per additional information, dividend received ₹ 3,000 includes ₹ 1,000 from pre-acquisition profit which is credited to an investment account. The amount of investment purchased/sold during the year 2014-2015 is (A) ₹ 13,000 purchased (B) ₹ 11,000 purchased (C) ₹ 9,000 purchased (D) ₹ 9,000 sold 16 / 23 June 2016: Which one of the following is a non-current item (A) Securities premium (B) Outstanding wages (C) Trade payables (D) Bank balance 17 / 23 A company reported current year profit as ₹ 70,000 after the following adjustments:Loss on sale of equipment: ₹ 9,000Premium on debenture redemption: ₹ 1,500Tax provision: ₹ 22,000Dividend income: ₹ 4,000Profit on revaluation of fixed asset: ₹ 2,500The amount of fund from operations will be (A) ₹ 96,000 (B) ₹ 93,000 (C) ₹ 78,000 (D) ₹ 61,000 18 / 23 June 2016: If provision for taxation is treated as a current liability, then payment of tax is (A) An application of funds (B) A source of funds (C) No flow of funds (D) None of the above 19 / 23 Assertion (A):Funds are not related to working capital. Reason (R):The flow of funds takes place whenever there is a change in the funds. (A) Both A and R are true and R is the correct explanation of A (B) Both A and R are true, but R is not the correct explanation of A (C) A is true, but R is false (D) A is false, but R is true 20 / 23 June 2015: Which of the following statement is not true – (A) Fund flow statement is also known as the statement of sources and application of funds (B) Fund is equal to current assets minus current liabilities (C) There is an inverse relationship between current assets and working capital (D) Fund flow statement is prepared on an accrual basis 21 / 23 June 2015: Which of the following does not result in an inflow of funds in case of fund flow statement (A) Issue of equity share capital (B) Premium received on issue of shares/ debentures (C) Sale of investments (D) Cash received from debtors 22 / 23 Which of the following results in a decrease in working capital (A) Goods sold on credit (B) Decrease in current liabilities (C) Decrease in current assets (D) Increase in current assets 23 / 23 Particulars ₹ Provision of income-tax 33,000 Depreciation 6,500 Preliminary expenses written-off 1,500 Bad debts 500 Loss on sale of furniture 2,500 Discount allowed to customers 1,900 Discount received from trade creditors 1400After considering the above information, find out the funds from operation Net profit of A Ltd. amounted to 40,000. (A) 84,000 (B) 83,500 (C) 85,400 (D) 85,900 Your score is LinkedIn Facebook Twitter VKontakte
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