Question 1

Branches may be classified into ________.

Accepted Answer

A) Inland branches and foreign branches 
B) Account branches and proper branch 
C) Main branch and subordinate branch 
D) None of these 
A) Inland branches and foreign branches 
B) Account branches and proper branch 
C) Main branch and subordinate branch 
D) None of these A

Question 2

In case of inter-branch transactions, each branch

Accepted Answer

A) Opens separate accounts for other branches 
B) Passes no entry 
C) May treat such transactions as the transactions with the Head office 
D) All the above 
A) Opens separate accounts for other branches 
B) Passes no entry 
C) May treat such transactions as the transactions with the Head office 
D) All the above C

Question 3

Fund flow refers to changes in

Accepted Answer

A) application 
B) sources 
C) both a. and b. 
D) working capital 
A) application 
B) sources 
C) both a. and b. 
D) working capital D

Question 4

The adjustment entry for goods in transit is passed in the books of

Accepted Answer

A) Either the branch or the head office 
B) Branch as well as Head office 
C) Only Branch account. 
D) Only Branch account 
A) Either the branch or the head office 
B) Branch as well as Head office 
C) Only Branch account. 
D) Only Branch account

Question 5

While calculating cash flow from operating activities which will be deducted:

Accepted Answer

A) Decrease in Prepaid Expenses 
B) Increase in Trade Payables 
C) Increase in Trade Receivables 
D) Decrease in Trade Receivables 
A) Decrease in Prepaid Expenses 
B) Increase in Trade Payables 
C) Increase in Trade Receivables 
D) Decrease in Trade Receivables

Question 6

Under stock and debtors system, which of the following accounts is prepared with a view to ascertain Gross Profit of the Branch?

Accepted Answer

A) Branch Adjustment Account 
B) Branch Profit and Loss Account 
C) Branch Expenses Account 
D) Goods Sent to Branch Account 
A) Branch Adjustment Account 
B) Branch Profit and Loss Account 
C) Branch Expenses Account 
D) Goods Sent to Branch Account

Question 7

Under Debtors' system, credit sales are

Accepted Answer

A) Debited to Branch Account 
B) Credited to Branch Account 
C) Debited to Branch Debtors Account 
D) None of the Above 
A) Debited to Branch Account 
B) Credited to Branch Account 
C) Debited to Branch Debtors Account 
D) None of the Above

Question 8

Which of the following is not an activity listed in the statement of cash flows?

Accepted Answer

A) Financing activities 
B) Operating activities 
C) Funding activities 
D) Investing activities 
A) Financing activities 
B) Operating activities 
C) Funding activities 
D) Investing activities

Question 9

ncrease in debtors causes ______________ in working capital.

Accepted Answer

A) Increase 
B) Decrease 
C) No change 
D) None of the above 
A) Increase 
B) Decrease 
C) No change 
D) None of the above

Question 10

Which item comes under financing activities in cash flow statement?

Accepted Answer

A) Redemption of Preference Share 
B) Issue of Preference Share 
C) Dividend Paid 
D) All the above 
A) Redemption of Preference Share 
B) Issue of Preference Share 
C) Dividend Paid 
D) All the above

Question 11

Cash flow statement is based on _________ basis of accounting.

Accepted Answer

A) cash 
B) accrual 
C) direct 
D) indirect 
A) cash 
B) accrual 
C) direct 
D) indirect

Question 12

Branches not keeping full system of accounting is called________.

Accepted Answer

A) Independent branches 
B) Partial branches 
C) Dependent branches 
D) None of these 
A) Independent branches 
B) Partial branches 
C) Dependent branches 
D) None of these

Question 13

An Example of cash flow from financing activity is :

Accepted Answer

A) Payment of dividend 
B) Receipt of dividend on investment 
C) Cash received from customer 
D) Purchase of fixed asset 
A) Payment of dividend 
B) Receipt of dividend on investment 
C) Cash received from customer 
D) Purchase of fixed asset

Question 14

Transaction between branches are called

Accepted Answer

A) Branch transaction 
B) Inter branch transaction 
C) Internal transaction 
D) None of these 
A) Branch transaction 
B) Inter branch transaction 
C) Internal transaction 
D) None of these

Question 15

Increase in the amount of creditors results in

Accepted Answer

A) Decrease in cash 
B) Increase in cash 
C) No change in cash 
D) None of the above 
A) Decrease in cash 
B) Increase in cash 
C) No change in cash 
D) None of the above

Question 16

Purchase of new machinery is shown in

Accepted Answer

A) Cash flow from Operating Activities 
B) Cash flow from Financing Activities 
C) Cash flow from Investing Activities 
D) All of the above 
A) Cash flow from Operating Activities 
B) Cash flow from Financing Activities 
C) Cash flow from Investing Activities 
D) All of the above

Question 17

Funds Flow Statement is also known as

Accepted Answer

A) Statement of Funds Flow 
B) Statement of Sources and Application of Funds 
C) Statement of Sources and Uses of Funds 
D) All of the above 
A) Statement of Funds Flow 
B) Statement of Sources and Application of Funds 
C) Statement of Sources and Uses of Funds 
D) All of the above

Question 18

If the provision for income tax for 2013 is Rs.30,000 and for 2014 is Rs.40,000. and income tax of Rs.25,000 is paid during the year 2014 in respect of year 2013, the amount of to be debited to the Profit and Loss Adjustment Account as "Provision for Income Tax" to find out "Funds from Operation" will be

Accepted Answer

A) Rs.35,000 
B) Rs.45,000 
C) Rs.15,000 
D) Rs.25,000 
A) Rs.35,000 
B) Rs.45,000 
C) Rs.15,000 
D) Rs.25,000

Question 19

Depreciation on fixed assets implies

Accepted Answer

A) an application of funds 
B) a sources of fund 
C) no flow of funds 
D) none of these 
A) an application of funds 
B) a sources of fund 
C) no flow of funds 
D) none of these

Question 20

Which of the following transactions do not result in flow of funds?

Accepted Answer

A) Raising short term loans 
B) Sale of fixed assets 
C) Repayment of long term loans 
D) Redemption of Debentures 
A) Raising short term loans 
B) Sale of fixed assets 
C) Repayment of long term loans 
D) Redemption of Debentures

Exam 50: Accounting Arrangements and Operations for Branches

Branches may be classified into ________.

In case of inter-branch transactions, each branch

Fund flow refers to changes in

The adjustment entry for goods in transit is passed in the books of

While calculating cash flow from operating activities which will be deducted:

Under stock and debtors system, which of the following accounts is prepared with a view to ascertain Gross Profit of the Branch?

Under Debtors' system, credit sales are

Which of the following is not an activity listed in the statement of cash flows?

ncrease in debtors causes ______________ in working capital.

Which item comes under financing activities in cash flow statement?

Cash flow statement is based on _________ basis of accounting.

Branches not keeping full system of accounting is called________.

An Example of cash flow from financing activity is :

Transaction between branches are called

Increase in the amount of creditors results in

Purchase of new machinery is shown in

Funds Flow Statement is also known as

Depreciation on fixed assets implies

Which of the following transactions do not result in flow of funds?

Exploring Features and Advantages of Computerized Accounting Systems

Exploring Computerized Accounting Systems and Software

Non-Profit Organizations and Financial Statements

Not-For-Profit Organizations and Financial Accounts

Goodwill and Intangible Assets

Valuation and Calculation of Goodwill

Understanding the Concepts of Lessor, Lessee, and Minimum Rent

Royalty Accounting and Partnership Firms

Accounting

Accounting and Corporate Finance

Accounting and Finance

Depreciation, Share Capital, and Forfeiture of Shares

Financial Statements and Accounting Principles

Insurance Provision and Accounting Standards

Formation and Capital Structure of Public Companies

Share Forfeiture, Debentures, and Sinking Fund

Financial Accounting and Banking

Insurance and General Insurance Companies: Understanding Terms and Concepts

Single Entry System and Company Ownership

Share Capital and Shareholders in a Company

Debentures, Bonds, and Shares

Accounting Concepts and Principles

Accounting Concepts and Practices

Financial Statements and Accounting for Nonprofit Organizations

Hire Purchase, Sale of Goods, and Bookkeeping

Accounting and Bookkeeping

Allocation of Selling Expenses Among Departments Based on Sales

Accounting Concepts and Systems

Accounting and Financial Transactions

Ac Types, Balances, and Entries

Errors, Adjustments, and Expenditures in Accounting

Capitalization, Errors, Cash Book, and Types of Accounts

Revenue Recognition and Expenditure Classification

Depreciation and Asset Provision

Accounting Adjustments and Financial Statement Treatment

Balance Sheet and Profit Loss Account

Accounting and Financial Management

Bills of Exchange, Consignment, and Partnership

Accounting Standards and Joint Ventures

Accounting and Financial Management : Part A

Accounting and Financial Management : Part B

Accounting: Interest, Bill, Partnership Agreement,insurance, Contingent Liability, and Business Resources

Fundamentals of Accounting: Objectives, Concepts, and Principles

Depreciation and Reserves: Understanding the Accounting Concepts

Underwriting and Creditor Questions in Company Affairs

Amalgamation, Llp, and Single Entry System

Single Entry System and Profit Calculation

Accounting for Receipts, Payments, Income, and Expenditure in Consignment and Joint Venture Businesses

Accounting for Co-Venturers, Consignments, and Branches

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