Question 1

Cash flow statement is based on past records, so it is______in nature.

Accepted Answer

A) historical 
B) future item 
C) past 
D) none of these 
A) historical 
B) future item 
C) past 
D) none of these

Question 2

Cash flow statement is based upon

Accepted Answer

A) Accrual basis of accounting 
B) Cash basis of accounting 
C) Both a and b 
D) None of the above 
A) Accrual basis of accounting 
B) Cash basis of accounting 
C) Both a and b 
D) None of the above

Question 3

Capital investments for the branches are made by

Accepted Answer

A) State office 
B) Central office 
C) Head office 
D) None of these. 
A) State office 
B) Central office 
C) Head office 
D) None of these.

Question 4

Which of the following is source of cash?

Accepted Answer

A) Cash deposited into Bank 
B) Cash withdrawn from Bank 
C) Sale of Goods costing ?10,000 for ?8,000 
D) Sale of marketable securities for cash. 
A) Cash deposited into Bank 
B) Cash withdrawn from Bank 
C) Sale of Goods costing ?10,000 for ?8,000 
D) Sale of marketable securities for cash.

Question 5

Which of the following is not source of cash?

Accepted Answer

A) Issue of shares 
B) Purchase of Machinery 
C) Sale of Asset 
D) Dividend received 
A) Issue of shares 
B) Purchase of Machinery 
C) Sale of Asset 
D) Dividend received

Question 6

Payment to creditors would result in

Accepted Answer

A) Source of funds 
B) Application of funds 
C) Neither source or application of funds 
D) Both source and application of funds 
A) Source of funds 
B) Application of funds 
C) Neither source or application of funds 
D) Both source and application of funds

Question 7

Dependent branch makes :

Accepted Answer

A) Cash sales only 
B) Credit sales only 
C) Cash & Credit sales 
D) Instalment sales 
A) Cash sales only 
B) Credit sales only 
C) Cash & Credit sales 
D) Instalment sales

Question 8

HO sends goods to branch at 20% profit on invoice price, therefore the percentage of profit on cost comes to -

Accepted Answer

A) 15% 
B) 25% 
C) 33.33% 
D) 20% 
A) 15% 
B) 25% 
C) 33.33% 
D) 20%

Question 9

Cash from Operating activities will decrease due to :

Accepted Answer

A) Increase in Current Assets 
B) Decrease in Current Liabilities 
C) Neither of the two 
D) Both (a) and (b) above 
A) Increase in Current Assets 
B) Decrease in Current Liabilities 
C) Neither of the two 
D) Both (a) and (b) above

Question 10

__________Account is prepared with a view to ascertain the gross profit of branch.

Accepted Answer

A) Branch account 
B) Branch adjustment a/c 
C) Branch expense a/c 
D) None of these. 
A) Branch account 
B) Branch adjustment a/c 
C) Branch expense a/c 
D) None of these.

Question 11

The Head office account in the books of branch is debited with

Accepted Answer

A) Cash sent to the head office and goods returned to the head office 
B) Cash and goods received from the head office 
C) Head office expenses allocated to branch by the head office 
D) None of the above 
A) Cash sent to the head office and goods returned to the head office 
B) Cash and goods received from the head office 
C) Head office expenses allocated to branch by the head office 
D) None of the above

Question 12

Profit generated from the branch is transferred to

Accepted Answer

A) Branch profit and loss account 
B) General profit and loss account 
C) Branch expenses account 
D) None of these 
A) Branch profit and loss account 
B) General profit and loss account 
C) Branch expenses account 
D) None of these

Question 13

Branch which donot maintain its own set of books is__________.

Accepted Answer

A) Dependent branch 
B) Independent branch 
C) Foreign branch 
D) Local branch 
A) Dependent branch 
B) Independent branch 
C) Foreign branch 
D) Local branch

Question 14

Cash from operations is equal to

Accepted Answer

A) Net profit plus decrease in current assets 
B) Net profit plus decrease in current liabilities 
C) Net profit plus bonus paid in the form of fully paid bonus shares 
D) None of the above 
A) Net profit plus decrease in current assets 
B) Net profit plus decrease in current liabilities 
C) Net profit plus bonus paid in the form of fully paid bonus shares 
D) None of the above

Question 15

Redemption of preference share capital is shown in

Accepted Answer

A) Sources of funds 
B) Application of funds 
C) Funds from operation 
D) All of the above 
A) Sources of funds 
B) Application of funds 
C) Funds from operation 
D) All of the above

Question 16

Which of the following items will affect the flow of funds?

Accepted Answer

A) A transaction affecting both non - current accounts 
B) A transaction affecting both current accounts 
C) A transaction affecting current and non- current accounts 
D) None of the above 
A) A transaction affecting both non - current accounts 
B) A transaction affecting both current accounts 
C) A transaction affecting current and non- current accounts 
D) None of the above

Question 17

Increase in the amount of prepaid expenses results in

Accepted Answer

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

Question 18

Collection from debtors would result in

Accepted Answer

A) Source of funds 
B) Application of funds 
C) Neither source or application of funds 
D) None of these 
A) Source of funds 
B) Application of funds 
C) Neither source or application of funds 
D) None of these

Question 19

Branches may be classified into

Accepted Answer

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

Question 20

For depreciation on fixed assets, whose accounts are maintained by the head office, the head office

Accepted Answer

A) Debit Fixed assets account and credit Branch account 
B) Debit Branch account and credit Fixed assets account 
C) Debit Branch account only 
D) Credit fixed assets. 
A) Debit Fixed assets account and credit Branch account 
B) Debit Branch account and credit Fixed assets account 
C) Debit Branch account only 
D) Credit fixed assets.

Exam 50: Accounting Arrangements and Operations for Branches

Cash flow statement is based on past records, so it is______in nature.

Cash flow statement is based upon

Capital investments for the branches are made by

Which of the following is source of cash?

Which of the following is not source of cash?

Payment to creditors would result in

Dependent branch makes :

HO sends goods to branch at 20% profit on invoice price, therefore the percentage of profit on cost comes to -

Cash from Operating activities will decrease due to :

__________Account is prepared with a view to ascertain the gross profit of branch.

The Head office account in the books of branch is debited with

Profit generated from the branch is transferred to

Branch which donot maintain its own set of books is__________.

Cash from operations is equal to

Redemption of preference share capital is shown in

Which of the following items will affect the flow of funds?

Increase in the amount of prepaid expenses results in

Collection from debtors would result in

Branches may be classified into

For depreciation on fixed assets, whose accounts are maintained by the head office, the head office

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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