Question 1

Transaction between branches are called__________.

Accepted Answer

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

Question 2

_________ represents goods sent by head office to the branch or by the branch to the head office but not received by other

Accepted Answer

A) Goods in transit 
B) Cash in transit 
C) Barter transit 
D) None of these. 
A) Goods in transit 
B) Cash in transit 
C) Barter transit 
D) None of these.

Question 3

The price of goods sent by head office to branch at a price higher than cost price is called

Accepted Answer

A) Actual price 
B) Unloaded price 
C) Invoice price 
D) None of these 
A) Actual price 
B) Unloaded price 
C) Invoice price 
D) None of these

Question 4

An example of cash flow from investing activity is :

Accepted Answer

A) Issue of debenture 
B) Repayment of long-term loan 
C) Purchase of raw materials for cash 
D) Sale of investment by non-financial enterprise. 
A) Issue of debenture 
B) Repayment of long-term loan 
C) Purchase of raw materials for cash 
D) Sale of investment by non-financial enterprise.

Question 5

Debtors system of keeping branch accounts are generally

Accepted Answer

A) Branch fairly small in size 
B) Branch big in size 
C) Branch with multiple transactions 
D) All the above 
A) Branch fairly small in size 
B) Branch big in size 
C) Branch with multiple transactions 
D) All the above

Question 6

The main reasons of keeping branch accounts

Accepted Answer

A) to find out the profit or loss of each branch for the accounting period 
B) to ascertain the financial position of each branch at the end of the accounting year 
C) to evaluate the progress and performance of each branch 
D) All of these 
A) to find out the profit or loss of each branch for the accounting period 
B) to ascertain the financial position of each branch at the end of the accounting year 
C) to evaluate the progress and performance of each branch 
D) All of these

Question 7

An independent branch

Accepted Answer

A) Receives the goods from the head office 
B) Purchases the goods from outside parties 
C) Receives goods from both head office and outside parties 
D) None of the above 
A) Receives the goods from the head office 
B) Purchases the goods from outside parties 
C) Receives goods from both head office and outside parties 
D) None of the above

Question 8

Depreciation is _________ from/to net profit in calculating funds from operation.

Accepted Answer

A) added 
B) deducted 
C) divided 
D) all of the above 
A) added 
B) deducted 
C) divided 
D) all of the above

Question 9

Cash from operating activities consists of:

Accepted Answer

A) Operating Profit 
B) Decrease/Increase in Current Assets 
C) Decrease/Increase in Current Assets. 
D) All of the Above 
A) Operating Profit 
B) Decrease/Increase in Current Assets 
C) Decrease/Increase in Current Assets. 
D) All of the Above

Question 10

Which of the following is not application of cash?

Accepted Answer

A) Increase in Debtors 
B) Increase in Inventory 
C) Increase in Bills Payable 
D) Increase in Prepaid Expenses 
A) Increase in Debtors 
B) Increase in Inventory 
C) Increase in Bills Payable 
D) Increase in Prepaid Expenses

Question 11

Under debtors system depreciation on fixed asset is________ _______

Accepted Answer

A) credited to branch A/c 
B) debited to branch A/c 
C) not shown in branch A/c 
D) shown in debtors A/c 
A) credited to branch A/c 
B) debited to branch A/c 
C) not shown in branch A/c 
D) shown in debtors A/c

Question 12

Which of the following is not a cash outflow?

Accepted Answer

A) Increase in creditors 
B) Increase in debtors 
C) Increase in stock 
D) Increase in bills receivable 
A) Increase in creditors 
B) Increase in debtors 
C) Increase in stock 
D) Increase in bills receivable

Question 13

Cash flow statement is prepared from

Accepted Answer

A) Balance sheet 
B) Profit and loss A/C 
C) Additional information 
D) All of these 
A) Balance sheet 
B) Profit and loss A/C 
C) Additional information 
D) All of these

Question 14

Which of the following resulted in flow of funds?

Accepted Answer

A) Payment to Creditors 
B) Redemption of Debentures 
C) Cash received from Debtors 
D) All of the above 
A) Payment to Creditors 
B) Redemption of Debentures 
C) Cash received from Debtors 
D) All of the above

Question 15

A statement prepared in the form of report.

Accepted Answer

A) Fund flow 
B) Cash flow 
C) Ratio 
D) Balance sheet 
A) Fund flow 
B) Cash flow 
C) Ratio 
D) Balance sheet

Question 16

Cash payment to suppliers for goods and services are classified as cash flow from ____________ activities.

Accepted Answer

A) operating 
B) financing 
C) investing 
D) all of the above. 
A) operating 
B) financing 
C) investing 
D) all of the above.

Question 17

It is a system of finding out the profit made by a head office at a branch by preparing an account called_______.

Accepted Answer

A) Profit &loss a/c 
B) Trading a/c 
C) Branch a/c 
D) None of these. 
A) Profit &loss a/c 
B) Trading a/c 
C) Branch a/c 
D) None of these.

Question 18

Which of the following are applications of funds?

Accepted Answer

A) Payment of dividend on share capital 
B) Payment of tax 
C) Increase in working capital 
D) All of the above 
A) Payment of dividend on share capital 
B) Payment of tax 
C) Increase in working capital 
D) All of the above

Question 19

Branches are divided into

Accepted Answer

A) Dependent 
B) Independent 
C) Foreign 
D) All the above 
A) Dependent 
B) Independent 
C) Foreign 
D) All the above

Question 20

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

Exam 50: Accounting Arrangements and Operations for Branches

Transaction between branches are called__________.

_________ represents goods sent by head office to the branch or by the branch to the head office but not received by other

The price of goods sent by head office to branch at a price higher than cost price is called

An example of cash flow from investing activity is :

Debtors system of keeping branch accounts are generally

The main reasons of keeping branch accounts

An independent branch

Depreciation is _________ from/to net profit in calculating funds from operation.

Cash from operating activities consists of:

Which of the following is not application of cash?

Under debtors system depreciation on fixed asset is________ _______

Which of the following is not a cash outflow?

Cash flow statement is prepared from

Which of the following resulted in flow of funds?

A statement prepared in the form of report.

Cash payment to suppliers for goods and services are classified as cash flow from ____________ activities.

It is a system of finding out the profit made by a head office at a branch by preparing an account called_______.

Which of the following are applications of funds?

Branches are divided into

Branches not keeping full system of accounting is called

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

Filters

Under debtors system depreciation on fixed asset is__ _