Deck 7: Funds Flow Statement and Non-Current Accounts

Question 1

The term non-current account refers to…

A)capital
B)liabilities
C)long term liabilities
D)both (a) & (c)

Answer 1

both (a) & (c)

Question 2

Share premium, share forfeited, profit and loss account, balance of profit are the examples of…

A)current assets
B)permanent liabilities
C)fixed assets
D)current liabilities

Answer 2

permanent liabilities

Question 3

The funds flow analysis is of primary importance to…

A)personnel management
B)financial management
C)quality control management
D)auditing

Answer 3

financial management

Question 4

Basically, the funds flow statement is considered a tool for…

A)cost control
B)financial analysis
C)performance analysis
D)none of the above

Question 5

Who uses the funds flow statement widely?

A)financial institutions
B)financial managers
C)analysts
D)all of the above

Question 6

Basically, the funds flow statement shows the causes for changes of _________ during a period.

A)assets
B)liabilities
C)both a & b
D)none of the above

Question 7

The sources of side of funds flow statement shows the______ sources of funds of a firm.

A)internal
B)external
C)both a & b
D)none of the above

Question 8

Funds flow statement is a substitute for…

A)income statement
B)balance sheet
C)both a & b
D)none of the above

Question 9

Which of following are original statements?

A)funds flow statement
B)financial statement
C)cash flow statement
D)working capital statement

Question 10

Which of the following statement is dynamic in nature?

A)balance sheet
B)funds flow
C)both a & b
D)income statement

Question 11

Funds flow statement is complementary to…

A)balance sheet
B)income statement
C)both a & b
D)none of the above

Question 12

Which of the following is the source of funds?

A)issue of shares
B)raising long term loans
C)sale of fixed assets
D)all of these

Question 13

Which of the following is an application of funds?

A)funds lost in operation
B)income from investment
C)funds from operations
D)all of these

Question 14

What is meant by funds from operation?

A)operating profit
B)net profit
C)gross profit
D)all of the above

Question 15

Working capital requirements depends on the credit policy of …

A)the company
B)the suppliers
C)both a & b
D)none of the above