Deck 6: Fund Flow and Cash Flow Statements

Question 1

Increase in working capital is-----------------------

A)Source of fund
B)Application of fund
C)Funds from operation
D)Loss from operation

Answer 1

Application of fund

Question 2

Salaries Rs.20000,depreciation for the period is Rs.30000 other operating expenses are Rs.9000, net loss for the period is Rs.5000 fund generated from operation is------------------

A)Rs.25000
B)Rs.15000
C)Rs.35000
D)Rs.14000

Answer 2

Rs.25000

Question 3

Stock at the end results in-----------------------

A)Application of fund
B)Source of fund
C)Inflow of fund
D)None of these

Answer 3

Source of fund

Question 4

Depreciation is a source of fund-------------------

A)Yes
B)No
C)Both yes or no
D)None of these

Question 5

Stock in the beginning results in-----------

A)Application of funds
B)Source of fund
C)Inflow of fund
D)None of these

Question 6

Which of the following does not affect the fund flow statement

A)Issue of shares
B)Borrowing
C)Repayment of loan
D)Payment to creditors

Question 7

Which of the following does not affect working capital---------

A)Bank overdraf
B)Debenture
C)Cash
D)Bank

Question 8

Proposed dividend is a--------

A)Current liability
B)Current asset
C)Noncurrent liability
D)Expense

Question 9

Cash flow statement is prepared by taking the ------------- balance of cash

A)Opening balance
B)Closing balance
C)Monthly balance
D)Others

Question 10

Decrease in a creditor is a---------------- of cash

A)Inflow
B)No flow of cash
C)Outflow
D)None of these

Question 11

Goodwill written off is-----------to the net profit made during the year for calculating the cash from operation

A)Added back
B)Deducted
C)Decreased
D)None of these

Question 12

Provision for tax is shown as a part of-----------activity

A)financing
B)investing
C)operating
D)others

Question 13

Purchase of fixed asset is classified as------activity

A)financing
B)investing
C)operating
D)others

Question 14

Purchase of building by issue of debenture is a---------item and it is ignored in cash flow statement

A)cash
B)non-cash
C)non-operating
D)current

Question 15

Cash flow statement is based on past records, so it is---------in nature

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

Question 16

Cash equivalent are usually of short term but highly -----------------investments

A)liquid
B)Fixed
C)Changed
D)None of these

Question 17

Cash flow statements (based on AS-3) should be prepared and presented under------------------ method.

A)Direct
B)Indirect
C)Permanence
D)None of these

Question 18

Income tax paid should be shown separately as the cash flows from----------- activities.

A)Financing
B)Investing
C)Operating
D)Others

Question 19

Buy back of shares is shown under-----------------------

A)operating activities
B)investing activities
C)financing activities
D)none of these

Question 20

Increase in prepaid expenses--------------------cash

A)Increases
B)Added
C)Decreases
D)None of these

Question 21

Dividend paid are classified under-------------------activities

A)Financing
B)Investing
C)Operating
D)Others

Question 22

Cash payment suppliers of goods and services are shown under-------------.

A)Operating
B)Financing
C)Investing
D)None of the above

Question 23

20,000 equity shares of Rs.10 each issued at 10% premium , cash is Rs-------------------

A)Rs.2,00,000
B)Rs.2,10,000
C)Rs.2,15,000
D)Rs.2,20,000

Question 24

Preliminary expenses written off is--------

A)Cash transaction
B)Non-cash transaction
C)Credit transaction
D)None of the above

Question 25

Investment costing Rs.50,000 at the loss of Rs.3,000 cash outflow in investing activity is --------

A)Rs.53,000
B)Rs.50,000
C)Rs.47,000
D)Rs.48,000