Question 1

The funds flow analysis is of primary importance to…

Accepted Answer

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

Question 2

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

Accepted Answer

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

Question 3

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

Accepted Answer

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

Question 4

Which of following are original statements?

Accepted Answer

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

Question 5

Working capital requirements depends on the credit policy of …

Accepted Answer

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

Question 6

The term non-current account refers to…

Accepted Answer

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

Question 7

Funds flow statement is complementary to…

Accepted Answer

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

Question 8

Which of the following is an application of funds?

Accepted Answer

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

Question 9

Funds flow statement is a substitute for…

Accepted Answer

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

Question 10

Who uses the funds flow statement widely?

Accepted Answer

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

Question 11

Which of the following is the source of funds?

Accepted Answer

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

Question 12

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

Accepted Answer

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

Question 13

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

Accepted Answer

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

Question 14

What is meant by funds from operation?

Accepted Answer

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

Question 15

Which of the following statement is dynamic in nature?

Accepted Answer

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

Exam 7: Funds Flow Statement and Non-Current Accounts

The funds flow analysis is of primary importance to…