Deck 8: Financial Statements and Cash Flow Analysis

Question 1

The mirror which reflects the true financial position of the business as on a particular date

A)Fund flow statement
B)Cash flow statement
C)Balance sheet
D)Income statement

Answer 1

Balance sheet

Question 2

An appropriation of profit is ---------------------

A)Current asset
B)Non current asset
C)Provision for taxation
D)Non current liability

Answer 2

Provision for taxation

Question 3

Fund flow statement are very useful in planning intermediate and ----------- financing.

A)Short term
B)Long term
C)Medium term
D)None of these

Answer 3

Long term

Question 4

The two concept of working capital are gross working capital and --------------------------

A)Net working capital
B)Average working capital
C)Opening working capital
D)Closing working capital

Question 5

Excess of current asset over current liability is known as -------------

A)Gross working capital
B)Net working capital
C)Average working capital
D)None of these

Question 6

Flow of fund means change in -------------------

A)Working capital
B)Gross capital
C)Net capital
D)Average capital

Question 7

An essential tool of short term financial analysis

A)Fund flow statement
B)Statement of uses and application of funds
C)Cash flow statement
D)Ratio analysis

Question 8

A statement depicting the reasons for the change in cash position from one period to another

A)Fund flow statement
B)Statement of uses and application of funds
C)Cash flow statement
D)Ratio analysis

Question 9

Cash flow statement shows the causes for changes in__________

A)Cash balance
B)Fund
C)Working capital
D)None of these

Question 10

A statement prepared in the form of report

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

Question 11

Cash flow is a part of

A)Fund flow
B)Balance sheet
C)Income statement
D)Comparative statement

Question 12

Cash receipts from royalties is an example of cash flow from__________

A)Investing activities
B)Financing activities
C)Operating activities
D)None of these

Question 13

Cash flow from financing activities include payment of interest on borrowing and___ to share holders

A)Dividend
B)Interest
C)Bonus
D)Bonus shares

Question 14

When the opening balance of cash and cash equivalent is added to the net increase , the total will be the____________

A)Closing balance of cash
B)Closing balance of bank
C)Opening balance of bank
D)Closing balance of cash and cash equivalent

Question 15

Cash payment on redemption of debenture is an example of cash flow from _________ activities

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