Question 1

The term non-current account refers to&#8230;&#10;A)capital&#10;B)liabilities&#10;C)long term liabilities&#10;D)both (a) & (c)

Accepted Answer

Non-current accounts refer to items on the balance sheet that are not expected to be converted into cash within a year, which includes both capital (long-term investments) and long-term liabilities.

Question 2

Share premium, share forfeited, profit and loss account, balance of profit are the examples of&#8230;&#10;A)current assets&#10;B)permanent liabilities&#10;C)fixed assets&#10;D)current liabilities

Accepted Answer

Share premium, share forfeited, profit and loss account, and balance of profit are examples of permanent liabilities or equity accounts, not assets or liabilities. These items represent the financial structure of a company's equity or internal financing sources, rather than its assets or external financing obligations.

Question 3

The funds flow analysis is of primary importance to&#8230;&#10;A)personnel management&#10;B)financial management&#10;C)quality control management&#10;D)auditing

Accepted Answer

Funds flow analysis is crucial for financial management as it helps in understanding the inflow and outflow of funds, enabling better financial planning, analysis, and decision-making.

Question 4

Basically, the funds flow statement is considered a tool for&#8230;&#10;A)cost control&#10;B)financial analysis&#10;C)performance analysis&#10;D)none of the above

Accepted Answer

The funds flow statement is primarily used for financial analysis, as it helps in understanding the sources and uses of funds over a period.

Question 5

Who uses the funds flow statement widely?&#10;A)financial institutions&#10;B)financial managers&#10;C)analysts&#10;D)all of the above

Accepted Answer

The funds flow statement is used by financial institutions, financial managers, and analysts to assess the financial health and cash flow of a company.

Question 6

Basically, the funds flow statement shows the causes for changes of _________ during a period.&#10;A)assets&#10;B)liabilities&#10;C)both a & b&#10;D)none of the above

Accepted Answer

The funds flow statement is designed to analyze the changes in the financial condition of a business between two points in time. It does so by examining changes in the company's assets and liabilities, thus showing where the funds came from (sources) and where they went (uses).

Question 7

The sources of side of funds flow statement shows the______ sources of funds of a firm.&#10;A)internal&#10;B)external&#10;C)both a & b&#10;D)none of the above

Accepted Answer

The sources of funds in a funds flow statement include both internal sources (like profits from operations) and external sources (like loans or equity financing), hence both A and B are correct.

Question 8

Funds flow statement is a substitute for&#8230;&#10;A)income statement&#10;B)balance sheet&#10;C)both a & b&#10;D)none of the above

Accepted Answer

The funds flow statement is not a substitute for the income statement or balance sheet; rather, it complements them by providing additional information about the flow of funds within an organization.

Question 9

Which of following are original statements?&#10;A)funds flow statement&#10;B)financial statement&#10;C)cash flow statement&#10;D)working capital statement

Accepted Answer

Financial statement is an original statement, which includes the balance sheet, income statement, and cash flow statement, providing a comprehensive overview of a company's financial performance and position.

Question 10

Which of the following statement is dynamic in nature?&#10;A)balance sheet&#10;B)funds flow&#10;C)both a & b&#10;D)income statement

Accepted Answer

The answer of Which of the following statement is dynamic...

Question 11

Funds flow statement is complementary to&#8230;&#10;A)balance sheet&#10;B)income statement&#10;C)both a & b&#10;D)none of the above

Accepted Answer

The answer of Funds flow statement is complementary to&#8230;&#10;A)balance sheet&#10;B)income...

Question 12

Which of the following is the source of funds?&#10;A)issue of shares&#10;B)raising long term loans&#10;C)sale of fixed assets&#10;D)all of these

Accepted Answer

The answer of Which of the following is the source...

Question 13

Which of the following is an application of funds?&#10;A)funds lost in operation&#10;B)income from investment&#10;C)funds from operations&#10;D)all of these

Accepted Answer

The answer of Which of the following is an application...

Question 14

What is meant by funds from operation?&#10;A)operating profit&#10;B)net profit&#10;C)gross profit&#10;D)all of the above

Accepted Answer

The answer of What is meant by funds from operation?&#10;A)operating...

Question 15

Working capital requirements depends on the credit policy of &#8230;&#10;A)the company&#10;B)the suppliers&#10;C)both a & b&#10;D)none of the above

Accepted Answer

The answer of Working capital requirements depends on the credit...

Deck 7: Funds Flow Statement and Non-Current Accounts