Question 1

The mirror which reflects the true financial position of the business as on a particular date&#10;A)Fund flow statement&#10;B)Cash flow statement&#10;C)Balance sheet&#10;D)Income statement

Accepted Answer

The balance sheet reflects the true financial position of a business as on a particular date, showing assets, liabilities, and equity.

Question 2

An appropriation of profit is ---------------------&#10;A)Current asset&#10;B)Non current asset&#10;C)Provision for taxation&#10;D)Non current liability

Accepted Answer

An appropriation of profit is a portion of a company's profit set aside for a specific purpose, such as taxation, and is therefore considered a provision for taxation.

Question 3

Fund flow statement are very useful in planning intermediate and ----------- financing.&#10;A)Short term&#10;B)Long term&#10;C)Medium term&#10;D)None of these

Accepted Answer

Fund flow statements are useful in planning long-term financing as they help in understanding the changes in financial position over a period, which is crucial for long-term financial planning.

Question 4

The two concept of working capital are gross working capital and --------------------------&#10;A)Net working capital&#10;B)Average working capital&#10;C)Opening working capital&#10;D)Closing working capital

Accepted Answer

Gross working capital refers to the total current assets of a company, while net working capital is the difference between a company's current assets and current liabilities, indicating the liquidity and operational efficiency of the company.

Question 5

Excess of current asset over current liability is known as -------------&#10;A)Gross working capital&#10;B)Net working capital&#10;C)Average working capital&#10;D)None of these

Accepted Answer

Net working capital is defined as the excess of current assets over current liabilities. This metric is used to assess a company's liquidity, operational efficiency, and short-term financial health.

Question 6

Flow of fund means change in -------------------&#10;A)Working capital&#10;B)Gross capital&#10;C)Net capital&#10;D)Average capital

Accepted Answer

Flow of fund refers to the change in working capital, which is the difference between current assets and current liabilities. It indicates the liquidity and operational efficiency of a business.

Question 7

An essential tool of short term financial analysis&#10;A)Fund flow statement&#10;B)Statement of uses and application of funds&#10;C)Cash flow statement&#10;D)Ratio analysis

Accepted Answer

The cash flow statement is an essential tool for short-term financial analysis as it provides insights into the liquidity and cash position of a company, helping to assess its ability to meet short-term obligations.

Question 8

A statement depicting the reasons for the change in cash position from one period to another&#10;A)Fund flow statement&#10;B)Statement of uses and application of funds&#10;C)Cash flow statement&#10;D)Ratio analysis

Accepted Answer

A cash flow statement specifically outlines the reasons for the change in cash position of a company from one period to another, detailing how cash is received and spent.

Question 9

Cash flow statement shows the causes for changes in__________&#10;A)Cash balance&#10;B)Fund&#10;C)Working capital&#10;D)None of these

Accepted Answer

The cash flow statement is specifically designed to show the changes in the cash balance of a company over a period. It categorizes cash flow into operating, investing, and financing activities to provide insights into the company's cash generation and spending.

Question 10

A statement prepared in the form of report&#10;A)Fund flow&#10;B)Cash flow&#10;C)Ratio&#10;D)Balance sheet

Accepted Answer

A cash flow statement is prepared in the form of a report to show the inflows and outflows of cash within a company over a specific period.

Question 11

Cash flow is a part of&#10;A)Fund flow&#10;B)Balance sheet&#10;C)Income statement&#10;D)Comparative statement

Accepted Answer

The answer of Cash flow is a part of&#10;A)Fund flow&#10;B)Balance...

Question 12

Cash receipts from royalties is an example of cash flow from__________&#10;A)Investing activities&#10;B)Financing activities&#10;C)Operating activities&#10;D)None of these

Accepted Answer

The answer of Cash receipts from royalties is an example...

Question 13

Cash flow from financing activities include payment of interest on borrowing and___ to share holders&#10;A)Dividend&#10;B)Interest&#10;C)Bonus&#10;D)Bonus shares

Accepted Answer

The answer of Cash flow from financing activities include payment...

Question 14

When the opening balance of cash and cash equivalent is added to the net increase , the total will be the____________&#10;A)Closing balance of cash&#10;B)Closing balance of bank&#10;C)Opening balance of bank&#10;D)Closing balance of cash and cash equivalent

Accepted Answer

The answer of When the opening balance of cash and...

Question 15

Cash payment on redemption of debenture is an example of cash flow from _________ activities&#10;A)Operating&#10;B)Investing&#10;C)Financing&#10;D)Others

Accepted Answer

The answer of Cash payment on redemption of debenture is...

Deck 8: Financial Statements and Cash Flow Analysis