Deck 5: Financial Management and Accounting

Question 1

CARE has been set up by ___________ in collaboration with some banks and financial institutions.

A)IDBI
B)IFCI
C)ICICI
D)UTI

Answer 1

IDBI

Question 2

The concept of Credit Rating was originated in which country?

A)UK
B)USA
C)Russia
D)UAE

Answer 2

USA

Question 3

Which was the first ever instruments that was rated?

A)US Rail Road Bonds
B)UK Rail Road Bonds
C)US Mines Bonds
D)None of the Above

Answer 3

US Rail Road Bonds

Question 4

Which of the following is NOT true with respect to Credit Rating

A)Credit Rating helps the market regulators in promoting stability and efficiency in securities market.
B)Credit Rating helps issuers to have a wider access to capital with better pricing
C)Credit Rating saves the investor's time and enables him to take quick decision.
D)Credit Rating is a recommendation for the issuers to buy, sell or hold the security.

Question 5

Which one of the following is the Regulator of the Credit Rating Agencies in India?

A)RBI
B)SBI
C)SIDBI
D)SEBI

Question 6

'Where Got' Where Gone' Statement is also known as

A)Balance Sheet
B)Profit and Loss Statement
C)Funds Flow Statement
D)Capital Budget

Question 7

Operating Loss is a

A)Application of Fund
B)Source of Fund
C)Loss of Assets
D)None of the Above

Question 8

Public Deposit accepted by a company represents

A)Use of Fund
B)Source of Fund
C)Application of Fund
D)Equilibrium

Question 9

Redemption of Debenture by a company represents

A)Application of Fund
B)Source of Fund
C)Loss of the Company
D)None of the Above

Question 10

Only Current Assets and Current Liabilities are shown in the statement showing

A)Changes in Assets
B)Changes in Liabiliteis
C)Changes in Working Capital
D)Changes in Fixed Capital

Question 11

Decrease in Working Capital Denotes

A)Application of Fund
B)Source of Fund
C)Disposition of Fund
D)Operating Loss

Question 12

Which one of the following is not an Application of Fund?

A)Purchase of Fixed Assets
B)Repayment of Loans
C)Operating Loss
D)Operating Profit

Question 13

When liability decreases it is a ________

A)Source of Funds
B)Profit
C)Application of Funds
D)Loss

Question 14

Loss on sale of Fixed Assets / Investment will be shown on the credit side of adjusted profit and loss account.

Question 15

The balances of Provision for Taxation were Rs. 20000 and Rs. 15000 in 2019 and 2020 respectively, if in the current year taxed paid were Rs. 10000 then what will be the current year provision for tax made from profit?

A)Rs. 7000
B)Rs. 5000
C)Rs. 15000
D)Rs. 10000

Question 16

The proposed dividend for the Current Year would appear on the debit side of which account?

A)Profit and Loss Account
B)Balance Sheet
C)Adjusted Profit and Loss Account
D)Adjusted Balance Sheet

Question 17

If the shares are issued at a premium during the year then the amount of premium received will appear as a _______

A)Source of Fund
B)Application of Fund
C)Profit
D)Loss

Question 18

Last year's proposed dividend has been paid during the current year and hence will be shown as________

A)A source of funds
B)An application of funds
C)Increase in liabilities
D)None of the above

Question 19

Any change in Current Liabilities will effect inverse change in the working capital.

Question 20

From the following details find out the funds from operations: Net Profit after Tax Rs. 48,000 Depreciation Rs. 30,000 Loss on Sale of Outdated Machinary : Rs. 4000

A)Rs. 82,000
B)Rs. 22,000
C)Rs. 74,000
D)Rs. 14,000

Question 21

From the following details find out the fund from operations PAT Rs. 2,500 Accumulated Depreciation Rs. 2,900 Retained Earning Rs. 4,200 Goodwill Written off Rs. 300 Profit on Sale of Fixed Assets Rs. 200

A)Rs. 9,900
B)Rs. 9,600
C)Rs. 9,700
D)Rs. 5,100

Question 22

Funds Flow Statement indicates the necessity of arranging external funds in advance if projected outflow is more than inflow.

Question 23

Any change in the Current assets is positively correlated to the change in working capital