Top 150+ Solved Advanced Financial Management 2 MCQ Questions Answer
Q. CARE stands for :
a. Credit Appraisal and Research Enterprise
b. Credit Analysis and Research Enterprise
c. Credit Analysis and Research Limited
d. Credit and Rating Enterprise.
Q. Which of the following is not a part of rating methodology?
a. Business Analysis
b. Financial Analysis
c. Management Evaluation
d. Subscriber Evaluation
Q. A statement demonstrating the movement of funds into and out of the business duringthe course of accounting period is known as ___________
a. Cash Flow Statement
b. Fund Flow Statement
c. Adjusted Profit & Loss Statement
d. Statement of changes in Working Capital
Q. Analysis of funds is rightly called an Analysis of __________
a. Working Capital
b. Current Assets
c. Current Liabilities
d. None of the above
Q. Which of the following rules stands true while preparation of Schedule of changes in workingcapital? 1) An increase in current assets increases working capital. 2) An increase in current assets decreases working capital. 3) An increase in current liabilities decreases working capital. 4) An increase in current liabilities increases working capital
a. 1 and 3
b. 1 and 4
c. 2 and 4
d. 1, 2,3 and 4
Q. Among the following items, which represents the source of fund?
a. Increase in Capital
b. Borrowing / Loan
c. Profit from Business Operations
d. All of the above
Q. Fund Flow Statement is also known as:
a. Statement of Funds Flow
b. Statement of Sources and Application of Funds
c. Statement of Sources and uses of Funds
d. All of the above
Q. Which of the following are sources of funds? 1.Issue of Bonus Shares 2.Issue of Shares against the purchase of Fixed Assets 3. Conversion of Debentures into Shares 4.Conversion of Loans into Shares
a. A and C
b. A and D
c. All of the above
d. None of the above
Q. Which of the following statements is true? 1. If the amount of good will increases during current year, the difference is treated as purchase of goodwill. 2. If the amount of good will decreases during current year, It will treated as written off.
a. Only 1
b. Only 2
c. Both 1 and 2
d. None of the above
Q. Which of the following are treated as long term investments?
a. Non-current Investments
b. Trade Investments
c. Sinking Fund Investments
d. All of the above
Q. The balance of fixed assets of Breej Ltd. at the end of 2018 and 2019 were Rs 5,70,800 and Rs 6,15,300. During the year 2019 a machinery costing Rs 60,000 was sold. Determine the purchase of fixed assets.
a. Rs. 1,04,500
b. Rs. 1,40,500
c. Rs. 1,64,500
d. Rs. 44,500
Q. For Ram Industries, the balance of property has beenRs 20,000 and Rs 17,000 in 2018 and 2019 respectively. The profit on sale of property of Rs 2000 is credited to Capital Reserves Account. New property costing Rs 5000 bought in 2019. Determine sale proceeds forproperty.
a. Rs. 3,000
b. Rs. 10,000
c. Rs. 7,000
d. Rs. 15,000