Top 1000+ Solved Financial Accounting MCQ Questions Answer
Q. Cash Flow Statement is also known as:
a. Statement of Changes in Financial Position on Cash basis.
b. Statement accounting for variation in cash.
c. Both (i) and (ii).
d. None of the above.
Q. Which of the following is not source of cash?
a. Issue of shares
b. Purchase of Machinery
c. Sale of Asset
d. Dividend received
Q. Which of the following is not application of cash?
a. Increase in Debtors
b. Increase in Inventory
c. Increase in Bills Payable
d. Increase in Prepaid Expenses
Q. While calculating cash flow from operating activities which will be deducted:
a. Decrease in Prepaid Expenses
b. Increase in Trade Payables
c. Increase in Trade Receivables
d. Decrease in Trade Receivables
Q. An example of cash flow from investing activity is :
a. Issue of debenture
b. Repayment of long-term loan
c. Purchase of raw materials for cash
d. Sale of investment by non-financial enterprise.
Q. An Example of cash flow from financing activity is :
a. Payment of dividend
b. Receipt of dividend on investment
c. Cash received from customer
d. Purchase of fixed asset
Q. Which of the following is not an activity listed in the statement of cash flows?
a. Financing activities
b. Operating activities
c. Funding activities
d. Investing activities
Q. Which of the following is not a cash outflow?
a. Increase in creditors
b. Increase in debtors
c. Increase in stock
d. Increase in bills receivable
Q. Cash flow statement is prepared from
a. Balance sheet
b. Profit and loss A/C
c. Additional information
d. All of these
Q. Depreciation on fixed assets implies
a. an application of funds
b. a sources of fund
c. no flow of funds
d. none of these
Q. Which one of the following concepts is used as fund in the preparation of funds flow statement?
a. Current Assets
b. Working Capital
c. Cash
d. All financial resources
Q. In the course of preparing a company’s cash flow statement, the following figures are to be included in the calculation of net cash from operating activities:Depreciation charges Rs.9,80,000 Profit on sale of non-current assets Rs.40,000Increase in inventories Rs.1,30,000 Decrease in receivables Rs.1,00,000Increase in payables Rs.80,000 What will be the net effect of these items in the cash flow statement?
a. addition to operating profit Rs.8,90,000
b. subtraction from operating profit Rs.8,90,000
c. addition to operating profit Rs.9,90,000
d. addition to operating profit Rs.10,70,000
Q. If the provision for income tax for 2013 is Rs.30,000 and for 2014 is Rs.40,000; and income tax of Rs.25,000 is paid during the year 2014 in respect of year 2013, the amount of to be debited to the Profit and Loss Adjustment Account as “Provision for Income Tax” to find out “Funds from Operation” will be
a. Rs.35,000
b. Rs.45,000
c. Rs.15,000
d. Rs.25,000
Q. In the funds flow statement, item of preliminary expenses written off during the year is:
a. Added to net profit
b. Subtracted from net profit
c. An application of working capital
d. None of the above