Top 1000+ Solved Financial Accounting MCQ Questions Answer
Q. Cash from operating activities consists of:
a. Operating Profit
b. Decrease/Increase in Current Assets
c. Decrease/Increase in Current Assets
d. All of the Above
Q. Cash from Operating activities will decrease due to :
a. Increase in Current Assets
b. Decrease in Current Liabilities
c. Neither of the two
d. Both (a) and (b) above
Q. How will you treat Bank Overdraft in a Cash Flow Statement?
a. Cash Flow from Operating Activities ’
b. Cash Flow from Investing Activities
c. Cash Flow from Financing Activities
d. Cash Equivalent
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 (a) and (b)
d. None of the above.
Q. Buy back of equity shares should be recorded in the final cash flow statement under:
a. Investing activities
b. Financing activities
c. Operation activities
d. Any of the above
Q. Cash flow statement is based on past records, so it is______in nature.
a. historical
b. future item
c. past
d. none of these
Q. Funds 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. Interest on fixed deposit received by enterprise is shown in the Cash Flow Statement under
a. Operating Activities
b. Investing Activities
c. Financing Activities
d. All of the Above
Q. Interest on Debenture paid by enterprise is shown in the Cash Flow Statement under
a. Operating Activities
b. Investing Activities
c. Financing Activities
d. None of the Above
Q. Which item comes under financing activities in cash flow statement?
a. Redemption of Preference Share
b. Issue of Preference Share
c. Dividend Paid
d. All the above
Q. In cash flows, when a firm invests in fixed assets and short-term financial investmentsresults in
a. Increased Equity
b. Increased Liabilities
c. Decreased Cash
d. Increased Cash
Q. Payment to creditors would result in
a. Source of funds
b. Application of funds
c. Neither source or application of funds
d. Both source and application of funds
Q. Which of the following resulted in flow of funds?
a. Payment to Creditors
b. Redemption of Debentures
c. Cash received from Debtors
d. All of the above
Q. Collection from debtors would result in
a. Source of funds
b. Application of funds
c. Neither source or application of funds
d. None of these