Top 50+ Solved Fund Flow Statement MCQ Questions Answer
Q. A company has to prepare its balance sheet once in..
a. six months
b. two years
c. a year
d. as and when it needs
Q. Income statement of a business shows…
a. net profit
b. net operating result of specified period
c. net loss
d. none of these
Q. The statement which shows the periodical increase or decrease of funds is called___________statement.
a. funds flow
b. cash flow
c. income
d. working capital
Q. Fund flow statement is based on the concept of…
a. business entity
b. accounting period
c. going concern
d. all of the above
Q. Which of the following is the component of current assets?
a. stock
b. prepaid expenses
c. income earned but not received
d. all of the above
Q. The term flow of funds refers to…
a. change in funds
b. change in working capital
c. both
d. none
Q. Transaction between_________ may cause the flow of funds.
a. current assets and fixed assets
b. current assets and long term liabilities, and capital
c. current liabilities and fixed assets
d. all of the above
Q. The term non-current account refers to…
a. capital
b. liabilities
c. long term liabilities
d. both (a) & (c)
Q. Share premium, share forfeited, profit and loss account, balance of profit are the examples of…
a. current assets
b. permanent liabilities
c. fixed assets
d. current liabilities
Q. The funds flow analysis is of primary importance to…
a. personnel management
b. financial management
c. quality control management
d. auditing
Q. Basically, the funds flow statement is considered a tool for…
a. cost control
b. financial analysis
c. performance analysis
d. none
Q. Who uses the funds flow statement widely?
a. financial institutions
b. financial managers
c. analysts
d. all of the above
Q. Basically, the funds flow statement shows the causes for changes of _________ during a period.
a. assets
b. liabilities
c. both
d. none