Top 550+ Solved Management Accounting MCQ Questions Answer
Q. Depreciation is a source of fund-------------------
a. Yes
b. No
c. Both yes or no
d. None of these
Q. Stock in the beginning results in-----------
a. Application of funds
b. Source of fund
c. Inflow of fund
d. None of these
Q. Which of the following does not affect the fund flow statement
a. Issue of shares
b. Borrowing
c. Repayment of loan
d. Payment to creditors
Q. Which of the following does not affect working capital---------
a. Bank overdraft
b. Debenture
c. Cash
d. Bank
Q. Proposed dividend is a--------
a. Current liability
b. Current asset
c. Noncurrent liability
d. Expense
Q. Cash flow statement is prepared by taking the ------------- balance of cash
a. Opening balance
b. Closing balance
c. Monthly balance
d. Others
Q. Decrease in a creditor is a---------------- of cash
a. Inflow
b. No flow of cash
c. Outflow
d. None of these
Q. Goodwill written off is-----------to the net profit made during the year for calculating the cash from operation
a. Added back
b. Deducted
c. Decreased
d. None of these
Q. Provision for tax is shown as a part of-----------activity
a. financing
b. investing
c. operating
d. others
Q. Purchase of fixed asset is classified as------activity
a. financing
b. investing
c. operating
d. others
Q. Purchase of building by issue of debenture is a---------item and it is ignored in cash flow statement
a. cash
b. non-cash
c. non-operating
d. current
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. Cash equivalent are usually of short term but highly -----------------investments
a. liquid
b. Fixed
c. Changed
d. None of these
Q. Cash flow statements (based on AS-3) should be prepared and presented under------------------method.
a. Direct
b. Indirect
c. Permanence
d. None of these
Q. Income tax paid should be shown separately as the cash flows from----------- activities.
a. Financing
b. Investing
c. Operating
d. Others