Classical

Financial and Management Accounting - Financial and Management Accounting MCQ

56:  
Which of the following statements is not correct?
A.
For the purpose of Funds Flow Statement, the term 'fund ' generally refers to net working capital
B.
Funds flow is a wider concept than the Cash flow
C.
The flow of funds must arise due to external and not internal transactions of the business
D.
The capitalisation of reserves by the issue of bonus shares also involves flow of funds
 
 

Option: D

Explanation :


57:  
Match List I with List II and select correct answer using the codes given below:
     List I                                                                       List II
a. ABC Analysis                                                 I. Capital Structure
b. Fund Flow  Analysis                                    II. Inventory Control
c. ROI                                                                 Ill. Working Capital Management
d. M M Theory                                                   IV. Overall Profitability
A.

 a    b    c    d

 II     III    IV   I

B.

 a    b    c    d

  I    II    IV    III

C.

 a    b    c    d

 IV   III    I     II

D.

 a    b    c    d

 I     III    II   IV

 
 

Option: A

Explanation :


58:  
Match List I with List II and select the correct answer using the codes given below the lists
    List I                                                                                                                          List II
a. Balance of DebentureRedemption Fund account                                    I. Realisation account 
b. Balance of Sinking Fund account for the  replacement of an asset     II. Funds flow statement
c. On dissolution of a firm, the provisions made for doubtful debts         Ill. General reserve
    appearing in Balance Sheet
d. Financial consequences of business operations                                   IV. Asset account
A.

 a   b    c    d

 I    II    III    IV

B.

 a   b    c    d

III   IV    I    II

C.

 a   b    c    d

 I    II    IV    III

D.

 a   b    c    d

 III  IV    II    I

 
 

Option: B

Explanation :


59:  

Acid-test ratio should normally be

A.

2:1

B.

1:1

C.

3:1

D.

4:1

 
 

Option: B

Explanation :


60:  
Which one of the following is an example of sources of funds?
A.

Decrease in share capital

B.

Increase in long-term liabilities

C.

Decrease in long-term liabilities

D.

Increase in fixed assets

 
 

Option: B

Explanation :




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