Classical

Financial and Management Accounting - Financial and Management Accounting Objective Type Questions

6:  
The fund as used in funds flow statement means
A.

Cash

B.

Current assets

C.

Current liabilities

D.

Current assets minus current liabilities

 
 

Option: D

Explanation :


7:  
Consider the following statements with respect to the sinking-fund method of depreciation
1. Depreciation is smaller than the assets annual depreciable cost.
2. Amount of interest constantly declines due to assets reducing balance.
3. Annual net incidence on profit and loss account remains constant due to changing fixed depreciation.
4. Periodic depreciation is recorded through the asset account.
Which of the above statements are correct?
A.

2 and 3

B.

1 and 3

C.

1,2 and 4

D.

2, 3 and 4

 
 

Option: B

Explanation :


8:  
Consider the following statements:
1. Operational loss is a source of funds.
2.Decrease in working capital is a source of funds.
3. Additions to fixed assets are an application of funds.
4. Fresh introduction of c3pital is an application of funds.
Which of the above statements are applicable while preparing the funds flow statement?
A.

1 and 2

B.

1 and 3

C.

2 and 3

D.

1 , 3 and 4

 
 

Option: C

Explanation :


9:  
Financial statements are aflected by
1 Recorded facts
2. Accounting conventions
3. Personal judgements
Select the correct answer using the codes given below:
A.

1 and 2

B.

2 and 3

C.

1 and 3

D.

1,2 and 3

 
 

Option: D

Explanation :


10:  
Operating profit ratio may be calculated by
1. 100 - Operating ratio
2. (Operating profit /  Net Sales) x 100
3. ((Cost of goods sold -Cost of operation)/Sales) x 100
Select the correct answer using the codes given below:

 

A.

1 and 2

B.

2 and 3

C.

1 and 3

D.

1,2 and 3

 
 

Option: A

Explanation :




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  • These objective type questions answers can be used to gain a credit score in various undergraduate and post graduate commerce courses like B com and Mcom
  • These questions answers can be used in the preparation of ugc net exams.
  • These questions can be downloaded as Financial and management  accounting online study material pdf.
  • This section can be used for the preparation of quizzes by any commerce student.
  • This section can also be used by commerce students for improving their knowledge in Financial and management accounting
  • These mcq can also be used by any student of XI or XII standard who has opted to study commerce to increase his knowledge.