On This Page

This set of Analysis of Financial Statements Multiple Choice Questions & Answers (MCQs) focuses on Fund Flow Statement

Q1 | The term non-current account refers to…
  • capital
  • liabilities
  • long term liabilities
  • both (a) & (c)
Q2 | Share premium, share forfeited, profit and loss account, balance of profit are the examples of…
  • current assets
  • permanent liabilities
  • fixed assets
  • current liabilities
Q3 | The funds flow analysis is of primary importance to…
  • personnel management
  • financial management
  • quality control management
  • auditing
Q4 | Basically, the funds flow statement is considered a tool for…
  • cost control
  • financial analysis
  • performance analysis
  • none
Q5 | Who uses the funds flow statement widely?
  • financial institutions
  • financial managers
  • analysts
  • all of the above
Q6 | Basically, the funds flow statement shows the causes for changes of _________ during a period.
  • assets
  • liabilities
  • both
  • none
Q7 | The sources of side of funds flow statement shows the______ sources of funds of a firm.
  • internal
  • external
  • both
  • none
Q8 | Funds flow statement is a substitute for…
  • income statement
  • balance sheet
  • both
  • none
Q9 | Which of following are original statements?
  • funds flow statement
  • financial statement
  • cash flow statement
  • working capital statement
Q10 | Which of the following statement is dynamic in nature?
  • balance sheet
  • funds flow
  • both
  • income statement
Q11 | Funds flow statement is complementary to…
  • balance sheet
  • income statement
  • both
  • none
Q12 | Which of the following is the source of funds?
  • issue of shares
  • raising long term loans
  • sale of fixed assets
  • all of these
Q13 | Which of the following is an application of funds?
  • funds lost in operation
  • income from investment
  • funds from operations
  • all of these
Q14 | What is meant by funds from operation?
  • operating profit
  • net profit
  • gross profit
  • all of the above
Q15 | Working capital requirements depends on the credit policy of …
  • the company
  • the suppliers
  • both
  • none