Management Accounting Set 13

Bachelor of Business Administration (BBA),

Bachelor of Banking and Insurance (BBI),

Bachelor of Commerce (B Com)

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This set of Management Accounting Multiple Choice Questions & Answers (MCQs) focuses on Management Accounting Set 13

Q1 | Fund flow refers to change in-----
  • Working capital
  • Fixed capital
  • Current capital
  • Increase in working capital
Answer: Working capital
Q2 | Depreciation is sometimes treated as -------of funds
  • Outflow
  • Use
  • Source
  • No change
Answer: Source
Q3 | Salary outstanding is----- of funds
  • Source
  • Inflow
  • Application
  • No change
Answer: Application
Q4 | Any gain on sale of non-current asset should be ----- from the net profit for determining funds from operation
  • Deducted
  • Added
  • Increased
  • None of these
Answer: Deducted
Q5 | Asset sold on credit is---- of funds
  • Application
  • Uses
  • Source
  • Decrease
Answer: Source
Q6 | Furniture sold for cash -----funds flow
  • Increases
  • Decreases
  • Deducted
  • None of these
Answer: Increases
Q7 | Goodwill is a ---------------------transaction
  • Current
  • Noncurrent
  • Fixed
  • None of these
Answer: Noncurrent
Q8 | When one account is current and another a non-current It results in--------------------
  • Flow of fund
  • Increase of fund
  • Decrease of fund
  • None of these
Answer: Flow of fund
Q9 | To arrive at funds from operation ,non-cash expenses must be added to----------
  • Net profit
  • Gross profit
  • Operating profit
  • None of these
Answer: Net profit
Q10 | Fund flow statement is accompanied by a schedule of-----------------------------
  • Changes in working capital
  • Flow of funds
  • Increase in fund
  • Decrease in fund
Answer: Changes in working capital
Q11 | Goods purchased on credit-----------inflow of funds
  • Does not result
  • Does result
  • Change
  • None of these
Answer: Does not result
Q12 | #NAME?
  • Profit & Loss appropriation account
  • Profit and loss account
  • Trading account
  • Profit & Loss adjustment account
Answer: Profit & Loss adjustment account
Q13 | Increases in current liabilities --------------working capital
  • Increase
  • Decreases
  • Added
  • None of these
Answer: Decreases
Q14 | Increase in current assets-------------working capital
  • Increases
  • Decreases
  • Deducts
  • Reduces
Answer: Increases
Q15 | Decrease in current liabilities --------------------working capital
  • Increases
  • Decrease
  • Deducts
  • Reduces
Answer: Increases
Q16 | Net increase in working capital results in----------------of funds
  • source
  • Inflow
  • no change
  • application
Answer: application
Q17 | Net decrease in working capital results in --------------------of funds
  • Source
  • Application
  • No change
  • None of these
Answer: Application
Q18 | #NAME?
  • Flow of funds
  • Uses of fund
  • Inflow of funds
  • Application of funds
Answer: Flow of funds
Q19 | Funds from operations are --------------of funds
  • Application
  • Uses
  • Sources
  • No change
Answer: Sources
Q20 | In the fund flow statement, depreciation is----------------
  • Deducted from net profit
  • Added to net profit
  • Sources of working capital
  • Ignored
Answer: Added to net profit
Q21 | Which of the following is non-current asset
  • Goodwill
  • Debtors
  • Stock
  • Prepaid rent
Answer: Goodwill
Q22 | Which of the following will affect the flow of fund
  • a transaction affecting current and non-current accounts
  • a transaction affecting both non-current accounts
  • a transaction affecting both current accounts
  • both a) and b)
Answer: a transaction affecting current and non-current accounts
Q23 | Which of the following is an application of fund
  • Sale of plant
  • Issue of shares
  • Purchase of funds
  • Payment of creditors
Answer: Purchase of funds
Q24 | Current assets are Rs.6,00,000 current liabilities are Rs.3,00,000 the debtors realized Rs.40,000, the impact on net working capital would be-------------------------
  • No change in working capital
  • Decrease of working capital by Rs.80,000
  • Increase of working capital by Rs.40,000
  • None of these
Answer: No change in working capital
Q25 | Gross profit are Rs.50,000 and expenses not result in the application of funds are Rs.10000 funds from operation will be
  • Rs.60000
  • Rs.50000
  • Rs. 40000
  • Rs. 30000
Answer: Rs.60000
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