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This set of Accounting for Managerial Decisions Multiple Choice Questions & Answers (MCQs) focuses on Accounting For Managerial Decisions Set 5
Q1 | Any gain on sale of non-current asset should be ----- from the net profit for determining fundsfrom operation
- Deducted
- Added
- Increased
- None of these
Q2 | Asset sold on credit is---- of funds
- Application
- Uses
- Source
- Decrease
Q3 | Furniture sold for cash -----funds flow
- Increases
- Decreases
- Deducted
- None of these
Q4 | Goodwill is a ---------------------transaction
- Current
- Noncurrent
- Fixed
- None of these
Q5 | 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
Q6 | To arrive at funds from operation ,non-cash expenses must be added to----------
- Net profit
- Gross profit
- Operating profit
- None of these
Q7 | Fund flow statement is accompanied by a schedule of-----------------------------
- Changes in working capital
- Flow of funds
- Increase in fund
- Decrease in fund
Q8 | Goods purchased on credit-----------inflow of funds
- Does not result
- Does result
- Change
- None of these
Q9 | ----------account is prepared to know funds from operation
- Profit & Loss appropriation account
- Profit and loss account
- Trading account
- Profit & Loss adjustment account
Q10 | Increases in current liabilities --------------working capital
- Increase
- Decreases
- Added
- None of these
Q11 | Increase in current assets-------------working capital
- Increases
- Decreases
- Deducts
- Reduces
Q12 | Decrease in current liabilities --------------------working capital
- Increases
- Decrease
- Deducts
- Reduces
Q13 | Net increase in working capital results in----------------of funds
- sources
- inflow
- no change
- application
Q14 | Net decrease in working capital results in --------------------of funds
- Source
- Application
- No change
- None of these
Q15 | -------------------means transfer of economic value of firm from one asset or equity to another.
- Flow of funds
- Uses of fund
- Inflow of funds
- Application of funds
Q16 | Funds from operations are --------------of funds
- Application
- Uses
- Sources
- No change
Q17 | In the fund flow statement, depreciation is----------------
- Deducted from net profit
- Added to net profit
- Sources of working capital
- Ignored
Q18 | Which of the following is non-current asset
- Goodwill
- Debtors
- Stock
- Prepaid rent
Q19 | 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)
Q20 | Which of the following is an application of fund
- Sale of plant
- Issue of shares
- Purchase of funds
- Payment of creditors
Q21 | 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
Q22 | Gross profit are Rs.50,000 and expenses not result in the application of funds are Rs.10000 fundsfrom operation will be
- Rs.60000
- Rs.50000
- Rs. 40000
- Rs. 30000
Q23 | Which of the following is a non-current liability
- Mortgage loan
- Bank balance
- Outstanding salary
- None of these
Q24 | Current liabilities are equals to-------------------------------
- Working capital +current assets
- Working capital-current assets
- Current assets-working capital
- Current asset + working capital
Q25 | Inflow of fund does not take place due to----------------
- Funds from operation
- Increase in capital
- Increase in working capital
- Sale of fixed asset