Management accounting

Meaning of fund

• Net working capital

• Cash

• Non cash items

• None of the above

Current assets realise in cash with in one year in the normal course of business

• True

• False

When a transaction results in increased in fund , such a transaction is said to be

• Application of fund

• Source of fund

• None of the above

When a transaction involve only current accounts or only non- current accounts then there is

• A. Flow of funds

• B. No flow of funds

• C. None of the above

• D. Both A and B

When a transaction involves a current account and a non-current account then there is

• A. Flow of funds

• B. No flow of funds

• C. None of the above

• D. Both A and B

Sources of funds include

• A. Sale of Fixed assets

• B. Issue of share capital

• C. Raising long term loans

• D. All of the above

Application of funds include

• A. Purchase of fixed assets

• B. Repayment of debentures

• C. Repayment of loans

• D. All of the above

Funds flow statement consisting of

• Funds from operations

• Statement of working capital changes

• Sources and application of funds

• All of the above

When proposed dividend is treated as non current item

• A. It is shown in the working capital changes

• B. It is added back to profit in funds from operations

• C. It is shown in the application of funds in Funds flow statement

• D. It is shown as sources in the Funds flow statement

• E. Both B and C

If Rs. 20,000, 14% debentures are redeemed then it results in

• Sources of funds

• Application of funds

• None of the above