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Management accounting

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

Meaning of fund

a)

Net working capital

b)

Cash

c)

Non cash items

d)

None of the above

2.

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

a)

True

b)

False

3.

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

a)

Application of fund

b)

Source of fund

c)

None of the above

4.

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

a)

A. Flow of funds

b)

B. No flow of funds

c)

C. None of the above

d)

D. Both A and B

5.

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

a)

A. Flow of funds

b)

B. No flow of funds

c)

C. None of the above

d)

D. Both A and B

6.

Sources of funds include

a)

A. Sale of Fixed assets

b)

B. Issue of share capital

c)

C. Raising long term loans

d)

D. All of the above

7.

Application of funds include

a)

A. Purchase of fixed assets

b)

B. Repayment of debentures

c)

C. Repayment of loans

d)

D. All of the above

8.

Funds flow statement consisting of

a)

Funds from operations

b)

Statement of working capital changes

c)

Sources and application of funds

d)

All of the above

9.

When proposed dividend is treated as non current item

a)

A. It is shown in the working capital changes

b)

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

c)

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

d)

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

e)

E. Both B and C

10.

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

a)

Sources of funds

b)

Application of funds

c)

None of the above