Fill in the blanks:-
1. The two statements which are generally included in the definition of financial of
Statements are ……
Ans. P & L A/C balance sheet
2. Income statement ( P & L A/C ) …… the revenues and costs incurred in the Process of earning revenues.
Ans. Matches.
3. Balance sheet is a statement of …… of a business at a specific movement of time.
Ans. Financial position
4. Assets & liabilities in a balance sheet (B/S) may be arranged either according to
…… order or ……. Order
Ans. Liquidity & permanency.
5. Financial statements disclose only …… facts.
Ans. Monetary.
6. P & L A/C is also called the ……
Ans. Income statement.
7. Rearrangement of figures is necessary for …… & ……
Ans. Analysis & interpretation.
Fill in the blanks:
1. Fund flow refers to changes in …….. capital.
2. Building sold on credit is …….. of funds.
3. Goods purchased on credit …….. inflow of fund.
4. Commission outstanding is …… of funds.
5. Any gain on the sale of non – current assets should be …… from the net profit for determining funds from operators.
6. Difference between C.A. & C.L is known as …….
7. Depreciation is sometimes treated as …… funds.
Answer:
1. Working
2. A source
3.Does not result
4. An application
5. Deducted
6. Working capital
7. A source
True or False:
1. Purchase of stock in trade is an application of funds
2. A decrease in C.L. increases W.C.
3. Fund flow refers to change in long term funds.
4. The FFS shows changes in the individual items comprising W.C.
5. Fund flow analysis shows the position of business as on the closing date of business period.
6. W.C. is the different between F.A & C.A.
7. Cash or credit sales at a profit increase the W.C.
8. Purchase of fixed assets is a use of funds.
9. Amortization of preliminary expenses in a use of funds.
10. Payment of dividends is a use of funds
11. For FFS provision for taxation will be treated as an item of interest Source.
Answer:
(1) T, (2) T, (3) F, (4) F, (5) F, (6) F, (7) F, (8) T, (9) F, (10) T, (11) T
.Multiple Choices Question:
1. Increase in an asset due to purchase is
a) Source of funds
b) User of funds
c) None
2. Net profit earned plus non – W.C. expenses is equal to
a) Funk provided by operations.
b) Use of funds
c) Sinking fund
3. Tax paid is ___
a) Application of funds
b) Source of funds
c) No flow of funds
4. Stock at the end results in the
a) Application of fund
b) Source of fund
c) No flow fund
5. An increase in the share premium A/C is
a) An application of fund
b) A source of fund
c) No flow of fund
6. Sale of investments indicate
a) Source of fund
b) Application of fund
c) Change in C.A.
Answer:
(1) B, (2) A, (3) A, (4) B, (5) B, (6) A