Tag: statement of changes in financial position

Questions Related to statement of changes in financial position

Sum of discounted cash flows is best defined as _____________.

book keeping and accountancy statement of changes in financial position meaning, merits and demerits of cash flow statement meaning and objectives of cash flow statement budgeting

  1. technical equity

  2. defined future value

  3. project net present value

  4. equity net present value

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Correct Option: C

Cash Flow Statement explains the reason on surplus or deficit of cash.

book keeping and accountancy statement of changes in financial position meaning, merits and demerits of cash flow statement meaning and objectives of cash flow statement budgeting

  1. True

  2. False

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Correct Option: A

Cash Management and Insurance are chief function of the ____________.

book keeping and accountancy statement of changes in financial position meaning, merits and demerits of cash flow statement meaning and objectives of cash flow statement budgeting

  1. Tax Manager

  2. Controller

  3. Treasurer

  4. Accountant

  5. Finance Manager

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Correct Option: C
Explanation:

The treasurer of an organization deals with the liquid assets of the firm and his responsibilities include cash management and insurance of assets.

Cash Flow is a movement of Cash and Cash Equivalent.

book keeping and accountancy statement of changes in financial position meaning, merits and demerits of cash flow statement meaning and objectives of cash flow statement budgeting

  1. True

  2. False

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Correct Option: A

Cash and Cash Equivalent includes _____________________.

book keeping and accountancy statement of changes in financial position meaning, merits and demerits of cash flow statement meaning and objectives of cash flow statement budgeting

  1. Cash on hand and bank balance.

  2. Marketable Securities.

  3. Short-term investments.

  4. All of the above.

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Correct Option: D

The financial ratio (the best single predictor) that is used in the Beavers Model to predict the failure of a company is the _____________.

book keeping and accountancy statement of changes in financial position meaning, merits and demerits of cash flow statement meaning and objectives of cash flow statement budgeting

  1. Debt-equity ratio

  2. Cash flow to total debt ratio

  3. Price earnings ratio

  4. Return on investment

  5. None of the above

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Correct Option: B

Cash outflows are costs of project and are represented by ____________.

book keeping and accountancy statement of changes in financial position meaning, merits and demerits of cash flow statement meaning and objectives of cash flow statement budgeting

  1. negative numbers

  2. positive numbers

  3. hurdle number

  4. relative number

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Correct Option: A

Which of the following is not a cash inflow?

book keeping and accountancy statement of changes in financial position meaning, merits and demerits of cash flow statement meaning and objectives of cash flow statement budgeting

  1. Purchase of fixed asset

  2. Sale of fixed asset

  3. Issue of debentures

  4. Cash from business operations

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Correct Option: A

Free cash flow is Rs 17000 and net investment in operating capital is Rs 10000 then net operating profit after taxes would be __________.

commercial studies budgeting meaning and objectives of cash flow statement statement of changes in financial position meaning merits and demerits of cash flow statement

  1. Rs 7, 000.00

  2. Rs 27, 000.00

  3. Rs - 27, 000.00

  4. Rs - 7, 000.00

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Correct Option: B

Which Accounting Standard is applicable for preparation of Cash Flow Statement?

commercial studies budgeting meaning, merits and demerits of cash flow statement meaning and objectives of cash flow statement statement of changes in financial position

  1. Accounting Standard - 6

  2. Accounting Standard - 3

  3. Accounting Standard - 2

  4. Accounting Standard - 13

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Correct Option: B