Page 225 - DMGT202_COST_AND_MANAGEMENT_ACCOUNTING

Cost and Management Accounting

Notes Fund Flow Statement

`
Sources ` Applications `
`
Sale of machinery 5,000 Purchase of land 10,000
Loan from P.N.Bank 10,000 Purchase of Building 25,000
Fund from operation 65,000 Drawings 17,000
Repayment of Mr. White Loan 25,000
Increase in working capital 3,000
80,000 80,000
Self Assessment
Choose the appropriate answer
10. The meaning of the “To cash ( Tax paid)” entry posted in the Provision for taxation account
is
(a) Last year taxation is paid through the current year provision
(b) Current year taxation is paid through the current year provision

(c) Last year tax is paid through the last year taxation
(d) Current year taxation is paid through the last year provision

11. Profit on sale of the fixed assets are considered to be

(a) Resource to the enterprise
(b) Non-operating income
(c) Application of the enterprise
(d) None of the above

12. The treatment of current year depreciation with the closing balance of profit in determining
the fund from operations
(a) To be added
(b) To be multiplied
(c) To be deducted
(d) To be divided

13. The redemption bank term loan leads to change in the
(a) Non-current liability account and current asset account
(b) Current asset account and current liabilities account
(c) Non-current asset account and current liabilities account

(d) Non-current asset account and current liabilities account
14. Flow of funds means the change in
(a) funds
(b) working capital
(c) either
(d) both

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