Page 160 - DMGT403_ACCOUNTING_FOR_MANAGERS

Unit 7: Fund Flow Statement

5. Fund flow statement is categorized into two parts Notes
(a) Fund inflow and Fund outflow
(b) Cash inflow and Cash outflow
(c) Sources and Applications

(d) None of the above
6. Fund from operations is
(a) Sources of the firm
(b) Applications of the firm

(c) Neither sources nor applications
(d) None of the above
7. Purchase of plant and machinery 10 lakh through the issue of 1 Lakh shares at 10 per
share; affect the following accounts:
(a) Non-current asset and Non-current liabilities accounts
(b) Non-current asset and Current liabilities accounts
(c) Current asset account and Non-current liabilities accounts

(d) Current asset and current liabilities accounts.
8. XYZ Ltd. has made a credit purchase of 1 lakh worth of goods led to 1 lakh worth of
additional stock of tradable goods for the enterprise, leads to

(a) Increase in the working capital – Applications
(b) No change in the working capital position – Neither an application nor resource
(c) Decrease in the working capital – Resource
(d) None of the above

9. 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
10. 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

11. The treatment of current year depreciation with the closing balance of profit in determining
the fund from operations
(a) To be added

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