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Accounting for Managers

Notes (b) To be multiplied
(c) To be deducted
(d) To be divided
12. 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

13. Flow of funds means the change in
(a) Funds (b) Working capital
(c) Either (d) Both
14. Which of the following is not an objectives fund-flow analysis?

(a) It pinpoints the mobilization of resources and the further utilization of resources
(b) It highlights the financing of the general expansion of the business firms
(c) It exemplifies the utilization of debt finance in the structure of financing
(d) None of these.

15. Which of the following is not a source of fund?
(a) Purchase of Long-term Investments
(b) Acceptance of deposits
(c) Sale of Non-current Assets

(d) Decrease in Working Capital

7.11 Review Questions

1. From the following two Balance Sheet as at December 31, 2008 and 2009. Prepare the
statement of sources and uses of funds.

2008 ( ) 2009 ( ) 2008 ( ) 2009 ( )
Liabilities
Share capital 80,000 90,000
Trade creditors 20,000 46,000
Profit & Loss a/c 4,60,000 5,00,000
Assets
Cash 60,000 94,000
Debtors 2,40,000 2,30,000
Stock in trade 1,60,000 1,80,000
Land 1,00,000 1,32,000
5,60,000 6,36,000 5,60,000 6,36,000

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