1) Given Net profit for the year Rs 2,50,000 transferred to general reserves Rs 40,000 and old machinery bought for Rs 50,000 was sold for Rs 20,000. Calculate funds from operations.
a. Rs 2,80,000
b. Rs 2,20,000
c. Rs 2,90,000
d. Rs 3,00,000
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Answer
Explanation
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ANSWER: Rs 2,80,000
Explanation:
No explanation is available for this question!
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2) The balance of fixed assets of Y Ltd. at cost at the end of 2013 and 2014 were Rs 5,70,800 and Rs 6,15,300. During the year 2014 a machinery costing Rs 60,000 was sold. Determine the purchase of fixed assets.
a. Rs 1,04,500
b. Rs 1,40,500
c. Rs 1,64,500
d. None of the above
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Answer
Explanation
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ANSWER: Rs 1,04,500
Explanation:
No explanation is available for this question!
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3) The balance of property at cost has been Rs 20,000 and Rs 17,000 in 2013 and 2014 respectively. The profit on sale of property of Rs 2000 is credited to Capital Reserves Account. New property costing Rs 5000 bought in 2014. Determine sale of proceeds from land.
a. Rs 3000
b. Rs 10,000
c. Rs 7000
d. Rs 15,000
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Answer
Explanation
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ANSWER: Rs 10,000
Explanation:
No explanation is available for this question!
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4) Funds Flow Statement holds significance for
a. Shareholders
b. Financiers
c. Government
d. All of the above
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Answer
Explanation
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ANSWER: All of the above
Explanation:
No explanation is available for this question!
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5) In the balance sheet of Praveen for 2013 and 2014, 4% debentures are Rs 5,00,000 and Rs 4,00,000, respectively. Profit on redemption of debentures in 2013 is nil while in 2014 is Rs 4,000. What is the amount of redemption for the purpose of funds flow statement?
a. Rs 96,000
b. Rs 1,04,000
c. Rs 9,00,000
d. Rs 9,04,000
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Answer
Explanation
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ANSWER: Rs 96,000
Explanation:
No explanation is available for this question!
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6) The opening and closing balance of general reserves are Rs 10,000 and Rs 9,000, respectively. It is stated in addition information that a loss of Rs 1000 has been written off in general reserves. In such a case, decline in reserve and loss on investment will be adjusted in P&L account.
a. True
b. False
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Answer
Explanation
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ANSWER: False
Explanation:
No explanation is available for this question!
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7) Which of the following statement is true?
A) If the amount of good will increases during current year, the difference is treated as purchase of goodwill.
B) If the amount of good will decreases during current year, It will treated as written off.
a. Only A
b. Only B
c. Both A and B
d. None of the above
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Answer
Explanation
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ANSWER: Both A and B
Explanation:
No explanation is available for this question!
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8) As per accounting standard AS3, provision for taxation should be treated as
a. As a current liability
b. As an appropriation of profits
c. Either a or b
d. None of the above
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Answer
Explanation
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ANSWER: As an appropriation of profits
Explanation:
No explanation is available for this question!
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9) Provision of taxation is treated as
a. As a current liability
b. As an appropriation of profits
c. Either a or b
d. None of the above
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Answer
Explanation
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ANSWER: Either a or b
Explanation:
No explanation is available for this question!
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10) Which of the following are treated as long term investments?
a. Non-current investments
b. Trade Investments
c. Sinking fund investments
d. All of the above
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Answer
Explanation
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ANSWER: All of the above
Explanation:
No explanation is available for this question!
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