Practice Test

Q1) The Preparation of Cash flow Statement has become ____ now-a-day Show Answer

Q2) Analytical Methods and devices used in analysing financial statements are : Show Answer

Q3) Cash flow Statement is based on Show Answer

Q4) Cash flow statement is prepared on : Show Answer

Q5) Cash Flow Statement is more useful in _____ analysis Show Answer

Q6) Fund Flow Statement is based on the concept of ___________ Show Answer

Q7) Fund Flow Statement is prepared on Show Answer

Q8) Fund Flow Statement is more useful in Show Answer

Q9) MIS is a necessity of ____ Show Answer

Q10) MIS is a ________ Show Answer

Q11) MIS helps in : Show Answer

Q12) Financial Statements are prepared on the basis of : Show Answer

Q13) Financial Statements are very much relevant to Show Answer

Q14) Objective of the analysis financial statements analysis can be Show Answer

Q15) Modus operandi of analysis financial statement analysis Show Answer

Q16) Fund Flow Statement also refers to as Statement of Show Answer

Q17) Flow of fund include both Show Answer

Q18) The MIS is a system which provides information Support for _____ in the organizations Show Answer

Q19) Current ratio are equal to ______ Show Answer

Q20) Return of an Investment are equal to __________ Show Answer

Q21) Capital Employed are equal to _________ Show Answer

Q22) Return on Assets are equal to ________ Show Answer

Q23) Capital turnover ratio are equal to _______ Show Answer

Q24) Total Assets Turnover Ratio are equal to ______ Show Answer

Q25) Stock turnover Ratio are equal to __________ Show Answer

Q26) Creditors Turnover Ratio is Show Answer

Q27) Current Ratio is Show Answer

Q28) Liquid Ratio is Show Answer

Q29) Debt - Equity Ratio is Show Answer

Q30) Proprietary Ratio is Show Answer

Q31) Fixed Assets Ratio is Show Answer

Q32) Debt Service Ratio is Show Answer

Q33) Capital Gearing Ratio is Show Answer

Q34) Earning Per Share (EPS) is Show Answer

Q35) Price Earning Ratio is Show Answer

Q36) Pay-out Ratio is Show Answer

Q37) The meaning of inventory means Show Answer

Q38) Consider the following information relating to Shiva Ltd.: Net worth Rs. 250 lakhs ; Total assets Rs. 600 lakhs; Long-term debt Rs. 200 lakhs; Current liabilities Rs. 150 lakhs. The debt-equity ratio of the company is : Show Answer

Q39) If current ratio is given as 2.5, liquid assets are rs60,000, then the value of the stock will be : Show Answer

Q40) Which of the following firms would have the least liquidity : Show Answer

Q41) The ________ ratios measure the ability of the firm to meet its maturing short-term obligations. Show Answer

Q42) The quick ratio is also called as ____ ratio or ______ ratio. Show Answer

Q43) The _________ratio indicates the proportion of long-term funds deployed in fixed assets. Show Answer

Q44) The actual debtors collection period should be compared with _____ of the company in analyzing the efficiency of credit control department. Show Answer

Q45) The ____ margin may be compared with that of competition in the industry to assess the operational performance. Show Answer

Q46) The measure of net profit earned per share is termed as _______ Show Answer

Q47) A high dividend payout signifies _______ distribution policy of the company. Show Answer

Q48) AS-3 (Revised) is mandatory for : Show Answer

Q49) Securities premium collected amounts to cash flow from : Show Answer

Q50) Dividend received should be classified as cash inflow from______ activities : Show Answer

Q51) Under _____ method, the difference between cash receipts and cash payments are taken to arrive at the net cash flow from operating activities. Show Answer

Q52) The increase in current asset will _____ cash from operations. Show Answer

Q53) Losses made in trading activities will cause to : Show Answer

Q54) The relationship between sources and application of funds and its impact on ____ is explained in statement of sources and application of funds. Show Answer

Q55) The decrease in sundry debtors will result in ________ of working capital. Show Answer

Q56) The increase in provision for doubtful debts will result in ____ of working capital. Show Answer

Q57) The excess of current assets over current liabilities is called ________ Show Answer

Q58) A flow of funds takes place only if _____ account is involved. Show Answer

Q59) The fund flow statement is prepared in between__________balance sheet dates. Show Answer

Q60) The term cash profit indicates; Show Answer

Q61) A very high current ratio will Show Answer

Q62) A very high current ratio may be due to Show Answer

Q63) Current ratio shows Show Answer

Q64) One of the following is not an absolute Liquid asset Show Answer

Q65) Liquid ratio which is equal to the following is favorable Show Answer

Q66) Proprietary ratio shows Show Answer

Q67) Higher proprietary ratio shows that Show Answer

Q68) Higher gearing means Show Answer

Q69) High geared company exposes to Show Answer

Q70) Shareholder's equity includes Show Answer

Q71) Fixed Income bearing funds do not include one the following : Show Answer

Q72) Loan fund does not include one of the following Show Answer

Q73) The ratio that indicates ability of the company to pay urgent obligation immediately is Show Answer

Q74) A low inventory turnover ratio indicates Show Answer

Q75) Higher Stock turnover ratio as compared to industry indicates that Show Answer

Q76) A longer payment period indicates that Show Answer

Q77) Longer collection period indicates that Show Answer

Q78) Higher G. P. ratio may be due to Show Answer

Q79) Stock working capital ratio is a proportion between Show Answer

Q80) One of the reasons responsible for decrease in gross profit ratio is Show Answer

Q81) Return on capital employed is a relationship between Show Answer

Q82) Return on capital employed is also known as : Show Answer

Q83) Debt equity ratio is a relationship between Show Answer

Q84) Debt service ratio shows Show Answer

Q85) Dividend payout ratio is a proportion between Show Answer

Q86) Operating ratio is a proportion between Show Answer

Q87) Shareholder's equity does not include Show Answer

Q88) Net profit ratio indicates Show Answer

Q89) Proprietary ratio is a proportion between Show Answer

Q90) Return on proprietors fund indicates Show Answer

Q91) Operating performance is best measured by Show Answer

Q92) Current ratio is 2.5 working capital is rs.60, 000 current assets will be Show Answer

Q93) Current ratio is 2.5 working capital is rs.60, 000 current labilities will be Show Answer

Q94) G.P Rs. 1, 00, 000 Total sales Rs. 5, 25, 000 sales return Rs. 25, 000G.P ratio will be Show Answer

Q95) Net sales Rs. 1, 40 000 G.P Rs. 10, 000 N.P Rs. 6,000 B.R Rs.2000, Debtors Rs.8, 800, stock Rs. 10,000 cash Rs.6,000 creditors Rs.12,000, Bills payable Rs.8,800. Current ratio will be Show Answer

Q96) Net sales Rs. 1, 40 000 G.P Rs. 10, 000 N.P Rs. 6,000 B.R Rs.2000, Debtors Rs.8, 800, stock Rs. 10,000 cash Rs.6,000 creditors Rs.12,000, Bills payable Rs.8,800. Current NOP will be Show Answer

Q97) Net sales Rs. 1, 40 000 G.P Rs. 10, 000 N.P Rs. 6,000 B.R Rs.2000, Debtors Rs.8, 800, stock Rs. 10,000 cash Rs.6,000 creditors Rs.12,000, Bills payable Rs.8,800. G.P ratio will be Show Answer

Q98) Sales are Rs.33,984 sales return Rs. 380 opening stock Rs.1,378 closing stock Rs.1, 814 GP Rs. 8, 068. Stock turnover ratio will be Show Answer

Q99) . Liquid ratio is 1.5, net working capital is Rs.1, 20, 000 stock is Rs.80,000 current assets will be Show Answer

Q100) Opening stock Rs. 62,000 purchases Rs.4, 20, 000 sales Rs.6, 00, 000 GP 33.33% on cost closing stock will be Show Answer

Q101) Current ratio 4: 1, liquid ratio 3: 1. If inventory is Rs.36, 000. Current assets will be Show Answer

Q102) Current ratio 4: 1, liquid ratio 3: 1. If inventory is Rs.36, 000. Working Capital will be Show Answer

Q103) Opening stock Rs. 29, 000 closing stock Rs.31, 000 sales Rs. 3, 00, 000. GP 25% on cost. Stock turnover ratio will be Show Answer

Q104) Stock turnover 5times, closing stock Rs.10, 000 more than that of the beginning, credit sale Rs.4, 00, 000, GP 25% on cost current liabilities Rs.1, 20, 000 Acid test ratio 0.75. Current assets will be Show Answer

Q105) Debt equity ratio is 1:2 which of the following would increase the ratio. Show Answer

Q106) NP before interest and tax Rs.5, 00, 000. Interest is Rs.1, 00, 000. Interest coverage will be Show Answer

Q107) Cost of goods sold Rs. 1, 00, 000, stock turnover 4 times, closing stock Rs.10, 000 in excess of opening stock, opening and closing stock will be Show Answer

Q108) 15% Debentures Rs.4, 00, 000 NP after interest and tax Rs.50, 000 proprietor fund Rs.2, 40, 000. Tax rate 50%. 15% preference share capital is Rs.1, 00,000. Return on capital employed Show Answer

Q109) Total debt Rs.9, 00,000. Capital employed Rs.12, 00 000, current liabilities Rs.1, 00 000. Debt equity ratio will be Show Answer

Q110) Debt Equity Ratio is 2. The change in the ratio due to purchase of fixed assets on credit of 2 months is Show Answer

Q111) Share holders fund is Rs.80, 000. Total debt is Rs.1, 80, 000 ,current liabilities Rs.20, 000, preference capital Rs.40, 000. The capital gearing ratio will be Show Answer

Q112) NP before interest and tax is Rs3, 20,000 interests is Rs.40, 000. The interest coverage is Show Answer

Q113) Opening stock is Rs.20, 000, closing stock Rs. 10, 000 , Purchases Rs. 50, 000 wages Rs.3,000,carriage Rs.2,000 the STR is Show Answer

Q114) Cost of goods sold is Rs.5, 40,000,Net sales Rs.6, 00,000. Sales returns Rs.10, 000. The GP ratio is Show Answer

Q115) GP ratio is 20%. Purchase of goods Rs.20, 000 will Show Answer

Q116) Operating profit ratio of a company is 20%. What is the effect of purchase of goods Rs.20, 000 on operating profit? Show Answer

Q117) Net profit after interest and tax Rs.2, 22,000, equity capital (10 each) Rs.1, 00,000. the EPS is Show Answer

Q118) EPS Rs.22.20, Prize per share Rs.222. The P/E ratio is Show Answer

Q119) The quick ratio is 2:1 cash received from debtors will Show Answer

Q120) Net credit sales Rs.1, 00, 000. Average debtors Rs.25, 000. Collection period is Show Answer

Q121) Operating profit ratio if operating ratio is 85% Show Answer

Q122) Working capital is Rs.1, 20, 000. Total debt Rs.2, 60,000, long term debt Rs.2, 00,000. The current ratio Show Answer

Q123) Current ratio is 4.5, liquid ratio is 3, inventory is Rs.36, 000, the liquid assets will be Show Answer

Q124) Ratio is a proportion between two figures. Show Answer

Q125) One figure is divided by another figure to get _____ratio. Show Answer

Q126) Turnover ratios is expresses in ________. Show Answer

Q127) Balance sheet ratio is a ratio between two figures from ____ Show Answer

Q128) Combined ratio is ratio between one figure from ________ and another figure from Show Answer

Q129) current ratio = __________/current liabilities Show Answer

Q130) Current ratio shows _____ financial position Show Answer

Q131) Dividend payout ratio shows dividend paying trend of the firm. Show Answer

Q132) Debt service ratio shows the servicing of debt. Show Answer

Q133) Debt collection period shows the period taken by debtors to pay. Show Answer

Q134) Stock working capital ratio is a relationship between stock and working capital. Show Answer

Q135) Activity of the management is judged by debtors turnover ratio. Show Answer

Q136) Expenses ratio is a relationship between expenses and sales. Show Answer

Q137) Higher G. P. ratio shows higher trading efficiency of an organization. Show Answer

Q138) Equity fund includes debentures Show Answer

Q139) In general low turnover ratio is desirable. Show Answer

Q140) It is conceptually correct to decide stock turnover ratio by dividing cost of goods sold by average stock. Show Answer

Q141) Excess of sales over cost of goods sold is gross profit. Show Answer

Q142) Proprietary ratio examines short term solvency position Show Answer

Q143) Capital gearing ratio shows the speed of capital. Show Answer

Q144) Debt equity is a proportion between short term debt and equity. Show Answer

Q145) Operating ratio must be higher for measurementof profitability Show Answer

Q146) Net profit ratio a measure of profitability Show Answer

Q147) Capital employed is equal to fixed assets. Show Answer

Q148) Pref. share capital is a loan capital Show Answer

Q149) Liquid ratio is a relationship between liquid assets and _____ Show Answer

Q150) _________ are near cash assets Show Answer

Q151) working capital is an excess of current assets over ________ Show Answer

Q152) Debt equity ratio shows proportion between _______ and____ Show Answer

Q153) Proprietary ratio shows = ______ / total assets Show Answer

Q154) Cost of goods sold is divided by average stock to get _____ Show Answer

Q155) _______ shows trading efficiency Show Answer

Q156) ______ shows operating efficiency Show Answer

Q157) Stock _____shows the speed of movement of stock Show Answer

Q158) ________Ratio shows ability of a firm to service Show Answer

Q159) ______shows the period for which amount of sales remains invested in debtors. Show Answer

Q160) Current ratio and acid test ratio are the same. Show Answer

Q161) Acid test ratio test the acid Show Answer

Q162) Short term solvency ratio measures the ability of the firm to pay current liabilities Show Answer

Q163) Current ratio Show Answer

Q164) The standard current ratio is Show Answer

Q165) Gross profit ratio Show Answer

Q166) Which of the following asset is not a quick current asset Show Answer

Q167) Revenue statement ratios may study Show Answer

Q168) When opening stock is Rs.10000, closing stock Rs.12000 and cost of goods sold Rs.44,000 stock turnover ratio is Show Answer

Q169) Proprietory ratio Show Answer

Q170) Dividing net sales by average debtor would yield. Show Answer

Q171) Capital gearing ratio Show Answer

Q172) Under trading implies Show Answer

Q173) Debt equity ratio Show Answer

Q174) parties interested in ratio Show Answer

Q175) Liquidity can be studied from Show Answer

Q176) Low proprietary ratio indicates Show Answer

Q177) Following ratio is useful for debentureholders Show Answer

Q178) Trading on Equity is computed _______ ratio. Show Answer

Q179) Standard liquid ratio Show Answer

Q180) The ratio which indicate the relation between loan fund and propritor's fund Show Answer

Q181) A Liquid ratio lower than 1:1 shows. Show Answer

Q182) The ratio which indicates the collection period of the company Show Answer

Q183) While computing Proprietory ratio Show Answer

Q184) Which is liquidity ratio Show Answer

Q185) Quick liabilities indicates_______ Show Answer

Q186) Current ratio is 2:1, working capital is Rs.10,00,000, so current liability will be _______ . Show Answer

Q187) What ratio indicates the relatioship betweenshareholders funds and outsiders finance? Show Answer

Q188) A high G.P ratio indicates ________ Show Answer

Q189) A high proprietory ratio indicates ________. Show Answer

Q190) Earning per share Show Answer

Q191) High stock turnover ratio indicates Show Answer

Q192) Which of the following is a liquidity ratio? Show Answer

Q193) When the current ratio is 2:5 and the amount of current liabilities is Rs.50,000what is amount of working capital ? Show Answer

Q194) If the earning per share is Rs.3.50 and return on equity is 33 1/3%, the book value per share is Show Answer

Q195) When Quick ratio is 1.5:1 and amount of quick assets Rs.15,000 what is the amount of quick liabilities? Show Answer

Q196) What ratio are applied to find out the efficiency of performance of a firm? Show Answer

Q197) Classification of ratio from the point of view of Creditors Show Answer

Q198) Debtors turnover ratio shows the number ofdays taken by the company to collectmoney from _______. Show Answer

Q199) If the Current ratio is given 2:1 and cheque from debtor received and in Balance sheet there is Bank overdraft.The ratio will Show Answer

Q200) The current ratio is the ratio of Show Answer

Q201) Ratio can be expressed in Show Answer

Q202) Cash flow statement provides information that Show Answer

Q203) Cash received from sale of machinery is treated as cash inflow from Show Answer

Q204) One of the following in not treated as cash equivalent Show Answer

Q205) Unrealized gains and losses arising in foreign exchange are Show Answer

Q206) Payment relating to capitalized R& D cost is a cash flow from Show Answer

Q207) One of the following is considered as cash transaction Show Answer

Q208) AS 3 is mandatory for Show Answer

Q209) Issue of debentures is a cash flow from Show Answer

Q210) Redemption of debentures is a cash flow from Show Answer

Q211) Decrease in debtors Show Answer

Q212) Decrease in current liabilities Show Answer

Q213) Dividend paid causes cash flow from Show Answer

Q214) Interest received causes cash flow from Show Answer

Q215) Proceeds from earthquake disaster settlement is cash flow from Show Answer

Q216) Repayment of lease liabilities is a cash flow from Show Answer

Q217) Loans to subsidiaries is a cash flow from Show Answer

Q218) Income tax payment is a cash flow from. Show Answer

Q219) Investment on 1-1-2008 Rs.2,10,000 Investment on 31-12-2008 Rs.50,000 During the year the company purchased investments costing of Rs.2,16,000 and sold some investments at a loss of 20% of book value. The cash inflow from investing activities will be, Show Answer

Q220) Investment on 1-1-2008 Rs.2,10,000 Investment on 31-12-2008 Rs.50,000 During the year the company purchased investments costing of Rs.2,16,000 and sold some investments at a loss of 20% of book value. The cash outflow from investing activities will be, Show Answer

Q221) Furniture as on 31-3-2008 Rs.5,00,000 Furniture as on 31-3-2009 Rs.8,00,000 During the year the company charged depreciation of Rs.50,000 and furniture costing Rs.12,000, depreciation provided Rs.7,000 was sold at 60% profit on book value. Cash in flow from investing activities will be, Show Answer

Q222) Furniture as on 31-3-2008 Rs.5,00,000 Furniture as on 31-3-2009 Rs.8,00,000 During the year the company charged depreciation of Rs.50,000 and furniture costing Rs.12,000 depreciation provided Rs.7,000 was sold at 60% profit on book value. Cash in flow from investing activities will be, Show Answer

Q223) X's capital on 1-1-2008 Rs.1,48,000 on 31-12-2008 Rs.1,49,000 Drawing during the year Rs.26,000Profit for the year Rs.17,000. Cash inflow from financing activities will be Show Answer

Q224) X's capital on 1-1-2008 Rs.1,48,000 on 31-12-2008 Rs.1,49,000 Drawing during the yearRs.26,000Profit for the year Rs.17,000. Cash outflow from financing activities will be Show Answer

Q225) Debentures on 31-3-2008 Rs.4, 00,000, on 31-3-2009 Rs.3,00,000 Cash flow from financing activities will be Show Answer

Q226) Cash flow statement is prepared as per AS__ Show Answer

Q227) Cash flow is classified into _____ Show Answer

Q228) Cash receipt from sale of goods is cash flow from________ Show Answer

Q229) Refund of income tax is cash flow from ________ Show Answer

Q230) Payment to employees is a cash flow from________ Show Answer

Q231) Cash received from sale of machine is a cash flow from ___ Show Answer

Q232) Purchase of building is a cash flow from _________ Show Answer

Q233) Purchase of investment is a cash flow from_________ Show Answer

Q234) Issue of debentures is a cash flow from __________ Show Answer

Q235) Redemption of Pref. shares is a cash flow from _________ Show Answer

Q236) Interest on loan paid is a cash flow from ________ Show Answer

Q237) Dividend paid should be shown as cash flow from _______ Show Answer

Q238) Decrease in debtors increases cash flow from ________ Show Answer

Q239) Decrease in creditors decreases cash flow from _________ Show Answer

Q240) Depreciation is ______to net profit to get cash flow from operating activities Show Answer

Q241) Goodwill W/off is added to NP to get cash flow from Show Answer

Q242) Decrease in working capital _____ flow from operating activities. Show Answer

Q243) Increase in working capital reduces cash flow from_____ Show Answer

Q244) Collection from debtors is calculated from_________ Show Answer

Q245) Purchase & sale of fixed assets is ascertained from ______ Show Answer

Q246) Interest paid is Show Answer

Q247) Cash from business operations can be determined directly from income statement. Show Answer

Q248) Working capital from business operations can bedetermined from P & L A/c. Show Answer

Q249) Sources of cash should always be more than uses of cash in the cash flow statement. Show Answer

Q250) Interest on debenture is a part of cash flow from operating activities. Show Answer

Q251) Interest on deposits in bank is put under investing activities. Show Answer

Q252) Sources of cash must be equal to uses of cash. Show Answer

Q253) Revaluation of building affects cash flow. Show Answer

Q254) Sale of machinery is a source of cash fromfinancing activities. Show Answer

Q255) Cash flow statement is mandatory for all firms. Show Answer

Q256) Cash flow statement is prepared as per AS3. Show Answer

Q257) Issue of share capital creates cash flow from financial activities. Show Answer

Q258) In cash flow statement cash balance at the beginning and at the end of the year are shown separately Show Answer

Q259) Change in current assets is adjusted in cash flow from operating activities Show Answer

Q260) Increase in current liabilities is adjusted in cash flow from operation. Show Answer

Q261) Redemption of debenture creates a cash flow from financing activities. Show Answer

Q262) Redemption of pref. shares creates cash flow from financing activities. Show Answer

Q263) There is only one direct method for determination of cash flow from operating activities. Show Answer

Q264) Income tax paid is adjusted in cash flow from operating activities. Show Answer

Q265) Refund of public deposits is an application of cash. Show Answer

Q266) Depreciation creates a cash flow. Show Answer

Q267) Purchase of vehicles is an application of cash from investing activities Show Answer

Q268) Cash flow from operating activities is calculated by Direct method and Indirect method.. Show Answer

Q269) For the purpose of Cash Flow Statement, 'Cash Equivalents' include Show Answer

Q270) AS______is related to cash flow statement. Show Answer

Q271) The acquisition & disposal of short term assets and investment Show Answer

Q272) A cash flow statement is useful for _____term planning Show Answer

Q273) Income tax paid Show Answer

Q274) In the cash flow statement cash & cash equivalents includes Show Answer

Q275) Tax on capital gains on sales of fixed asset is Show Answer

Q276) following are the extra ordinary items except. Show Answer

Q277) Cash purchases Show Answer

Q278) the term cash includes Show Answer

Q279) Issue of Bonus share Show Answer

Q280) cash paid to suppliers Show Answer

Q281) fully depreciated equipment was scrapped and no salvage was realised. Show Answer

Q282) cash payment for salaries Show Answer

Q283) For Cash Flow Statement, 'Cash ' include Show Answer

Q284) For cash flow statement interest paid is Show Answer

Q285) Cash received by issue of shares Show Answer

Q286) Issue of shares against the purchase of plant & machinery is Show Answer

Q287) Producing activities of the enterprises is Show Answer

Q288) Non-cash transaction is Show Answer

Q289) Acquiring & selling of a business Show Answer

Q290) Bills receivable endorsed to creditors. Show Answer

Q291) Scrap sale is Show Answer

Q292) Acquiring of Land & building will be classified as Show Answer

Q293) Redemption of debentures Show Answer

Q294) Receipts of Dividend will be Show Answer

Q295) Cash received by sale of shares of a company should be classified as Show Answer

Q296) Repayment of short term loan will be classified as Show Answer

Q297) Cash generated under direct method includes Show Answer

Q298) Marketable securities will be Show Answer

Q299) Payment of dividend will be Show Answer

Q300) Purchase of goods for cash will be Show Answer

Q301) For Cash flow statement interest received is Show Answer

Q302) Dividend paid is considered as Show Answer

Q303) Dividend received is considered as Show Answer