Model Paper 4 — Accountancy STD 12 Commerce — Question

Cash from Operating activities will decrease due to:

1. Increase in Current Assets
2. Decrease in Current Liabilities
3. Both A and B above
4. Neither of the two

X Ltd issues 500,15% Debentures of Rs100 each on 1st May at a discount of 10% redeemable at a premium of 5% after 4 years. Interest was payable half yearly on 30th June and 31st December. The amount of interest accrued but not due to be shown in the balance sheet as at 31st March is:

1. Rs1,250
2. Rs1,875
3. Rs3,750
4. Rs5,000

Net profit during the year Rs5,00,000, Depreciation in the beginning Rs1,50,000, Depreciation at the end Rs2,50,000, What is the amount of funds from operation?

1. Rs5,00,000
2. Rs6,00,000
3. Rs4,00,000
4. Rs1,00,000

Dividends are usually paid on ___________.

1. Authorised capital
2. Issued capital
3. Called-up capital
4. Paid-up capital

Which of the following transactions will result into ‘Flow of Cash’?

1. Deposited ₹ 10,000 into bank.
2. Withdrew cash from bank ₹ 14,500.
3. Sale of machinery of the book value of ₹ 74,000 at a loss of ₹ 9,000.
4. Converted ₹ 2,00,000 9% debentures into equity shares.

Which of the following is an example of activity ratio?

1. Net profit ratio
2. Operating ratio
3. Current ratio
4. None of the above

In case debentures of ₹ 10,000 are issued at par but redeemable at a premium of 10%, the premium payable is debited to:

1. Debentures Suspense Account.
2. Premium on Redemption of Debentures Account.
3. Loss on Issue of Debentures Account.
4. Both (a) and (c).

Claims received from Insurance Companies are treated as:

1. Cash Flow from Operating Activities
2. Cash Flow from Investing Activities
3. Cash Flow from Financing Activities
4. None of these

Financial statements are prepared on the basis of facts in the form of cost data recorded in the ______ period.

1. Accounting
2. Financial
3. Managerial
4. None of the above

Which of the following is not a case of combination?

1. External reconstruction
2. Internal reconstruction
3. Amalgamation
4. Absorption