Cash Flow Statement — Accountancy STD 12 Commerce — Question

Debit Balance of Profit & Loss Statement will be shown on:

1. Assets Side of Balance Sheet
2. Liabilities Side of Balance Sheet
3. Under the head Reserve & Surplus
4. Under the head Reserves and Surplus as a negative item

Financial statements are used by __

1. Owners
2. Creditors
3. Tax authorities
4. All the three

Loss on issue of debentures is generally written off in:

1. 5 years
2. 10 years
3. 15 years
4. Over the period of redemption

In accordance with IAS 1 Presentation of Financial Statements, which one of the following statements is correct?

1. Assets and liabilities must be presented broadly in the order of their liquidity.
2. Assets and liabilities can be offset if they result from the same transaction or event.
3. Intangible assets must be presented separately in the statement of financial position.
4. Even if less than 12 months, the length of an entity's operating cycle must be disclosed.

A ______may be defined as a subsidiary or secondary or additional security besides the primary security when a company obtains a loan or overdraft from a bank or any other financial Institution

1. Securities Premium
2. Shares Loan
3. Debenture Loan
4. collateral security

The ___________ ratios are primarily measures of return.

1. Liquidity.
2. Activity.
3. Debt.
4. Profitability.

Which of these transaction would effect current ratio:

1. Realization of Bills receivable
2. Discounting of Bills receivable
3. Disposal of inventory
4. Withdraw of cash from bank for office purpose

NPV of a proposal, as calculated under Risk Adjusted Discount Rate(RADR) & Real Certainty Equivalent(CE) Approach will be __________.

1. Same
2. Unequal
3. Both A and B
4. None of A and B

When shares are forfeited, share capital account is debited by __________.

1. Paid up amount of shares
2. Called up amount of shares
3. Face value of shares
4. Uncalled capital

Which is incorrect Cash Flow Under Financing Activities:

1. Cash purchase of Machinery and Plant
2. Cash repayments of amounts borrowed
3. Dividends paid on equity and preference capital
4. Interest paid on debentures and long-term loans and advances.