M.C.Q (1 Marks)

MCQ 11 Mark

Value of copyrights was Rs.68,000 in the year 31st March 2015 but after one year on 31st March 2016 value of copyrights was Rs. 1,00,000. How it will affect the cash flow statement?

A
Add Rs. 1,00,000 in investing activities
B
Less Rs. 32,000 in investing activities
C
Add Rs. 32,000 in investing activities
D
Less Rs. 1,00,000 in investing activities

Answer

(b) Less Rs. 32,000 in investing activities
Explanation:
Increase in the value of copyrights means the company has purchased copyrights (Non-Current Assets). So Less Rs. 32,000 in investing activities. Increase or decrease in the value of non-current assets is shown under-investing activity.

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MCQ 21 Mark

Which of the following item is not added or deducted while preparing a cash flow statement?

A
Dividend Received
B
Bonus shares issued
C
Dividend Paid
D
Purchase of goodwill

Answer

(b) Bonus shares issued
Explanation:
Issue of bonus shares will not affect the preparation of cash flow statement as in this transaction no cash involved. There is no cash inflow or outflow of cash.

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MCQ 31 Mark

The objectives of Cash Flow Statement are
A. Analysis of cash position
B. Short-term cash planning
C. Evaluation of liquidity
D. Comparison of Operating Performance

A
A, B, C, D
B
Both A and C
C
Both A and B
D
Both B and D

Answer

(a) A, B, C, D
Explanation:
A, B, C, D

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MCQ 41 Mark

The ratio of Current Assets (₹ 10,00,000) to Current Liabilities (₹ 4,00,000) is 2.5 : 1. The accountant of the firm is interested in maintaining a Current Ratio of 1.8 : 1, by acquiring some Current Assets on Credit. Current asset acquired will be:

A
2,80,000
B
3,00,000
C
3,50,000
D
1,50,000

Answer

(c) 3,50,000
Explanation:
Let the Current Assets acquired on credit = X
10,00,000 + X / 2,50,000 + X = 1.8 / 1
X = 6,87,500

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MCQ 51 Mark

Under which heading the item bills discounted but not yet matured will be shown in the balance sheet of a company?

A
Current Assets
B
Contingent Liabilities
C
Current Liability
D
Unamortised Expenditure

Answer

(b) Contingent Liabilities
Explanation:
Contingent Liabilities

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MCQ 61 Mark

Which objective is useful for the external users of financial statements?

A
Assessing the Managerial Efficiency
B
Inter-firm Comparison
C
Assessing the Short-term and Long-term Solvency of the Firm
D
Assessing the Earning Capacity or profitability

Answer

(d) Assessing the Earning Capacity or profitability
Explanation:
Assessing the Earning Capacity or profitability

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Accountancy M.C.Q (1 Marks)

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