Opening stock = 5000 units @ 5; Purchases during the period = 10,000 units @ 6;

(1) Units sold = 11,000 @ 10. Find change in Profit if the company shifts from LIFO to

FIFO

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(a) Profit increases by 10,000

(b) Profit reduces by 10,000
(c) Profit reduces by 4,000
(d) Profit increases by 4,000
(e) Don't Know

(2)

A ltd started business with cash of 50,000. Purchased goods for $40,000 on credit. Edit
Expenses paid: 10000. Sold entire goods at 80000 for cash. Find cash and profit
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(a) Cash (220,000) Profit(130,000)

(b) Cash (120,000), Profit (20,000)
(c) Cash (120,000) Profit(30,000)
(d) Cash (100,000) Profit (30,000)
(e) Don't Know

A ltd issued 10,000 shares of 10 at 30; Availed 10% Loan: 100,000; Purchased
furniture 20,000 for cash; Purchased shares of XY Ltd.: 200,000; Purchased stock
(3)
for cash: 50,000; Expenses paid: 5000; Sales: 80000 (50% on credit). Find Cash
From Operations (CFO) and Cash from Investment (CFI).
(a) CFI ( -320,000) CFO ( 25000)
(b) CFI (180000) CFO (20000)
(c) CFI (280000) CFO (50000)
(d) CFI (-220,000), CFO (-15000)
(e) Don't Know

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(4)

Opening stock = 5000 units @ 6; Purchases = 8000 @ 10. Sales = 5000 @ 20.
Company uses FIFO. Find stock value & COGS

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(a) Stock (80,000) COGS (30,000)

(b) COGS (80,000) Stock (30,000)
(c) Stock (60,000) COGS (50,000)
(d) COGS (60,000) Stock (50,000)
(e) Don't Know

A ltd. purchased plant at 50,000 from own funds. Installation expenses = 10,000.
(5) Life of the assets 10yea$ Sales = 50,000. COGS = 25% of Sales. Show the

accounting equation

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(a) Capital (115,000) + Profit (0) = Plant (85000) + Cash (30000)

(b) Capital (50,000) + Profit (21500) = Plant (44000) + Cash (27500)
(c) Capital (100,000) + Profit (15000) = Plant (85000) + Cash (30000)
(d) Capital (60,000) + Profit (31500) = Plant (54000) + Cash (37500)
(e) Don't Know

(6)

The company issued share capital for $$ 24,000 paid loan $15,600 ,dividend
$5,200, interim dividend $ 1,500. Find cash flow from financing activities (CFF)

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(a) Rs1,700
(b) $2,300
(c) $1,100
(d) None of the above.
(e) Don't Know

Altd issued 10,000 shares of 10 at 30; Availed 10% Loan: 100,000; Purchased
furniture for cash 20,000; Purchased shares of XY Ltd.: 200,000; Purchased stock
(7)
for cash: 50,000; Expenses paid: 5000; Sales: 80000 (50% on credit). Find Cash
and Profit

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(a) Cash (170000) Profit (30000)

(b) Cash (175000) Profit (25000)
(c) Cash (165000) Profit (15000)
(d) Cash (165000) Profit (30000)
(e) Don't Know

Altd issued 10,000 shares of 10 at 30; Used the money to buy shares of XY ltd.
(8) After six month sold the shares of XY Ltd. at a profit of 50%. Find Cash from

investment activities (CFI)

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(a) 150000
(b) 300000
(c) 450000
(d) None of the above
(e) Don't Know

(9)

Profit = 10,000. Depreciation = 5000, Credit Sales = 8000. Credit expenses = 5000.
Find cash from operation

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(a) 18000
(b) 28000
(c) 35000
(d) 12000
(e) Don't Know

A ltd. purchased plant at 50,000 for cash. Paid installation expenses = 10,000.
(10) Fully capitalized. Life of the assets 10 years. Sales = 50,000. COGS = 25% of Sales.

Find Cash from investing decisions (CFI).

(a) Negative 50,000
(b) Negative 60,000

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(c) Positive 50,000

(d) Positive 50,000
(e) Don't Know