e ee e e s e i e e

. eee s
se

U9
9. Issue of debentures is a cash flow from
a) Operating activities Investing activities
b)
c Financing activities d) Non of the above
10. Redemption of debentures is a cash flow from
a) Operating activities Investing activities
b)
c) Financing activities d) None of the abovve
11. Decrease in debtors
a) Increases cash flow from Operating activities
b) Decreases cash flow from financing activities
c) Decreases cash flow from investing activities
d) None of the above
12. Decrease in Current Liabilities
a) Decreases flow from operating activities
b) Increases cash flow from operating activities
c) Increases cash flow from financing activities
d) None of the above
13 Dividend paid causes cash flow from
a) Operating activities b) Financing activities
c) Investing activities d) None of the above
14 Interest received causes cash flow from
a) Operating activities b Financing activities
c) Investing activities d) None of the above
e ee s e i e
22. Refer to Q. No. 21 cash flow used for
investing activities wi 3,80,000
a)2,50,000 7 3,55,000 d)
b) 7 3,05,000 c)
23 Balance sheet as on 31-3-
Liabilities Assets
2009
2008
2008 2009
Provision for Depreciation 3,80,000 3,00,000 Machinery
16,20,000 13,20,000
was s o l d
1,40,000 0
Dunng the year depreciation provided was 1.40.000 and a machine costing of T
1,10,000. The cash inflow from investing activitieswill be:
d) 59,000
a) 55,000 b) 60,000 c) 50,000
24
24 X's capital on 1-1-2008 1,48,000
On 31-12-2008 F 1,49,000
Drawings during the year 26,000
Profit for the year
17,000.
Cash inflow from financing activities will be
c)727,000 d) 7 30,000
a)20,000 b) 10,000
cash for financing activities will be
25 Refer to Q. No. 24 the use of d) 42,000
a)7 43,000 b) 17,000 c) 26,000
26. Issue of Bonus Shares causes cash flow from
b)
b) Financing Activities
a) Operating Activities
d) None of the above
c) Investing Activities

Debentures 31-3-20087 4,00,000

27 on

On 3-3-2009 7 3,00,000
Cash flow from financing activities will be d) 1,00,000
T 3,00,000 c)
c) 6,00,000
a)77,00,000
a) b)
28 Debtors on 31-3-2008 7 2,50,000
On 31-3-2009 3,00,000 activities will be:
6,00,000 cash flow from operating
Credit sales during the year d)74,00,000
c) 5,00,000
a) 75,50,000 b) 50,000
 Managerial D
Accounting Jor
252
29. Creditors on 31-3-2008 T1,40,000
On 31-3-2009 1,80,000
Credit purchases 3,50,000
Purchase Returns 5,000
Discount allowed by creditors 3,000
be d) 71,80,000
Cash flow from operating activities will c) 3,50,000
b) 3,02,000
a)3,00,000
30. Opening Stock 5,000
Purchases 20,000

Expenses 5,000
Sales 40,000
Closing stock 10,000
Cash fronm operation will be : d) 40,000
c) 22,000
a) 15,000 b) 20,000
T 35,000
31 G.P
7 10,000
Expenses
Interest Received T 2,000
7 2,000
Outstanding expenses
Interest received in advance 500
Cash from operation will be: d) 30,000
c) T 27,000
a)20,000 b) 24,000
32. For cash flow statement cash equivalent includes Money market instruments
a) Bank deposits for 21 days b)
d) All of the above
c)TreasuryBills
33. Acquisition of a long term investment is a

a) Investing activity b) Financing activity

None of the above
c) Operating activity d)
34 Acquisition of a subsidiary is
a) Investing activity b) Financing activity
c) Operating activity d) None of the above
35. Income tax Refund is a
a) Investing activity b) Operating activity
c) Financing activity d) None of the above
36 Cash sales is
a) Financing activity b) Operating activity
c)Investingactivity d) None of the above
37. Collection from debtors is
a) Financing activity b) Investing activity
c) Operating activity d) None of the above
38. Interim dividend paid is
a) Operating activity b) Investing activity
c) Financing activity d) None of the above
39. Brokerage paid on issue of shares is
a) Investing activity b) Financing activity
c) Operating activity d) None of the above
40. Interest paid on long term borrowingis
a) Financing activity b) Investing activity
c) Operating activity d) None of the above
41 Dividend received on shares held is
a) Investing activity
c) Operating activity
Financing activity
d) None of the above
42. Proceeds from sale of patents is
a) Financing activity b) Investing activity
c)Operatingactivity d) None of the above
 assets isa
Sale of fixed
a)Investingactivity b) Financing activity
c)Operatingactivity d) None of thc above
pepreciation is
on assets

a)added back to profit

b) deducted from profit
c)ignored
d) None of the above
Payment of underwriting commission is
a) Operating activity b) Investing activity
c) Financing activity d) None of the above
t6Increase in share capital due to issue ofshares for cash increases cash flow from
a) Financing activities b) Investing activities
c)Operatingactivities d) None of the above
Issue of shares against conversion of Debentures increases cash flow from
a) Investing activities b) Financing activities
c)Operatingactivities d) None of the above
S. Redemption of debentures is a cash flow from
a) Investing activities b) Financing activities

c)Operatingactivities d) None of the above

19 Payment of interim dividend is use of cash in
a) Financing activities b) Operating activities
c) Investing activities d) None of the above

50. Increase in Patents is a cash used in

a) Operating activities b) Investing activities

c) Financing activities d) None of the above

Discount on Debentures is added back to current years profit to find out cash from
51.
Operating activities
a) Financing activities b)
None of the above
c) Investing activities d)
cash from
52. Provision for doubtful debts in case all debtors are good is added back to profit to get
Operating activities
a) Investing activities b)
None of the above
c) Financing activities d)
53. As per AS 3 cash comprises
b) Bank balance
a) Cash in hand only
d Bank deposits only
c)Cash & cash equivalent
cash flow statements as
54 Office expenses will be shown in the
b) Investing cash flow
a) Operating cash flow None of the above
c)Financingcash flow d)
investment will be shown in the cash flow
statement as
5. Rent received on property held as
Investing cash flow
b)
a) Operating cash flow None of the above
d)
c) Financing cash flow
S6 Payment of rent creates Operating cash flow
b)
a) Financing cash flow None of the above
d)
c) Investing cash flow statement as
the cash flow
57. Bank overdraft will be shown in Investing cash flow
b)
a) Operating cash flow Financing cash flow
Cash & cash equivalent d)
creditors creates
58. Endorsement of bills receivable to Financing cash flow
b)
a) Operating cash flow None of the above
cash flow d)
c) Investing
for bad debts creates
9. Bad debts written off against the provision
a) Cash inflow b) Cash outflow
None of the above
c)Both(a) & (b) d)
cash flow statements as
00. Marketable securities are shown in the Investing cash flow
cash flow b)
a) Operating Cash & cash equivalent
c)Financing cash flow d)
61 Sale of stock in trade creates Cash outflow

a) Cash inflow
b)
None of the above
c) (a) & (b)
d)
62. Sale of Trade marks creates cash flow from Investing activities

a) Operating activities b)
None of the above
c) Financing activities
d)
63. Goodwill written off is deducted from book profit
a) added to book profit b) outflows
treated as cash
d)
c) ignored from
asset is cash flow
64. Tax on capital gain on sale of fixed Financing activities
a) Investing activities b)
the above
c) Operating activities d) None of
65. Cash equivalent is long term investment
b)
a) highly liquid investment None of the above
most risky investment d)
c)
66. Cash equivalents are held for term cash
commitment
b) meeting long
a) meeting short term cash commitment
None of the above
c)both a &b d)
67. Cash equivalent must be subject to Significant risk of changes
in value
a) Insignificant risk of changes in value b)
None of the above
c)Moderate risk of changes in value d)
68. Cash equivalent is readily convertible into
b) Shares
a) Known amount of cash
None of the above
c)Debentures d)
69. The following is not a cash equivalent
b) Bank Balance
a) Cash Balance
d) None of the above
c) Investment in shares
result operating activities is cash from
70. Cash generated in business as a
Investing activities
a) Operating activities b)
None of the above
c) Financing activities d)
from
71. Insurance claim received from earthquake disaster settlemnent is cash flow
a) Investing activities b) Financing activities
c) Operating activities d) None of the above
received creates cash flow from
12. Trading commission Investing activities
a) Financing activities b)
c) Operating activities d) None of the above
Decrease in stock creates cash
flow from
73.
a) Operating activities b) Investing activities
c) Financing activities d) None of the above
creates cash outflow from
4 Decrease in outstanding expenses
a) Investing activities b) Financing activities
c) Operating activities d) None of the above
Increase in creditors for goods creates cash inflow fromn
75.
a) Financing activities b) Investing activities
c) Operating activities d) None of the above
76. Increase in Unclaimed dividend affects cash flow from
a) Operating activities b) Financing activities
c) Investing activities d) None of the above
77. Decrease in Goodwill is added to
cash inflow
a) Net profit to get operating
cash inflow
b) Gross Profit to get operating
cash inflow
c) Operating profit to get operating
d) None of the above
78. Increase in provision for depreciation represents
a) depreciation provided during the year b) depreciation on asset sold
denresiation on asset purchased d) None cf he above
19. Cash receipts from future contracts is a cash flow from
a) b) Investing activities
a) Operating activities
c) Financing activities d) None of the above
80. Buyback of equity shares creates cash flow from
a) Investing activities b) Financing activities
c) Operating activities d) None of the above
a), (12 a),
[Ans. (1 -a), (2- c), (3 b), (4 c), (5 c), (6 b), (7 c), (8 c), (9 c), (10 -c), (11
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(23 c),
(13 b), (14 c), (15 a), (16 - c), (17-b), (18 a), (19 a), (20 b), (21 b), (22 c),
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a), (34 a),
(24 b), (25 -c), (26 d), (27 d), (28 a), (29 -b), (30 a), (31 c), (32 d), (33
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(45 c),
(35 b), (36 b), (37- c), (38 c), (39 -b), (40 a), (41 a), (42 b), (43 a), (44 a),
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b), (56 b),
(46 a), (47 d(48 b)(49 a), (50 -b), (51 -b), (52 b), (53 c), (54 a), (55
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(67 a),
(57 c), (58 d), (59 d), (60 d), (61 a), (62 -b), (63 a), (64 a), (65 a), (66 a),
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b), (77 a), (78 a),
(68 a), (69- c), (70 a), (71 c), (72 c), (73 a), (74 c), (75 c), (76
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(79-b), (80 a)]