Test on Fund Flow Statement

15 marks Theory and 15 marks Problem

Part A

(C) Prepare Fund flow statement

…………………………………………..
Part B
1. Enumerate the steps involved in the preparation of a Fund Flow Statement
2. Distinguish between Balance Sheet and Fund Flow Statement
3. Multiple Choice Type Questions

Funds flow statement is prepared on the basis of _________.

a) Profit and loss account of the current year
b) The balance sheet of the previous and current year
c) Both a and b
d) None of the above
Which of the following are current assets?
a) Furniture
b) Accounts receivable
c) Fixed investments
d) None of the above
Which of the following are current liabilities?

a) Accounts payable
b) Bonds payable
c) Deferred tax liabilities
d) None of the above

If the total sources of funds are Rs. 2,00,000 and total application of funds are Rs. 2,50,000 then the
working capital will ___________.
a. Decrease by Rs. 50,000
b. Increase by Rs. 50,000
c. Not be affected
d. None of the above

Select the correct formula for calculation of the working capital from the following four options
a) Working capital = Current assets – current liabilities
b) Working capital = current assets + current liabilities
c) Working capital = Current assets/current liabilities
d) Working capital = Current liabilities – Current assets