Cash Flow Statement Test

Result

Cash Flow Statement Test - 16

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Weekly Quiz Competition

Question 1
1 / -0

Purchase of stock-in-trade on credit results into _______________.

A
Source of funds

B
Application of funds

C
No flow of funds

D
All of the above
Question 2
1 / -0

____________ shows the details of cash generating and utilization activities of a company during a given period of time.

A
Cash flow statement

B
Profit and Loss A/c

C
Balance sheet

D
Segment reports

Solution

Cash flow statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents, and breaks the analysis down to operating, investing and financing activities. It shows the details of cash generating and utilization activities of a company during a given period of time.
Question 3
1 / -0

The financial ratio (the best single predictor) that is used in the Beavers Model to predict the failure of a company is the _____________.

A
Debt-equity ratio

B
Cash flow to total debt ratio

C
Price earnings ratio

D
Return on investment

E
None of the above
Question 4
1 / -0

The key issue in an international cash management is

A
Giving sufficient independence to individual subsidiaries

B
Centralizing and minimizing independence of subsidiaries

C
Deciding whether hedging is required or not

D
Striking the right balance between decentralization and centralization

E
None of the above
Question 5
1 / -0

An over valuation of previous years opening inventory will...........

A
Causes current year's net income to be overstated

B
Causes previous year's net income to be understated

C
Causes previous year's net income to be overstated

D
Have no effect
Question 6
1 / -0

........ exposure can not be managed by traditional hedging techniques due to unpredictability of the changes in the cash flows. It requires various marketing, production and financial management strategies to cope with the risk.

A
Translation

B
Transaction

C
Economic

D
None of the above
Question 7
1 / -0

An undervaluation of previous year's opening inventory will.........

A
Cause current years net income to be overstated

B
Causes previous year net income to be understated

C
Causes previous year net income to be overstated

D
None
Question 8
1 / -0

Revenues affect net income ......

A
in the period during which they are earned

B
in the period during when they are collected

C
in the period during when they are accounted for

D
any of the above three which occur first
Question 9
1 / -0

Cash flow statements reflects _______

A
fund position

B
operating performance

C
financial performance

D
solvency position
Question 10
1 / -0

Income or expenses that arises from events or transactions that are clearly distinct from the ordinary activities of the enterprises and therefore are not expected to recur frequently or regularly are called ___________.

A
prior-period items

B
extraordinary items

C
abnormal items

D
non-ordinary items

Solution

Extraordinary items in accounting are income statement events that are both unusual and infrequent. These are transactions that are abnormal and don't relate to the principal business activities. They also are not predictable or occur on regular basis. For example, if company reported a huge loss from natural disaster in its income from operations, the net operating income would be artificially low even though its operations might be higher than last year.

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Re-Attempt Weekly Quiz Competition

Cash Flow Statement Test - 16

Result

Cash Flow Statement Test - 16

Score

-

Rank

-

SHARING IS CARING

Question 1

Source of funds

Application of funds

No flow of funds

All of the above

Question 2

Cash flow statement

Profit and Loss A/c

Balance sheet

Segment reports

Solution

Question 3

Debt-equity ratio

Cash flow to total debt ratio

Price earnings ratio

Return on investment

None of the above

Question 4

Giving sufficient independence to individual subsidiaries

Centralizing and minimizing independence of subsidiaries

Deciding whether hedging is required or not

Striking the right balance between decentralization and centralization

None of the above

Question 5

Causes current year's net income to be overstated

Causes previous year's net income to be understated

Causes previous year's net income to be overstated

Have no effect

Question 6

Translation

Transaction

Economic

None of the above

Question 7

Cause current years net income to be overstated

Causes previous year net income to be understated

Causes previous year net income to be overstated

None

Question 8

in the period during which they are earned

in the period during when they are collected

in the period during when they are accounted for

any of the above three which occur first

Question 9

fund position

operating performance

financial performance

solvency position

Question 10

prior-period items

extraordinary items

abnormal items

non-ordinary items

Solution

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Question Analysis

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