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Free Download PDF of Accounting Questions with Answers as per exam pattern, to help you in day to day learning. We provide all important questions and answers for all Exam.
37. In funds flow statement, outflow of funds on account of operations is
- [A] application of fund
- [B] source of cash
- [C] application of cash
- [D] source of fund
Answer: Option [A]
38. In funds flow statement, repayment of long-term loans is
- [A] application of fund
- [B] source of cash
- [C] application of cash
- [D] source of fund
Answer: Option [A]
39. In adjusted P & L account, depreciation on fixed assets will be
- [A] debited
- [B] credited
- [C] ignored
- [D] deducted
Answer: Option [A]
40. Cash flow analysis is based on the
- [A] capital
- [B] fixed assets
- [C] cash concept of funds
- [D] working capital
Answer: Option [C]
41. In cash flow statement, increase in current asset
- [A] increases cash
- [B] decreases cash
- [C] increases working capital
- [D] decreases working capital
Answer: Option [B]
42. In cash flow statement, opening balances of bank balance is posted in which side of the statement
- [A] sources of cash
- [B] application of cash
- [C] sources of funds
- [D] application of funds
Answer: Option [A]
43. In cash flow statement, closing balances of bank balance is posted in which side of the statement
- [A] sources of cash
- [B] application of cash
- [C] sources of funds
- [D] application of funds
Answer: Option [B]
44. Production cost under marginal costing includes
- [A] prime cost only
- [B] prime cost and fixed overhead
- [C] prime cost and variable overhead
- [D] prime cost, variable overhead and fixed overhead
Answer: Option [C]
45. Contribution margin is equal to
- [A] fixed cost - loss
- [B] profit + variable cost
- [C] sales - fixed cost - profit
- [D] sales - profit
Answer: Option [A]
46. P/V Ratio is an indicator of
- [A] the rate at which goods are sold
- [B] the volume of sales
- [C] the volume of profit
- [D] the rate of profit
Answer: Option [D]
47. An increase in variable costs
- [A] increases p/v ratio
- [B] increases the profit
- [C] reduces contribution
- [D] increases margin of safety
Answer: Option [C]
48. CVP analysis is most important for the determination of
- [A] sales revenue necessary to equal fixed costs
- [B] relationship between revenues and costs at various levels of operations
- [C] variable revenues necessary to equal fixed costs
- [D] volume of operations necessary to Break-even
Answer: Option [A]
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