Accounting - Questions and Answers for Competitive Exams | GkSeries

37. In funds flow statement, outflow of funds on account of operations is

1. [A] application of fund
2. [B] source of cash
3. [C] application of cash
4. [D] source of fund

Answer: Option [A]

38. In funds flow statement, repayment of long-term loans is

1. [A] application of fund
2. [B] source of cash
3. [C] application of cash
4. [D] source of fund

Answer: Option [A]

39. In adjusted P & L account, depreciation on fixed assets will be

1. [A] debited
2. [B] credited
3. [C] ignored
4. [D] deducted

Answer: Option [A]

40. Cash flow analysis is based on the

1. [A] capital
2. [B] fixed assets
3. [C] cash concept of funds
4. [D] working capital

Answer: Option [C]

41. In cash flow statement, increase in current asset

1. [A] increases cash
2. [B] decreases cash
3. [C] increases working capital
4. [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

1. [A] sources of cash
2. [B] application of cash
3. [C] sources of funds
4. [D] application of funds

Answer: Option [A]

43. In cash flow statement, closing balances of bank balance is posted in which side of the statemen

1. [A] sources of cash
2. [B] application of cash
3. [C] sources of funds
4. [D] application of funds

Answer: Option [B]

44. Production cost under marginal costing includes

1. [A] prime cost only
2. [B] prime cost and fixed overhead
3. [C] prime cost and variable overhead
4. [D] prime cost, variable overhead and fixed overhead

Answer: Option [C]

45. Contribution margin is equal to

1. [A] fixed cost - loss
2. [B] profit + variable cost
3. [C] sales - fixed cost- profit
4. [D] sales - profit

Answer: Option [A]

46. P/V Ratio is an indicator of

1. [A] the rate at which goods are sold
2. [B] the volume of sales
3. [C] the volume of profit
4. [D] the rate of profit

Answer: Option [D]

47. An increase in variable costs

1. [A] increases p/v ratio
2. [B] increases the profit
3. [C] reduces contribution
4. [D] increases margin of safety

Answer: Option [C]

48. CVP analysis is most important for the determination of

1. [A] sales revenue necessary to equal fixed costs
2. [B] relationship between revenues and costs at various levels of operations
3. [C] variable revenues necessary to equal fixed costs
4. [D] volume of operations necessary to Break-even

Answer: Option [A]