Cash Flow from Investing Activities

Q. Current Ratio is 2.5, Working Capital is ₹ 1, 50, 000. Calculate the amount of Current Assets and Current Liabilities.

Q.

Is a Car a Fixed Asset?

Q.

What is obsolescence in accounting?

Q. The land is a/an asset.

1. depreciable
2. non-depreciable
3. current
4. intangible

Q. Increase in current liabilities like accounts payable, accrued liabilities etc. are under indirect method.

1. added
2. deducted
3. not treated
4. multiplied

Q. Sale of equipment is a cash from investing activities.

1. outflow
2. disbursement
3. distribution
4. inflow

Q. Amortisation is a decrease in the value of assets.

1. tangible
2. intangible
3. all fixed
4. current

Q.

Sale of fixed assets is ___ while calculating cash flow from investing activities.

1. Not treated

2. Added

3. Subtracted

4. None of these

Q.

What Does PP&E Stand for in Accounting?

Q.

Purchase of fixed assets is ___ while calculating cash flow from investing activities.

1. Added

2. Subtracted

3. Not treated

4. None of these

Q.

Welprint Ltd. has given you the following information:

Machinery as on April 01, 2012 : Rs.50, 000

Machinery as on March 31, 2013 : Rs.60, 000

Accumulated Depreciation on April 01, 2012 : Rs.25, 000

Accumulated Depreciation on March 31, 2013 : Rs.15, 000

During the year, a Machine costing Rs 25, 000 with Accumulated Depreciation of Rs. 15, 000 was sold for Rs. 13, 000.

Calculate cash flow from Investing Activities on the basis of the above information.

1. Rs. 10, 400

2. Rs. 10, 000

3. Rs. 22, 000

4. Rs. 17, 200

Q. Compute cash from operations from the following figures
(i) Profit for the year 2010-11 is a sum of Rs. 10, 000 after providing for depreciation of Rs. 2, 000.
(ii) The current assets of the business for the year ended March 31, 2010 and 2011 are as follows:
$\begin{array}{ccc}\text{Particulars}& \text{March 31, 2010}& \text{March 31, 2010}\\ & \text{(Rs.)}& \text{(Rs.)}\\ \text{Debtors}& 10,000& 12,000\\ \text{Provision for Doubtful Debts}& 1,000& 1,200\\ \text{Bills Receivable}& 4,000& 3,000\\ \text{Bills Payable}& 5,000& 6,000\\ \text{Creditors}& 8,000& 9,000\\ \text{Inventories}& 5,000& 8,000\\ \text{Short Term Investments}& 10,000& 12,000\\ \text{Outstanding Expenses}& 1,000& 1,500\\ \text{Prepaid Expenses}& 2,000& 1,000\\ \text{Accrued Income}& 3,000& 4,000\\ \text{Income Received in Advance}& 2,000& 1,000\end{array}$
Prepare of cash flow statement from summary cash account.

Q. Purchase of investments is a/an activity.

1. investing
2. operating
3. financing
4. credit

Q. Goods worth Rs. 10, 000 were withdrawn by the proprietor for his personal use. The account to be credited is ___________.

1. Purchases A/c
2. Drawing A/c
3. Sales A/c
4. Expenses A/c

Q.

What is an example of a depreciable asset?

Q.

Is Goodwill Depreciated?

Q. What are the different cash inflows and cash outflows of investing activities?

Q.

Purchase of investment is ___ while calculating cash flow from investing activities.

1. Added

2. Not treated

3. Subtracted

4. None of these

Q. If there is fall in the value of investment in comparison to previous year, it means we have some investment.

1. purchase
2. sold
3. not treated
4. distributed

Q. What do you mean by super profit?

1. None
2. Total profit/number of years
3. Weighted profit /number of years
4. Average profit -normal profit

Q.

When the instalment paid in respect of a fixed asset acquired on deferred payment basis includes both interest and loan, the interest element is classified under financing activities & and the loan element is classified under ___ activities.

1. Investing

2. Operating

3. Financing

4. None of these

Q. An asset is having the book value of Rs. 50, 000 was sold for Rs.36, 000. The asset account will be credited with .

1. Rs. 14, 000
2. Rs. 36, 000
3. Rs. 50, 000
4. Rs. 64, 000

Q.

How do you depreciate tools?

Q. The best definition of 'Capital employed' in calculating the rate of return on investment is:

1. Current assets + gross fixed assets
2. Working capital + gross fixed assets
3. Working capital + net fixed assets
4. Current assets + net fixed assets

Q. Calculate : Sales
Opening Debtors Rs.5000
Opening Bills Receivable Rs.2000
Cash received from Debtors (including cash from bills receivable) Rs.10000
Closing bills receivable Rs.1000
Closing debtors Rs.8000

1. 10000
2. 13000
3. 12000
4. Cannot be Ascertained

Q. Closing stock of the previous year becomes the opening stock of the current year.

1. True
2. False

Q. Question : Following information is given below calculate the closing capital

Items	Jan 1, 2011 (Rs)	Dec 31, 2011 (Rs)
Creditors	$5,000$	$30,000$
Bills Payable	$10,000$	----
Loan	-----	$50,000$
Bills receivable	$30,000$	$50,000$
Stock	$5,000$	$30,000$
Cash	$2,000$	$20,000$

Calculation of profit or loss and ascertainment of statement of affairs at the end of the year (Opening Balance is given)
Note : In the above question, opening and closing balances of capital are not given, so first of all we have to prepare statement of affairs at the beginning and at the end of the year. Then only we will be able to get the profit figure of the year.
Statement of Affairs
as on 1st January 2011

Liabilities	Amt. (Rs)	Assets	Amt. (Rs)
Creditors	$5,000$	Bills receivable	$30,000$
Bills Payable	$10,000$	Stock	$5,000$
Capital (Balancing Figure)	$22,000$	Cash	$2,000$
	$37,000$		$37,000$

Statement of Affairs
as on 31st December, 2011

Liabilities	Amt. (Rs)	Assets	Amt. (Rs)
Creditors	$30,000$	Bills Receivable	$50,000$
Loan	$50,000$	Stock	$30,000$
Capital (Balancing Figure)	$20,000$	Cash	$20,000$
	$1,00,000$		$1,00,000$

Statement of Profit or Loss
for the year ended as on 31st December, 2011

Particulars	Amt. (Rs)
Capital at the end of the year i.e., December 2011	$20,000$
(-) Capital at the beginning of the year i.e., January 2011	$22,000$
Loss during the year 2011	$2,000$

Q. Goods were sold on credit to Mr. Ram for 10, 000. It will be recorded in __________________.

1. Journal Proper (General Journal)
2. Cash Book
3. Purchase Book
4. Sales Book

Q. ____________ does not suffer depreciation.

1. Plant and Machinery
2. Building
3. Mineral Mines
4. Land

Q. If in question its said that
investment were sold
in revaluation a/c what will we write in particulars column by investment or by bank
also tell entry if old computer previously written off now sold.
In particulars bank or office equipment? ??