which of the following transaction will result in inflow of funds? a) issue of debentures b) conversion of debentures into equity shares c) redemption of long term loan d) creation of general reserve
Answers
Answer:
Creation of general reserve
please mark me brainliest
Answer:

Prepare
Practice
Rules of Funds Flow Statement - MCQs
Topics >>
MBA >>
Management Accounting - MCQs with answers -07/07/15
« Previous
Next »
Rules of Funds Flow Statement - MCQs
1. Which of the following statement is true about Funds Flow Statement?
A) It highlights change in funds of a firm at different point
B) It highlights change in funds of different firms at a single point
C) It highlights change in funds of different firms at different point
D) It doesn’t highlights change in funds
a) Only A
b) Only B
c) Only D
d) A, B , C, D
View Answer / Hide Answer
2. In the context of Funds Flow Analysis, the word “funds” is used to define
a) Net Working capital
b) Total current assets-Total current liabilities
c) Both a and b
d) None of the above.
View Answer / Hide Answer
3. Which of the following is/are examples of Funds Flow Statement?
A) Collection of debtors
B) Shares issued for cash
C) Shares issued against the purchase of machinery
D) Shares issued for property
a) A and B
b) A and C
c) A and D
d) A, B, C and D
View Answer / Hide Answer
4. Which of the following statement/s are true about movement of funds?
A) Funds flow in a transaction between current assets and fixed assets.
B) Funds flow in a transaction between current asset and capital
C) Funds flow in a transaction between fixed assets and current liabilities
D) Funds flow in a transaction between current liabilities and capital
a) A and B
b) A and C
c) A and D
d) A, B, C and D
View Answer / Hide Answer
5. Which of the following transactions will result in inflow of funds?
A) Issue of debentures
B) Conversion of debentures into equity shares
C) Redemption of long term loan
D) Creation of General Reserve
a) Only A
b) Only D
c) A and D
d) A, B, C and D
ANSWER: a) Only A