Q. Among the following items which item is shown on the debit side of Adjusted Profit and Loss Account?
✅ Correct Answer: (D)
All of the Above
Advanced Financial Management 2 MCQs and Notes
Q. The Funds Flow and Cash Flow statements fail to give a clear idea about profitability of the company.
✅ Correct Answer: (A)
True
Q. When a part of the Fixed Assets is sold during the year, the Profit on sale is shown on the credit side of which Account?
✅ Correct Answer: (A)
Adjusted Profit and Loss Account
Q. Which of the following are Current Liabilities?
✅ Correct Answer: (D)
All of the Above
Q. Which of the following are Non-current Assets?
✅ Correct Answer: (A)
Land, Building and Plant
Q. For Meghal Industries Ltd. opening balance for Provision for Taxation is Rs. 18,000 and closing balance is Rs. 15,000. During the year Taxed paid wereRs. 10,000. What is the current year’s Provision for Taxation made from the profit?
✅ Correct Answer: (C)
Rs. 7,000
Q. For Ram Industries, the balance of property has beenRs 20,000 and Rs 17,000 in 2018 and 2019 respectively. The profit on sale of property of Rs 2000 is credited to Capital Reserves Account. New property costing Rs 5000 bought in 2019. Determine sale proceeds forproperty.
✅ Correct Answer: (B)
Rs. 10,000
Q. The balance of fixed assets of Breej Ltd. at the end of 2018 and 2019 were Rs 5,70,800 and Rs 6,15,300. During the year 2019 a machinery costing Rs 60,000 was sold. Determine the purchase of fixed assets.
✅ Correct Answer: (A)
Rs. 1,04,500
Q. Which of the following are treated as long term investments?
✅ Correct Answer: (D)
All of the above
Q. Which of the following statements is true? 1. If the amount of good will increases during current year, the difference is treated as purchase of goodwill. 2. If the amount of good will decreases during current year, It will treated as written off.
✅ Correct Answer: (C)
Both 1 and 2