Q. Principle’ for preparation of working capital statement -Increase in current liability .
✅ Correct Answer: (B)
decreases working capital.
Cost and Management Accounting (CMA) MCQs and Notes
Q. Principle’ for preparation of working capital statement - Decrease in current asset .
✅ Correct Answer: (B)
decreases working capital.
Q. Principle’ for preparation of working capital statement -Increase in current asset .
✅ Correct Answer: (A)
increases working capital.
Q. Any transaction between a non current account and another non current account does not affect .
✅ Correct Answer: (C)
working capital.
Q. Any transaction between a current account and another current account does not Affect .
✅ Correct Answer: (B)
funds.
Q. All those liabilities which are payable in cash in the normal course of business within a period of one year are called _.
✅ Correct Answer: (D)
current liabilities.
Q. All those assets which are converted into cash in the normal course of business within one year are known as .
✅ Correct Answer: (B)
current assets.
Q. Funds flow statement is based on the .
✅ Correct Answer: (A)
working capital concept of funds.
Q. The indicates the number of times the payables rotate in a year is _.
✅ Correct Answer: (C)
creditors velocity ratio.
Q. Creditors turnover ratio is also called .
✅ Correct Answer: (C)
. accounts payables ratio.