Cash Flow Statement

1. Which of the following is not an utility of cash flow statement.

a) Operating excess cash which can be applied for investment in fixed assest
b) Changes in cash and cash equivalent of an organization
c) Ascertainment of reasons for change in the financial position of an organization
d) Ascertainment of cash generated from ooerating activities
2. Which of the following is not a feature of operating activity.
a) It represents principle revenue generating activity
b) It represents expenditure with thr intention to generate future income and cash flow
c) It represents those transactions and events that are considered in determination of net
profit or loss

Accounting for share capital and debenture

1. Which of the following capital is known as reserved capital

a) It is a part of issued capital that has been subscribed
b) The reserves generate by business over the period of time
c) The portion of subscribed capital which has not been called up
d) The portion of capital which will ve called only on the winding up of the company

2. In which of the following represents account the balance left in the shares forfeited account
relating to re-issured share
a) Capital reserve account
b) Reserve capital account
c) Profit and loss account
d) Share capital account

Amalgamation of companies
1. What are conditions for amalgamation in the nature of merger
a) All the assets and liabilities of the tansferor company become, after amalgamation, the
assets and liabilities of the transferee company
b) The business of the tansferor company is intended to be carried on, after the
amalgamation, by the tansferee company
c) Shareholder holding not less then 90%of the face value of the equity share of the
tranferor company become equity shareholders of the tansferee company by virtue of
the amalgamation
d) All of the above

2. At the time of amalgamation, purchase consideration does not include

a) The sum which the tansferee company will directly pay to the creditors of the transferor
company
b) Payment made in the form of assets by the tansferee company to the shareholder of the
transferor company
c) Preference shares issued by the tansferee company to the preference shareholders of
the tansferor company

Accounts of holding companies/ parent company

1. Shareholders of the subsidiary who do not sell their shares to the holding company
are known as__________
a) Minority interest
b) Capital reserve
c) Goodwill
d) None of the above

2. Which of the folloung is excluded in consolidated balance sheet

a) Inter -company or mutual transaction must be eliminated
b) The share capitals of the holding company and its subsidiaries should never
be aggregated
c) The necessary revaluation of the assets must be carried out before
aggregating them
d) All of the above