In a cash flow statement, which one of the following would appear as an outflow of cash? Select one: a. An increase in debtors during the year. b. An increase creditor during the year. c. Depreciation charges on fixed assets. d. Loss on sale of a fixed asset.   12A credit balance on accruals account indicates? Select one: a. a liability and an expense owing. b. an asset and a prepayment of income. c. an asset and an accrual of income. d. a liability and an expense prepaid. 6ABC paid XYZ rent in advance for one year. By recording this payment ABC will reflect: Select one: a. An increase in assets and liabilities. b. An increase in assets and stockholder's equity. c. An increase in assets and decrease in liabilities. d. No change in total assets.   8Which of the following expenses will not be analyzed to administrative expenses in a published profit and loss account for a company? Select one: a. Bank charges and interest. b. Office expenses. c. General expenses. d. Managing Director Salary. 15When shares are issued at a premium, the value of the share premium should be: Select one: a. Taken to the profit and loss account b. Shown under current liabilities in the balance sheet. c. Shown under capital & reserves in the balance sheet. d. Taken to the trading account. 19At January 1, year 1, a sole proprietorship's assets totaled 210,000, and its liabilities amounted to 120,000. During year 1, owner investments amounted to 72,000, and owner withdrawals totaled 75,000. At December 3 I, year 1, assets totaled 270,000, and liabilities amounted to 171,000. The amount of net profit for year 1 was Select one: a. 0 b. 6,000 c. 9,000 d. 12,000 23Which one of the following is capital expenditure? Select one: a. repairs to motor vehicles. b. goods taken by owner for own use. c. cost of raw materials used in extending the premises. d. renewing the electrical wiring in the office.   24For the ratio Return on Capital Employed, which of the following best describes capital employed? Select one: a. Share capital. b. Share capital + Reserves. c. Share capital + Current Assets. d. Share capital + Fixed Assets. 28Which of the following best explains what is meant by “capital expenditure”?   Capital expenditure is expenditure Select one: a. relating to the acquisition or improvement of non current assets. b. relating to the issue of share capital. c. on non current assets, including repairs and maintenance. d. on expensive assets. 32The gross profit can be calculated using which of the following: Select one: a. Net profit – purchases b. Sales – direct expenses c. Sales – Cost of sales d. Net assets + Current Assets – Current Liabilities

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter15: Statement Of Cash Flows
Section: Chapter Questions
Problem 4E
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11In a cash flow statement, which one of the following would appear as an outflow of cash?

Select one:

a. An increase in debtors during the year.

b. An increase creditor during the year.

c. Depreciation charges on fixed assets.

d. Loss on sale of a fixed asset.

 

12A credit balance on accruals account indicates?

Select one:

a. a liability and an expense owing.

b. an asset and a prepayment of income.

c. an asset and an accrual of income.

d. a liability and an expense prepaid.

6ABC paid XYZ rent in advance for one year. By recording this payment ABC will reflect:

Select one:

a. An increase in assets and liabilities.

b. An increase in assets and stockholder's equity.

c. An increase in assets and decrease in liabilities.

d. No change in total assets.

 

8Which of the following expenses will not be analyzed to administrative expenses in a published profit and loss account for a company?

Select one:

a. Bank charges and interest.

b. Office expenses.

c. General expenses.

d. Managing Director Salary.

15When shares are issued at a premium, the value of the share premium should be:

Select one:

a. Taken to the profit and loss account

b. Shown under current liabilities in the balance sheet.

c. Shown under capital & reserves in the balance sheet.

d. Taken to the trading account.

19At January 1, year 1, a sole proprietorship's assets totaled 210,000, and its liabilities amounted to 120,000. During year 1, owner investments amounted to 72,000, and owner withdrawals totaled 75,000. At December 3 I, year 1, assets totaled 270,000, and liabilities amounted to 171,000. The amount of net profit for year 1 was

Select one:

a. 0

b. 6,000

c. 9,000

d. 12,000

23Which one of the following is capital expenditure?

Select one:

a. repairs to motor vehicles.

b. goods taken by owner for own use.

c. cost of raw materials used in extending the premises.

d. renewing the electrical wiring in the office.

 

24For the ratio Return on Capital Employed, which of the following best describes capital employed?

Select one:

a. Share capital.

b. Share capital + Reserves.

c. Share capital + Current Assets.

d. Share capital + Fixed Assets.

28Which of the following best explains what is meant by “capital expenditure”?

 

Capital expenditure is expenditure

Select one:

a. relating to the acquisition or improvement of non current assets.

b. relating to the issue of share capital.

c. on non current assets, including repairs and maintenance.

d. on expensive assets.

32The gross profit can be calculated using which of the following:

Select one:

a. Net profit – purchases

b. Sales – direct expenses

c. Sales – Cost of sales

d. Net assets + Current Assets – Current Liabilities

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