MANAGENT ACCOUNTING Question And Answers
- What is meant by fund?
Answer:- A fund is a source of money that is allocated for a specific purpose.
- Give five examples for noncurrent assets.
Answer:- Noncurrent assets like machinery, land , buildings, furniture, fittings.
- Give five examples for non current liability.
Answer:- Noncurrent liabilities include debentures, long-term loans, tax payable, long term lease obligations, deferred compensation, and deferred revenue.
- Mention two transactions involving flow of fund.
Answer:-
1.Issue of shares for cash.
- Issue of debentures for cash.
- Raising of long-term loans.
- Sale of fixed assets on cash or credit.
- Sale of trade investments.
- Mention two transactions involving no flow of fund.
- Cash collected from debtors.
- Bills receivables realized.
- Cash paid to creditors.
- Payment or discharge of bills payable.
- Issued bills payable to trade creditors.
- What is the impact of issue of shares in fund flow statement?
Issue of shares will result in source of fund in fund flow statement.
- What is the impact of issue of debentures in fund flow statement?
Answer:- Issue of debentures will result in source of fund in fund flow statement.
- What is the impact of issue of bonus shares in fund flow statement?
Answer:- There will not be any impact in fund flow statement due to issue of bonus shares as there is no fund flow.
- What is the impact of redemption of shares in fund flow statement?
Answer:- Redemption of shares will result in application of fund in fund flow statement.
- What is the impact of redemption of debentures in fund flow statement?
Answer:- Redemption of debentures will result in application of fund in fund flow statement.
