Which of the following is shown under the heading “Shareholders’ Funds” in the Balance Sheet of a company?

• (A) Trade Payables
• (B) Short-term Borrowings
• (C) Reserves and Surplus
• (D) Outstanding Expenses

Interest received by a finance company is classified under which activity in Cash Flow Statement?

• (A) Operating Activity
• (B) Investing Activity
• (C) Financing Activity
• (D) Extraordinary Activity

At the time of forfeiture of shares originally issued at premium, Securities Premium Account is:

• (A) Credited
• (B) Debited only if premium is unpaid
• (C) Always debited
• (D) Not affected

Which of the following is treated as a non-current asset in the Balance Sheet?

• (A) Cash in Hand
• (B) Bank Overdraft
• (C) Furniture
• (D) Bills Payable

Debentures are shown under which head in the Balance Sheet of a company?

• (A) Shareholders’ Funds
• (B) Current Liabilities
• (C) Non-current Liabilities
• (D) Current Assets

Purchase of machinery for cash will result in:

• (A) Increase in Operating Activities
• (B) Increase in Investing Activities
• (C) Increase in Financing Activities
• (D) No effect on Cash Flow Statement

The amount received over and above face value of shares is called:

• (A) Discount on Issue of Shares
• (B) Calls in Arrears
• (C) Securities Premium
• (D) Capital Reserve

Cash deposited into bank is classified as:

• (A) Cash Flow from Operating Activities
• (B) Cash Flow from Financing Activities
• (C) Cash Flow from Investing Activities
• (D) Not shown in Cash Flow Statement

Which of the following is an extraordinary item in Cash Flow Statement?

• (A) Sale of Goods
• (B) Salary Paid
• (C) Compensation received from earthquake loss
• (D) Interest Paid

Which account is credited at the time of reissue of forfeited shares?

• (A) Share Capital Account
• (B) Bank Account
• (C) Share Forfeiture Account
• (D) Calls in Arrears Account