ms4003_2024T3_Q1_NA.pdf
Financial Forensics · Quiz 1 · Sep 2024
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Questions and published explanations below are available without starting a test. Some questions may not have a published solution yet.
Question 197 MCQ · 1.0 marks
An owner of a business contributes ₹ 20,00,000 as capital. 30% of the amount was brought in cash
and the remaining was kept in a bank account in the name of the business. What would be the
total of assets in the Balance sheet?
6,00,000
14,00,000
20,00,000
None of these
A published solution is not available for this question yet.
Question 198 MCQ · 1.0 marks
Sold goods worth ₹ 86,000 for ₹ 98,000. A cash discount of 10% was offered to the customer if
payment is settled immediately. The customer took advantage of the offer and transferred the
amount immediately through internet banking. What will be the value of the sale?
86,000
98,000
77,400
88,200
A published solution is not available for this question yet.
Question 199 MCQ · 1.0 marks
Goods costing ₹ 19,000 was taken by the owner from business for personal use. The value of the
goods taken by the owner will be treated as __________ in the books of the company
Expenses
Income
Liability of the Company
Drawings by the owner
A published solution is not available for this question yet.
Question 200 MCQ · 1.0 marks
Issuing new shares of common stock would be classified under which category of cash flow?
Operating Activities
Investing Activities
Financing Activities
None of these
A published solution is not available for this question yet.
Question 201 MCQ · 1.0 marks
A company splits its stock in the ratio 1:10 to increase liquidity of the stock in the market. Under
which category in cash flow statement this activity will be classified?
Operations Activity
Investing Activity
Financing Activity
None of these
A published solution is not available for this question yet.
Question 202 MCQ · 1.0 marks
State Bank of India received INR 10,00,000 as interests on the loans that it gave to it's customers in
2022. How would this be categorised in the cash flow statment?
Cash from Financing
Cash flow from Investing
Cash flow from Operations
A published solution is not available for this question yet.
Question 203 MCQ · 1.0 marks
At the beginning of the month the company hired workers and employees for a total monthly
remuneration of ₹ 75,000 payable at the end of each month. How would this transaction reflect in
the income statement and balance sheet at the beginning of the month?
Expense will increase by ₹ 75,000 and liabilities will also increase by equal
amount
Expense will increase by ₹ 75000 and cash will decrease by the equal amount
There will be no effect on both the statements
Only expenses will increase by ₹ 75000
A published solution is not available for this question yet.
Question 204 NAT · 3.0 marks
Based on the following information for ABC Limited, compute the retained earnings of the
company.
[[IMAGE:67bb9013a726cd3e_4_1]]
A published solution is not available for this question yet.
Question 205 MSQ · 1.0 marks
A company sold goods worth $8,000 for $10,000 on Feb 2, 2024. 50% of it was paid by the
customer immediately via RTGS, and the remaining was promised to be paid by Mar 2, 2024 and
eventually paid off in April 2024. Which of the following statements are True based on this
information
Income statement prepared as for Q1 2024 would reflect the entire $10,000 as
income from the sale, although it's not fully realised in Q1.
Income statement prepared as for Q1 2024 would reflect only $5,000 as
income from sale, since only $5,000 was received in Q1.
When preparing the balance sheet as of end of Feb 2nd 2024, in the asset side
raw materials would have reduced by $8,000 and Bank balance would have increased by $5,000,
since only $5,000 was received in cash the remaining is pending
When preparing the balance sheet as of end of Feb 2nd 2024, in the asset side
raw materials would have reduced by $8,000 and Bank balance would have increased by $5,000
and a accounts receivables would increase by $5,000
A published solution is not available for this question yet.
Question 206 MSQ · 1.0 marks
Which of the following would result in increase in cash inflow for ABC Incorporation?
Decrease in account receivables
Increase in account receivables
Increase in account payables
Dividends received from the company's investment in PQR Limited.
A published solution is not available for this question yet.
Question 207 NAT · 1.0 marks
A company's net income for the year is $100,000. Depreciation expense is $20,000. Accounts
receivable increased by $10,000, and accounts payable increased by $5,000. What is the net cash
flow from operating activities?
A published solution is not available for this question yet.
Question 208 NAT · 1.0 marks
A company's beginning cash balance is $50,000. Its net cash flow from operating activities is
$30,000, from investing activities is -$20,000, and from financing activities is $10,000. What is the
ending cash balance?
A published solution is not available for this question yet.
Question 209 NAT · 2.0 marks
A company reports the following:
1.Net income: $85,000
2.Depreciation expense: $25,000
3.Gain on sale of equipment: $10,000
4.Loss on sale of investments: $5,000 Increase in accounts receivable: $8,000
Calculate the net cash flow from operating activities
A published solution is not available for this question yet.
Question 210 MCQ · 0.5 marks
Indicate the net effect on Assests, liabilities and owners equity resulting from each of the given
transactions
Based on the above data, answer the given subquestions.
Capital stock was issued for $100,000 cash
Assests increases, Liability increases
Assests increases, Owners equity increases
Assests decreases, Owners equity decreases
Assests decreases, Liability increases
The transaction does not have any impact.
A published solution is not available for this question yet.
Question 211 MCQ · 0.5 marks
Indicate the net effect on Assests, liabilities and owners equity resulting from each of the given
transactions
Based on the above data, answer the given subquestions.
Inventory was purchased for $15,900
Asset Increases, Liability increases
No change in Asset or Liability or Owners equity
Asset decreases, Liability decreases
Asset increases, Liability decreases
A published solution is not available for this question yet.
Question 212 MCQ · 0.5 marks
Indicate the net effect on Assests, liabilities and owners equity resulting from each of the given
transactions
Based on the above data, answer the given subquestions.
Inventory costing $4,500 was sold for $7,200 on credit
Asset increases and Liability increases
Asset decreases and Liability decreases
Asset increases and owners equity increases
No change
A published solution is not available for this question yet.
Question 213 MCQ · 0.5 marks
Indicate the net effect on Assests, liabilities and owners equity resulting from each of the given
transactions
Based on the above data, answer the given subquestions.
The company declared a stock split, and replaced each outstanding share with two new shares
Owners equity increases
Owners equity decreases
No change in Owners equity but asset decreases
No change in Owners equity but asset increases
A published solution is not available for this question yet.
Question 214 NAT · 1.0 marks
QED Electronics Company had the following transactions during April while conducting its
television and stereo repair business.
a. Parts with a cost of $1,600 were received and used during April.
b. Service revenue for the month was $33,400, but only $20,500 was cash sales.
c. Interest expense on loans outstanding was $880.
d. Wage costs for the month totaled $10,000; however, $1,400 of this had not yet been paid to the
employees.
e. Parts inventory from the beginning of the month was depleted by $2,100.
f. Utility bills totaling $1,500 were paid. $700 of this amount was associated with March’s
operations.
g. Depreciation expense was $2,700.
h. Selling expenses were $1,900.
i. A provision for income taxes was established at $2,800, of which $2,600 had been paid to the
federal government.
j. Administrative and miscellaneous expenses were recorded at $4,700
Based on the above data, answer the given subquestions.
Total expenses for the month of April is
A published solution is not available for this question yet.
Question 215 NAT · 1.0 marks
QED Electronics Company had the following transactions during April while conducting its
television and stereo repair business.
a. Parts with a cost of $1,600 were received and used during April.
b. Service revenue for the month was $33,400, but only $20,500 was cash sales.
c. Interest expense on loans outstanding was $880.
d. Wage costs for the month totaled $10,000; however, $1,400 of this had not yet been paid to the
employees.
e. Parts inventory from the beginning of the month was depleted by $2,100.
f. Utility bills totaling $1,500 were paid. $700 of this amount was associated with March’s
operations.
g. Depreciation expense was $2,700.
h. Selling expenses were $1,900.
i. A provision for income taxes was established at $2,800, of which $2,600 had been paid to the
federal government.
j. Administrative and miscellaneous expenses were recorded at $4,700
Based on the above data, answer the given subquestions.
Total Revenue for the month of April is
A published solution is not available for this question yet.
Question 216 NAT · 1.0 marks
QED Electronics Company had the following transactions during April while conducting its
television and stereo repair business.
a. Parts with a cost of $1,600 were received and used during April.
b. Service revenue for the month was $33,400, but only $20,500 was cash sales.
c. Interest expense on loans outstanding was $880.
d. Wage costs for the month totaled $10,000; however, $1,400 of this had not yet been paid to the
employees.
e. Parts inventory from the beginning of the month was depleted by $2,100.
f. Utility bills totaling $1,500 were paid. $700 of this amount was associated with March’s
operations.
g. Depreciation expense was $2,700.
h. Selling expenses were $1,900.
i. A provision for income taxes was established at $2,800, of which $2,600 had been paid to the
federal government.
j. Administrative and miscellaneous expenses were recorded at $4,700
Based on the above data, answer the given subquestions.
Net profit for the month of April is
A published solution is not available for this question yet.
Question 217 NAT · 2.0 marks
Based on the below financial statements of ABC limited, answer the given subquestions:
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[[IMAGE:67bb9013a726cd3e_11_3]]
What is the cash flow from operating activities.
A published solution is not available for this question yet.
Question 218 NAT · 1.0 marks
Based on the below financial statements of ABC limited, answer the given subquestions:
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[[IMAGE:67bb9013a726cd3e_11_3]]
What is the cash flow from investing activities
A published solution is not available for this question yet.
Question 219 NAT · 1.0 marks
Based on the below financial statements of ABC limited, answer the given subquestions:
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[[IMAGE:67bb9013a726cd3e_11_3]]
What is the cash flow from financing activities.
Hint: Retained Earnings (Ending) = Retained Earnings (Beginning) + Net Income - Dividends
A published solution is not available for this question yet.