Financial Analysis and Cash Flow Quiz

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When a partner retires from a firm with the consent of all other partners, what account is prepared?

Realisation Account

Partner Executor Account (correct)

Profit and Loss Account

Bank Account

What happens to the cash-in-hand of a firm on dissolution?

Transferred to Realisation Account (correct)

Transferred to Profit and Loss Account

Deposited in a Bank Account

None of the above

In the event of compulsory dissolution of a firm, what happens to its bank overdraft?

Transferred to Realisation Account

Written off as a loss

Repayment from the assets realized (correct)

None of the above

Why do we calculate Gaining Ratio?

To determine the new profit-sharing ratio of partners Signup and view all the answers

In accounting, when a firm disposes of its fixed assets, the difference between the disposal proceeds and the carrying amount of the asset is known as:

Profit on Sale of Asset Signup and view all the answers

In financial analysis, what does the term 'interpretation' refer to?

Explaining the meaning of financial ratios Signup and view all the answers

When analyzing a firm's cash flow statement, if there is a bank overdraft, how is it typically classified?

Financing Activity Signup and view all the answers

When a company issues debentures, it is essentially:

Borrowing funds from investors Signup and view all the answers

Which of the following is NOT a tool of financial analysis?

Capital Budgeting Techniques Signup and view all the answers

When a fixed asset with a book value of ₹1,20,000 is sold at a loss of ₹40,000, what is the impact on cash flow?

Cash outflow of ₹40,000 Signup and view all the answers

In the context of corporate finance, what happens when shares are forfeited by shareholders?

Retained earnings decrease Signup and view all the answers

When shares are forfeited due to non-payment and then reissued as fully paid, what accounting treatment is needed?

Crediting reissue account Signup and view all the answers

Financial Analysis and Cash Flow Quiz

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