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State true or false with reason. Dividend paid is not a source of fund - Book Keeping and Accountancy

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प्रश्न

State true or false with reason.

Dividend paid is not a source of fund

विकल्प

  • True

  • False

MCQ
सत्य या असत्य
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उत्तर

This statement is True.

Dividend is always paid on shares issued by a company is an expense. Shares itself is a source of fund. In payment of dividend cash goes out from the company. It is an out flow of cash and not a source of fund.

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अध्याय 9: Analysis of Financial Statements - Exercise 9.1 (Objective Questions) [पृष्ठ ३७६]

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बालभारती Book-Keeping and Accountancy [English] Standard 12 Maharashtra State Board
अध्याय 9 Analysis of Financial Statements
Exercise 9.1 (Objective Questions) | Q C. 4. | पृष्ठ ३७६

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संबंधित प्रश्न

Give one word/term/phrase for the following statement.

An asset which can be converted into cash immediately.


Balance sheet is a nominal account.


State the objectives of financial statements from the view point of a business concern.


What do you mean by Analysis of Financial Statement?


One of the objectives of ‘Financial Statements Analysis’ is to identify the reasons for change in the financial position of the enterprise, State two more objectives of this analysis.


State any one limitation of Analysis of Financial Statement.


JW Ltd. was a company manufacturing geysers. As a part of its long-term goal for an expansion, the company decided to identify the opportunity in rural areas. The initial plan was rolled out for Bhiwani village in Haryana. Since the village did not have a regular supply of electricity, the company decided to manufacture solar geysers. The core team consisting of the Regional Manager, Accountant and the Marketing Manager was taken from the Head Office and the remaining employees were selected from the village and neighbourhood areas. At the time of preparation of financial statements, the accountant of the company fell sick and the company debuted a junior accountant temporarily from the village for two months. The Balance Sheet prepared by the junior accountant showed the following items against the Major Heads and Sub-heads mentioned which were not as per Schedule III of the Companies Act, 2013.

Items Major Head/Sub-Head
Loose Tools Trade Receivables
Cheques in Hand Current Investments
Term Loan from Bank Other Long-term Liabilities
Computer Software Tangible Fixed Assets

Identify any two values that the company wants to communicate to the society. Also, present the above items under the correct major heads and sub-heads as per Schedule III of the Companies Act, 2013.


State and explain any 'four objectives' of financial statement analysis from the business point of view.


Government is not interested in the analysis of financial statement.

State the significance of Analysis of Financial Statements to the ‘Lenders’.


State and explain any 'four objectives' of analysis of financial statement from a business concern's point of view.


State whether following statement is true or false :
Analysis of financial statement is a tool but not a remedy.


State whether following statement is true or false :
Government is not interested in analysis of financial statement.


Select the appropriate answer from the alternatives given below & rewrite the completed statement:
The methodical classification of financial statement is called _____________.


Select the appropriate answer from the alternatives given below & rewrite the completed statement
Bills payable is _____________.


Give one word/term/ phrase for the following statement
Critical evaluation of financial statement to measure profitability.


Answer the following in brief :
What do you mean by analysis of financial statements?

 

What is ‘analysis’ of financial statement?


Give one word/term/phrase for the following statement.

Statement showing changes in cash and cash equivalent during a particular period.


State true or false with reason.

Financial Statement includes only Balance Sheet.


State true or false with reason.

The short term deposits are considered as cash equivalent.


State true or false with reason.

Ratio analysis measures profitability efficiency and financial soundness of the business.


Answer in one sentence only.

Give any three examples of current assets?


Which of the following are not tools of Financial Analysis?

  1. Cash Flow Statement
  2. Income Statement
  3. Balance Sheet
  4. Ratio Analysis

Convert the following Trading and Profit and Loss Account into Vertical Income Statement:

Dr. Trading, Profit and Loss Account
(for the year ended 31st March, 2020) 
Cr.
Particulars Amount
(₹)
Particulars Amount
(₹)
To Opening stock 50,000 By Sales 6,00,000
To Purchases 4,50,000 By Closing Stock 1,50,000
To Carriage 20,000    
To Direct expenses 30,000    
To Wages 50,000    
To Gross Profit c/d 1,50,000    
Total 7,50,000   7,50,000
To Office expenses 62,500 By Gross Profit b/d 1,50,000
To Finance expenses 15,000    
To Selling expenses 50,000    
To Net Profit c/d 22,500    
Total 1,50,000   1,50,000

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