ACC311
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1. The following is not one of the advantages of cash flow statement
Statement of financial position
It provides a better platform to compare the result of different companies
Journal of a company depends on its ability to generate cash
Forecasts can be monitored using variance statement which companies actual cash flow against the forecast
2. The following is not an objective of financial statement
Know the earning potentials of an enterprise
Providing financial independence – Answer
Changes in noteworthy
To be provided with reliable facts & figures about economic resources and also the obligations that an enterprise has to undertake.
3. The benefit of bond is that
The coupon/interest income from the saving bond are tax free
It discourages financial inclusion
It offers guaranteed returns – Answer
none of the options
4. The following is not one of the contents of memorandum of association
The name of the company, followed by the word limited
The domicile of the company (i.e where its registered office is situated)
The object of the company
The staff strength – Answer
5. A document containing the dos and don’ts of partnership business is called
Partnership Agreement
Partnership Deed – Answer
Partnership Association
none of the options
6. The following is not one of the prices of shares
Open prices – Answer
Nominal price
Premium Price
Discount Price
7. Equity financing means
Money borrowed on fair (equity) basis
Borrowed money that is paid back as interest
Project financed equitably
Money that stays in the business as ownership interest – Answer
8. The following is not a type of preference share
Cumulative preference share
Participating preference shares
Dividend preference share – Answer
Redeemable preference shares
9. Capital gains tax means
Taxes on debentures
Taxes on dividends
Taxes on indirect goods
All gains accruing to a taxpayer from the sale or lease or other transfers – Answer
10. V.A.T means
Various Advertisement Techniques
Value added transaction
Value added tax – Answer
Value and Treasury
