# MGT201 Quiz 1 Solution and Discussion

• Identify that which of the following allows depicting graphically the timing of cash flows along with its nature, as either inflows or outflows?

Cash flow diagram
Cash flow diagram
Cash flow diagram
Cash flow diagram

• The value of cost of Goods Sold varies because of:

LIFO method of inventory recording
FIFO method of inventory recording
Double declining method of depreciation
All of the given options

• The ____________ presents a company’s financial position at the specified date.

Income statement
Balance sheet
Statement of shareholders’ equity
Statement of cash Flows

• Which of the following is NOT the step of Percentage of sales to be used in Financial Forecasting?

Estimate year-by-year Sales Revenue and Expenses
Estimate Levels of Investment Needs required to Meet Estimated Sales
Estimate the Financing Needs
Estimate the Financing Needs

• Suppose Ali has deposited Rs. 5,000 in bank account for which bank has promised to pay him 10% interest compounded annually. Ali will have ____ in the account after 1 year.

an amount more than Rs. 5,000
an amount less than Rs. 5,000
an amount equal to Rs. 5,000
None of the given options

• Which of the following rule is applied in constant rupee approach of balance sheet?

Constant Rupee Approach: In constant rupee approach, two balance sheets of the same company for different times are compared at a specific time and inflationary adjustments are made.
The balance sheet must follow the following formula:

Assets = Liabilities + Shareholders’ Equity

• Which of the following rule is applied in constant rupee approach of balance sheet?

Two balance sheets of the same company for different times are compared at a specific time and inflationary adjustments are made

Two balance sheets of different companies for different times are compared at a specific time and inflationary adjustments are made

Two balance sheets of the same company for different times are compared at a specific time and regulatory adjustments are made

Two balance sheets of the same company for different times are compared at a specific time and regulatory adjustments are made

• Dear Students,

This is to inform that Quiz # 01 will be opened on November 20, 2020 and last date to attempt quiz will be November 24, 2020 .

Quiz will be based on Multiple Choice Questions (MCQs) covering video Lectures 1 to 7.

If you failed to attempt the quiz in given time then no re-take or off line quiz will be held as compensation/replacement.

For detailed instructions view instruction in quiz tab.

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