{"id":54455,"date":"2024-04-16T00:10:28","date_gmt":"2024-04-16T00:10:28","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=54455"},"modified":"2024-04-16T00:10:28","modified_gmt":"2024-04-16T00:10:28","slug":"net-loss-rs-20000-depreciation-on-machinery-rs-50000-amortisation-of-goodwill-rs-5000-loss-on-the-sale-of-old-furniture-rs-3500-profit-on-the-sale-of-land-rs-8500-funds-from-operation-are","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/net-loss-rs-20000-depreciation-on-machinery-rs-50000-amortisation-of-goodwill-rs-5000-loss-on-the-sale-of-old-furniture-rs-3500-profit-on-the-sale-of-land-rs-8500-funds-from-operation-are\/","title":{"rendered":"Net loss Rs. 20,000 Depreciation on Machinery Rs. 50,000 Amortisation of goodwill Rs. 5,000 Loss on the sale of old furniture Rs. 3,500 Profit on the sale of land Rs. 8,500 Funds from operation are"},"content":{"rendered":"<p>\r\n    <!-- Check if it's an AMP page -->\r\n            <!-- Non-AMP version -->\r\n        <div class=\"mcq-container\" data-quiz-id=\"quizState_6a9790f7072ac\">\r\n                                            <div class=\"option\" data-option-key=\"option1\" data-is-correct=\"false\">\r\n                    Rs. 25,000                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option2\" data-is-correct=\"false\">\r\n                    Rs. 30,000                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option3\" data-is-correct=\"true\">\r\n                    Rs. 32,000                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option4\" data-is-correct=\"false\">\r\n                    Rs. 36,500                <\/div>\r\n                            \r\n            <!-- Feedback messages for non-AMP -->\r\n            <div class=\"feedback\" data-feedback=\"wrong\">Answer is Right!<\/div>\r\n            <div class=\"feedback\" data-feedback=\"right\">Answer is Wrong!<\/div>\r\n        <\/div>\r\n\r\n        <script>\r\n        document.addEventListener('DOMContentLoaded', function () {\r\n            var containers = document.querySelectorAll('.mcq-container');\r\n\r\n            containers.forEach(function(container) {\r\n                var options = container.querySelectorAll('.option');\r\n                var feedbackSelect = container.querySelector('[data-feedback=\"select\"]');\r\n                var feedbackWrong = container.querySelector('[data-feedback=\"wrong\"]');\r\n                var feedbackRight = container.querySelector('[data-feedback=\"right\"]');\r\n\r\n                options.forEach(function(option) {\r\n                    option.addEventListener('click', function() {\r\n                        var selectedOption = option.getAttribute('data-option-key');\r\n                        var isCorrect = option.getAttribute('data-is-correct') === 'true';\r\n\r\n                        \/\/ Remove previous selections\r\n                        options.forEach(function(opt) {\r\n                            opt.classList.remove('correct', 'incorrect');\r\n                        });\r\n\r\n                        \/\/ Add the correct\/incorrect class\r\n                        if (isCorrect) {\r\n                            option.classList.add('correct');\r\n                            feedbackRight.hidden = false;\r\n                            feedbackWrong.hidden = true;\r\n                        } else {\r\n                            option.classList.add('incorrect');\r\n                            feedbackRight.hidden = true;\r\n                            feedbackWrong.hidden = false;\r\n                        }\r\n\r\n                        \/\/ Hide select feedback\r\n                        feedbackSelect.hidden = true;\r\n                    });\r\n                });\r\n            });\r\n        });\r\n        <\/script>\r\n    \r\n    <!--more--><\/p>\n<p>The correct answer is: <strong>C. Rs. 32,000<\/strong><\/p>\n<p>Funds from operations (FFO) is a measure of a company&#8217;s cash flow from its operating activities. It is calculated by adding net income to depreciation and amortization, and then subtracting any gains or losses from the sale <div class=\"telegram-channel-container\">\r\n        <a href=\"https:\/\/t.me\/pscnotes2025\" target=\"_blank\" class=\"telegram-channel-button\">\r\n            <span class=\"telegram-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 496 512\">\r\n                    <path fill=\"white\" d=\"M248,8C111,8,0,119,0,256s111,248,248,248s248-111,248-248S385,8,248,8z M362,177L320,367c-3,14-10,18-20,14l-56-41l-27,26 c-3,3-5,5-10,5l4-63L323,196c5-5-1-7-8-3l-98,62l-42-13c-9-3-10-9,2-14l162-63C351,160,365,164,362,177z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Join Our Telegram Channel\r\n        <\/a>\r\n    <\/div> of assets.<\/p>\n<p>In this case, net income is -Rs. 20,000, depreciation on machinery is Rs. 50,000, amortization of goodwill is Rs. 5,000, loss on the sale of old furniture is Rs. 3,500, and profit on the sale of land is Rs. 8,500. Therefore, funds from operations are calculated as follows:<\/p>\n<p>FFO = -Rs. 20,000 + Rs. 50,000 + Rs. 5,000 &#8211; Rs. 3,500 + Rs. 8,500 = Rs. 32,000<\/p>\n<p>The other options are incorrect because they do not take into account all of the relevant information. Option A, Rs. 25,000, does not include the depreciation on machinery. Option B, Rs. 30,000, does not include the amortization <div class=\"youtube-subscribe-container\">\r\n        <a href=\"https:\/\/www.youtube.com\/channel\/UCNHT8lW-JmLC68rjBfZhdkg?sub_confirmation=1\" target=\"_blank\" class=\"youtube-subscribe-button\">\r\n            <span class=\"youtube-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 576 512\">\r\n                    <path d=\"M549.7 124.1c-6.3-23.7-24.8-42.3-48.3-48.6C458.8 64 288 64 288 64S117.2 64 74.6 75.5c-23.5 6.3-42 24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Subscribe on YouTube\r\n        <\/a>\r\n    <\/div> of goodwill. Option D, Rs. 36,500, includes the gain on the sale of land, which is not a cash flow from operations.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Subscribe on YouTube<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Net loss Rs. 20,000 Depreciation on Machinery Rs. 50,000 Amortisation of goodwill Rs. 5,000 Loss on the sale of old furniture Rs. 3,500 Profit on the sale of land Rs. 8,500 Funds from operation are<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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