Measurement and disclosure do not apply to which of the following? a) Leasing based transactions b) Net realizable values/Impairment of Assets c) Share based payments d) Price received to sell or buy an asset

Measurement and disclosure do not apply to which of the following?
a) Leasing based transactions
b) Net realizable values/Impairment of Assets
c) Share based payments
d) Price received to sell or buy an asset
by

1 Answer

Answer :

d) Price received to sell or buy an asset
by

Related questions

Relief-from-royalty method estimates the value an asset based on the value of the royalty payments __________. a) from which the company is relieved due to its ownership of the asset b) made by the company to acquire ownership of the asset c) received by the company from the useful life of the asset d) over and above the internal rate of return

Description : Relief-from-royalty method estimates the value an asset based on the value of the royalty payments __________. a) from which the company is relieved due to its ownership of the asset b) made by the ... by the company from the useful life of the asset d) over and above the internal rate of return

Last Answer : a) from which the company is relieved due to its ownership of the asset

Which of the following is an asset pricing model based on the ideas that an asset’s returns can be predicted using the relationship between that asset and many common risk factors? a) Arbitrage pricing theory b) Arbitrage risk theory c) Arbitrage asset theory d) Risk pricing theory

Description : Which of the following is an asset pricing model based on the ideas that an asset’s returns can be predicted using the relationship between that asset and many common risk factors? a) Arbitrage pricing theory b) Arbitrage risk theory c) Arbitrage asset theory d) Risk pricing theory

Last Answer : a) Arbitrage pricing theory

Which of the following valuation methods would most likely not be used for business valuation? a) Discounted Cash Flow b) Net Assets Method c) Multi-period Excess Earning Method d) Industry Price Earnings Ratio

Description : Which of the following valuation methods would most likely not be used for business valuation? a) Discounted Cash Flow b) Net Assets Method c) Multi-period Excess Earning Method d) Industry Price Earnings Ratio

Last Answer : c) Rs.200 crore

Which of the following is not a prescribed asset class under the Companies (Registered Valuers and Valuation) Rules, 2017? a) Enterprise b) Securities or Financial Assets c) Plant and Machinery d) Land and Buildings

Description : Which of the following is not a prescribed asset class under the Companies (Registered Valuers and Valuation) Rules, 2017? a) Enterprise b) Securities or Financial Assets c) Plant and Machinery d) Land and Buildings

Last Answer : a) Enterprise

Historical cost concept requires the valuation of an asset at A] Original cost B] Replacement value C] Net realizable value D] Market value

Description : Historical cost concept requires the valuation of an asset at A] Original cost B] Replacement value C] Net realizable value D] Market value

Last Answer : A] Original cost

The term _________ refers financial investment in highly risky and growth oriented venture with the objective of earning a high rate of retune.(a) Venture capital)Merchant banking c)leasing)

Description : The term _________ refers financial investment in highly risky and growth oriented venture with the objective of earning a high rate of retune.(a) Venture capital)Merchant banking c)leasing)

Last Answer : (a) Venture

In __________ leasing, the risk of obsolescence is assumed by the lessee.(a)Financial lease b) Operational lease c) both )

Description : In __________ leasing, the risk of obsolescence is assumed by the lessee.(a)Financial lease b) Operational lease c) both )

Last Answer : (a)Financial lease

Which of the following methods is included in ‘Asset based approach’ (cost-based approach)? a) Comparable Companies’ Multiple Method b) Replacement Method c) Earnings Capitalization Method d) Discounted Cash Flow Method

Description : Which of the following methods is included in ‘Asset based approach’ (cost-based approach)? a) Comparable Companies’ Multiple Method b) Replacement Method c) Earnings Capitalization Method d) Discounted Cash Flow Method

Last Answer : b) Replacement Method

Under the SEBI (Share Based Employee Benefits) Regulations, 2014, appreciation means the difference between the ______________. a) market price of the share of a company on the date of exercise of stock appreciation right (SAR) or vesting of SAR, as the case may be, and the SAR price. b) face value of the share of a company on the date of exercise of stock appreciation right (SAR) and vesting of SAR, as the case may be, and the SAR price. c) market price of the share of a company on the date of exercise of share appreciation right (SAR) and the SAR price. d) face value of the share of a company on the date of exercise of share appreciation right (SAR) and the SAR price.

Description : Under the SEBI (Share Based Employee Benefits) Regulations, 2014, appreciation means the difference between the ______________. a) market price of the share of a company on the date of exercise of stock ... a company on the date of exercise of share appreciation right (SAR) and the SAR price.

Last Answer : market price of the share of a company on the date of exercise of stock appreciation right (SAR) or vesting of SAR, as the case may be, and the SAR price.

Value of a firm is usually based on ________. a) the value of debt and equity b) the value of assets and liabilities c) the value of debt d) the value of equity

Description : Value of a firm is usually based on ________. a) the value of debt and equity b) the value of assets and liabilities c) the value of debt d) the value of equity

Last Answer : d) the value of equity

When an investor uses a derivative instrument to reduce his exposure to the price volatility of certain underlying assets, he is said to be _______. a) speculating b) squaring c) hedging d) arbitraging

Description : When an investor uses a derivative instrument to reduce his exposure to the price volatility of certain underlying assets, he is said to be _______. a) speculating b) squaring c) hedging d) arbitraging

Last Answer : c) hedging

There are two income-based approaches that are primarily used when valuing a business, the Capitalization of Cash Flow Method and the ___________. a) Net Present Value Method b) IRR Method c) Discounted Cash Flow Method d) Discounted Payback Period

Description : There are two income-based approaches that are primarily used when valuing a business, the Capitalization of Cash Flow Method and the ___________. a) Net Present Value Method b) IRR Method c) Discounted Cash Flow Method d) Discounted Payback Period

Last Answer : c) Discounted Cash Flow Method

The exemption under section 54 of the Income Tax Act, 1961 is available ___________. e) to the extent of capital gain invested in the house property f) proportionate to the net consideration price invested g) to the extent of amount actually invested h) to the extent of net consideration

Description : The exemption under section 54 of the Income Tax Act, 1961 is available ___________. e) to the extent of capital gain invested in the house property f) proportionate to the net consideration price invested g) to the extent of amount actually invested h) to the extent of net consideration

Last Answer : to the extent of capital gain invested in the house property

Gross assets are Rs.1,01,000, fictitious assets Rs.350 are included in the gross assets. External liabilities are Rs.7,500. 6% prefer share capital is Rs.45,000. Equity capital is 4,500 equity shares of Rs.10 each fully paid. Average expected profit is Rs.8,500. Transfer to reserves is 10%. Pref. dividend is payable. NRR is 9%. The Net Asset Value Per share is A Rs.11 B Rs.10.70 C Rs.15 D Rs.20s

Description : Gross assets are Rs.1,01,000, fictitious assets Rs.350 are included in the gross assets. External liabilities are Rs.7,500. 6% prefer share capital is Rs.45,000. Equity capital is 4,500 equity shares of Rs.10 each fully ... . The Net Asset Value Per share is A Rs.11 B Rs.10.70 C Rs.15 D Rs.20

Last Answer : Rs.10.70

The ratio that shows the relationship between fixed asset to share holders fund a) Fixed asset to net worth b) Fixed asset ratio c) Fixed assets turn over ratio d) Net worth ratio

Description : The ratio that shows the relationship between fixed asset to share holders fund a) Fixed asset to net worth b) Fixed asset ratio c) Fixed assets turn over ratio d) Net worth ratio

Last Answer : a) Fixed asset to net worth

What is an intangible asset? a) Non-monetary asset with physical substance b) Monetary asset without physical substance c) Non-monetary asset without physical substance d) Monetary asset with physical substance

Description : What is an intangible asset? a) Non-monetary asset with physical substance b) Monetary asset without physical substance c) Non-monetary asset without physical substance d) Monetary asset with physical substance

Last Answer : c) Non-monetary asset without physical substance

Which principle tells us that an investor will not invest in an asset if a more attractive substitute exists? a) Principle of alternative b) Principle of expectation c) Principle of substitution d) Principle of risk and return

Description : Which principle tells us that an investor will not invest in an asset if a more attractive substitute exists? a) Principle of alternative b) Principle of expectation c) Principle of substitution d) Principle of risk and return

Last Answer : c) Principle of substitution

A perpetual bond does not have a fixed _________. a) interest rate b) maturity period c) duration d) underlying asset

Description : A perpetual bond does not have a fixed _________. a) interest rate b) maturity period c) duration d) underlying asset

Last Answer : b) maturity period

An asset is officially appraised and a) verification date b) valuation date c) report date d) effective date priced on _____.

Description : An asset is officially appraised and priced on _____. a) verification date b) valuation date c) report date d) effective date

Last Answer : b) valuation date

How is stamp duty paid in transactions where more than one instrument is required? a) Stamp Duty is paid on all the instruments equally b) Stamp Duty is paid on any one of the instrument c) Stamp duty is paid only on one of the principal instruments and on the balance documents only minimum duty is payable d) Stamp duty is paid on ad valorem basis

Description : How is stamp duty paid in transactions where more than one instrument is required? a) Stamp Duty is paid on all the instruments equally b) Stamp Duty is paid on any one of the instrument c) Stamp ... and on the balance documents only minimum duty is payable d) Stamp duty is paid on ad valorem basis

Last Answer : c) Stamp duty is paid only on one of the principal instruments and on the balance documents only minimum duty is payable

A set of complex and closely connected instructions, agents, practices, markets transactions, claims and liabilities relating to financial aspects of an economy is referred as: _____. a. Financial system b. Financial market c. Financial institution

Description : A set of complex and closely connected instructions, agents, practices, markets transactions, claims and liabilities relating to financial aspects of an economy is referred as: _____. a. Financial system b. Financial market c. Financial institution

Last Answer : a. Financial system

What is the relation between fiscal deficit (FD) and primary deficit (PD)? a) PD = FD - Depreciation b) PD = FD - Interest payments c) FD = PD - Interest payments d) FD = PD - Depreciation

Description : What is the relation between fiscal deficit (FD) and primary deficit (PD)? a) PD = FD - Depreciation b) PD = FD - Interest payments c) FD = PD - Interest payments d) FD = PD - Depreciation

Last Answer : PD = FD - Interest payments

Valuation of stock in accounting follows the principle of cost price or ____ which ever is lower. a) Market Price b) Average Price c) Net realizable Value d) None of these.

Description : Valuation of stock in accounting follows the principle of cost price or ____ which ever is lower. a) Market Price b) Average Price c) Net realizable Value d) None of these.

Last Answer : c) Net realizable Value

Which one of the following statements is correct concerning the weighted average cost of capital (WACC)? a) The WACC may decrease as a firm's debt-equity ratio increases. b) In the computation of WACC, weight assigned to the preferred stock is based on the coupon rate multiplied by the par value of the stock. c) A firm's WACC will decrease as the corporate tax rate decreases. d) The weight of the common stock used in the computation of the WACC is based on the number of shares outstanding multiplied by the book value per share.

Description : Which one of the following statements is correct concerning the weighted average cost of capital (WACC)? a) The WACC may decrease as a firm's debt-equity ratio increases. b) In the computation of ... of the WACC is based on the number of shares outstanding multiplied by the book value per share.

Last Answer : a) The WACC may decrease as a firm's debt-equity ratio increases.

Karan bought 1000 share of ABC Limited at Rs.910 through his broker excluding brokerage and taxes. However, the current market price of that share is Rs.915. Here, the amount of Rs.915 reflects ____________. a) value of share b) cost of investment c) investment value d) price of transaction

Description : Karan bought 1000 share of ABC Limited at Rs.910 through his broker excluding brokerage and taxes. However, the current market price of that share is Rs.915. Here, the amount of Rs.915 reflects ____________. a) value of share b) cost of investment c) investment value d) price of transaction

Last Answer : a) value of share

According to RBI Guidelines on Sale of Stressed Assets by Banks, identification of stressed assets beyond a specified value, as may be determined by bank’s policy, for sale is ___________. a) Top-down b) Bottom–top c) Horizontal d) Vertical

Description : According to RBI Guidelines on Sale of Stressed Assets by Banks, identification of stressed assets beyond a specified value, as may be determined by bank’s policy, for sale is ___________. a) Top-down b) Bottom–top c) Horizontal d) Vertical

Last Answer : a) Top-down

Which of the following method would you consider appropriate while valuing the intangible assets? a) Multiple b) Relative c) Consistent d) Exclusive

Description : Which of the following method would you consider appropriate while valuing the intangible assets? a) Multiple b) Relative c) Consistent d) Exclusive

Last Answer : b) Relative

Individuals hold their claims on real assets through ____________ in a well-developed economy. a) intangible assets b) tangible assets c) real estate d) financial assets

Description : Individuals hold their claims on real assets through ____________ in a well-developed economy. a) intangible assets b) tangible assets c) real estate d) financial assets

Last Answer : d) financial assets

Under the Insolvency and Bankruptcy Code, 2016, the fees of the liquidator is paid from the proceeds of sale of the ____________of the corporate debtor. a) unencumbered liabilities b) liquidation assets c) liquidation fund d) unencumbered reserves

Description : Under the Insolvency and Bankruptcy Code, 2016, the fees of the liquidator is paid from the proceeds of sale of the ____________of the corporate debtor. a) unencumbered liabilities b) liquidation assets c) liquidation fund d) unencumbered reserves

Last Answer : b) liquidation assets

Which of the following is not a cash inflow? a) Decrease in debtors b) Issue of shares c) Decrease in creditors d) Sale of fixed assets

Description : Which of the following is not a cash inflow? a) Decrease in debtors b) Issue of shares c) Decrease in creditors d) Sale of fixed assets

Last Answer : c) Decrease in creditors

. If debt equity ratio is 3:1; the amount of total assets are Rs.20 lakh; current ratio is 1.5:1 and owned funds are Rs.3 lakh. What is the amount of current assets? a) Rs.5 lakh b) Rs.3 lakh c) Rs.12 lakh d) Rs.15 lakh

Description : . If debt equity ratio is 3:1; the amount of total assets are Rs.20 lakh; current ratio is 1.5:1 and owned funds are Rs.3 lakh. What is the amount of current assets? a) Rs.5 lakh b) Rs.3 lakh c) Rs.12 lakh d) Rs.15 lakh

Last Answer : c) Rs.12 lakh

_______are financial contracts that derive their value from an underlying assets. a. Future b. Forward c. Derivatives

Description : _______are financial contracts that derive their value from an underlying assets. a. Future b. Forward c. Derivatives

Last Answer : c. Derivatives

______ is a market for financial assets which have a long or indefinite maturity. a. Financial market b. Capital market c. Money market

Description : ______ is a market for financial assets which have a long or indefinite maturity. a. Financial market b. Capital market c. Money market

Last Answer : b. Capital market

The calibration of an HPLC detector can be evaluated by measurement of? A. Retention time B. Temperature C. Flow rate accuracy D. Intensity of the peak

Description : The calibration of an HPLC detector can be evaluated by measurement of? A. Retention time B. Temperature C. Flow rate accuracy D. Intensity of the peak

Last Answer : D. Intensity of the peak

If the aggregate fair market value of prescribed movable property received by a taxpayer as gift during the year is Rs.1,50,000, tax will be charged on ______. a) Rs.1,00,000 b) Rs.50,000 c) Rs.1,50,000 d) Rs.0

Description : If the aggregate fair market value of prescribed movable property received by a taxpayer as gift during the year is Rs.1,50,000, tax will be charged on ______. a) Rs.1,00,000 b) Rs.50,000 c) Rs.1,50,000 d) Rs.0

Last Answer : c) Rs.1,50,000

One is entitled to initiate insolvency resolution of a corporate debtor when the corporate debtor __________. a) does not have enough liquid cash to continue operations as a going concern b) has failed to repay a debt when due and payable c) has ceased to be a going concern d) has negative net worth

Description : One is entitled to initiate insolvency resolution of a corporate debtor when the corporate debtor __________. a) does not have enough liquid cash to continue operations as a going concern b) has failed to ... debt when due and payable c) has ceased to be a going concern d) has negative net worth

Last Answer : b) has failed to repay a debt when due and payable

A primary objective of dual exchange rates is to allow a country the ability to insulate its balance of payments from net: A. Current account transactions B. Unilateral transfers C. Merchandise trade transactions D. Capital account transactions

Description : A primary objective of dual exchange rates is to allow a country the ability to insulate its balance of payments from net: A. Current account transactions B. Unilateral transfers C. Merchandise trade transactions D. Capital account transactions

Last Answer : D. Capital account transactions

A primary objective of dual exchange rates is to allow a country the ability to insulate its balance of payments from net: A. Current account transactions B. Unilateral transfers C. Merchandise trade transactions D. Capital account transactions

Description : A primary objective of dual exchange rates is to allow a country the ability to insulate its balance of payments from net: A. Current account transactions B. Unilateral transfers C. Merchandise trade transactions D. Capital account transactions

Last Answer : D. Capital account transaction

Donations received for the special purpose will be taken to the– (A) Income and Expenditure Account (B) Assets side of the Balance Sheet (C) Liabilities side of the Balance Sheet (D) Receipts and Payments Account

Description : Donations received for the special purpose will be taken to the– (A) Income and Expenditure Account (B) Assets side of the Balance Sheet (C) Liabilities side of the Balance Sheet (D) Receipts and Payments Account

Last Answer : Answer: Liabilities side of the Balance Sheet

Kirti Co’s Balance Sheet shows Fixed Asset Rs. 3,60,000. At the time of absorption calculation of Net Assets is 10% less than the market value, then market value of such fixed assets is ............ (A) Rs. 3,24,000 (B) Rs. 4,00,000 (C) Rs. 4,20,000 (D) None of these

Description : Kirti Co’s Balance Sheet shows Fixed Asset Rs. 3,60,000. At the time of absorption calculation of Net Assets is 10% less than the market value, then market value of such fixed assets is ............ (A) Rs. 3,24,000 (B) Rs. 4,00,000 (C) Rs. 4,20,000 (D) None of these

Last Answer : (B) Rs. 4,00,000

In computing purchase consideration by ‘net asset method’ all assets including fictitious assets should be considered.

Description : In computing purchase consideration by ‘net asset method’ all assets including fictitious assets should be considered.

Last Answer : FALSE

Net capital employed is equal to --------------- a) Total assets minus liabilities b) Fixed asset plus net working capital c) Total asset minus long-term liabilities d) Total assets

Description : Net capital employed is equal to --------------- a) Total assets minus liabilities b) Fixed asset plus net working capital c) Total asset minus long-term liabilities d) Total assets

Last Answer : b) Fixed asset plus net working capital

According to the Accounting Standard (AS)-2, the inventory is to be valued at which one of the following ? (A) Actual cost or sales value, whichever is lower (B) Historical cost (C) Net realizable value (D) Historical cost or net realizable value, whichever is lower

Description : According to the Accounting Standard (AS)-2, the inventory is to be valued at which one of the following ? (A) Actual cost or sales value, whichever is lower (B) Historical cost (C) Net realizable value (D) Historical cost or net realizable value, whichever is lower

Last Answer : Answer: Historical cost or net realizable value, whichever is lower

The per share value Dev should assign to RC Ltd. is closest to ___________. a) Rs.15.35 b) Rs.20.86 c) Rs.17.35 d) Rs.18.46

Description : The per share value Dev should assign to RC Ltd. is closest to ___________. a) Rs.15.35 b) Rs.20.86 c) Rs.17.35 d) Rs.18.46

Last Answer : c) Rs.17.35

XYZ company has 50 lakh shares outstanding and plans to raise Rs.20 lakh by offering 10 lakh shares at Rs.2 per share. What is XYZ's post-money valuation? a) Rs.1.20 crore b) Rs.1 crore c) Rs.50 lakh d) Rs.2 crore

Description : XYZ company has 50 lakh shares outstanding and plans to raise Rs.20 lakh by offering 10 lakh shares at Rs.2 per share. What is XYZ's post-money valuation? a) Rs.1.20 crore b) Rs.1 crore c) Rs.50 lakh d) Rs.2 crore

Last Answer : a) Rs.1.20 crore

Which one of the following is covered in the valuation report? a) Proposed Transaction b) Related Parties c) Share Holding Pattern d) Valuation Methodologies

Description : Which one of the following is covered in the valuation report? a) Proposed Transaction b) Related Parties c) Share Holding Pattern d) Valuation Methodologies

Last Answer : d) Valuation Methodologies

Which statement is true? 1) The balance of payments depends on the principle of double-entry accounting. 2) Decrease in assets and increase in liabilities of net worth represent credits or sources of funds. 3) The balance of payment is a source- and uses of funds statement that reflects changes in assets, liabilities and net worth during a specified period of time. A. Only 1 B. Only 2 C. Only 3 D. 1, 2 and 3

Description : Which statement is true? 1) The balance of payments depends on the principle of double-entry accounting. 2) Decrease in assets and increase in liabilities of net worth represent credits or sources of funds. 3) The balance of ... period of time. A. Only 1 B. Only 2 C. Only 3 D. 1, 2 and 3

Last Answer : D. 1, 2 and 3

The credit default spread method of valuation of a guarantee given by a parent company on behalf of its subsidiary involves estimating the value ____________. a) using credit default spread based on the credit rating of the subsidiary b) using credit default spread based on the credit rating of the guarantor c) based on probability of default d) of the guarantee using an option pricing model

Description : The credit default spread method of valuation of a guarantee given by a parent company on behalf of its subsidiary involves estimating the value ____________. a) using credit default spread based on ... guarantor c) based on probability of default d) of the guarantee using an option pricing model

Last Answer : a) using credit default spread based on the credit rating of the subsidiary

Dunham Greenberg formula is not based the consumer’s _____(a) material status b) Income level c) financial position)

Description : Dunham Greenberg formula is not based the consumer’s _____(a) material status b) Income level c) financial position)

Last Answer : (a) material status

The setting up of the National Housing Bank (NHB), a fully owned subsidiary of the Reserve Bank of India in _____ as the apex institution marketed the beginning of emergence housing finance as a fund based financial services in India.(a) 1987, b) 1978, c)1988)

Description : The setting up of the National Housing Bank (NHB), a fully owned subsidiary of the Reserve Bank of India in _____ as the apex institution marketed the beginning of emergence housing finance as a fund based financial services in India.(a) 1987, b) 1978, c)1988)

Last Answer : c)1988)