When a fixed asset is bought as hire purchase, interest element is classified under ______ and loan element is classified under________. A. Operating activities, financing activities B. Financing activities, investing activities C. Investing activities, operating activities D. None of the above

When a fixed asset is bought as hire purchase, interest element is classified under ______  and loan element is classified under________.  
A. Operating activities, financing activities  
B. Financing activities, investing activities
C. Investing activities, operating activities
D. None of the above
by

1 Answer

Answer :

B. Financing activities, investing activities
by

Related questions

In the case of financial enterprises, the cash flow resulting from interest and dividend received and interest paid should be classified as cash flow from A. Operating activities B. Financing activities C. Investing activities D. None of the above

Description : In the case of financial enterprises, the cash flow resulting from interest and dividend received and interest paid should be classified as cash flow from A. Operating activities B. Financing activities C. Investing activities D. None of the above

Last Answer : A. Operating activities

Purchase of fixed asset is classified as------activity a) financing b) investing c) operating d) others

Description : Purchase of fixed asset is classified as------activity a) financing b) investing c) operating d) others

Last Answer : Purchase of fixed asset is classified as------activity a) financing b) investing c) operating d) others

As per Accounting Standard-3, Cash Flow is classified into A. Operating activities and investing activities B. Investing activities and financing activities C. Operating activities and financing activities D. Operating activities, financing activities and investing activities

Description : As per Accounting Standard-3, Cash Flow is classified into A. Operating activities and investing activities B. Investing activities and financing activities C. Operating activities and financing activities D. Operating activities, financing activities and investing activities

Last Answer : D. Operating activities, financing activities and investing activities

Dividend paid are classified under-------------------activities a) Financing b) Investing c) Operating d) Other

Description : Dividend paid are classified under-------------------activities a) Financing b) Investing c) Operating d) Other

Last Answer : a) Financing

While preparing Cash Flow Statement, non-cash items and non-operating items are not required to be adjusted under________ A. Indirect method B. Direct method C. Both a and b D. None of the above

Description : While preparing Cash Flow Statement, non-cash items and non-operating items are not required to be adjusted under________ A. Indirect method B. Direct method C. Both a and b D. None of the above

Last Answer : B. Direct method

Sale of patent is classified under--------- a) Investing activity b) Financing activity c) Operating activity d) None of these

Description : Sale of patent is classified under--------- a) Investing activity b) Financing activity c) Operating activity d) None of these

Last Answer : c) Operating activity

Buy back of shares is shown under----------------------- a) operating activities b) investing activities c) financing activities d) none of these

Description : Buy back of shares is shown under----------------------- a) operating activities b) investing activities c) financing activities d) none of these

Last Answer : c) financing activities

Rent received by a company (whose main business is real estate) is classified as a) Investing activity b) Financing activity c) Operating activity d) Cash equivalent

Description : Rent received by a company (whose main business is real estate) is classified as a) Investing activity b) Financing activity c) Operating activity d) Cash equivalent

Last Answer : c) Operating activity

Proposed dividend is classified as----------- a) Investing activity b) Financing activity c) Operating activity d) Cash equivalent

Description : Proposed dividend is classified as----------- a) Investing activity b) Financing activity c) Operating activity d) Cash equivalent

Last Answer : c) Operating activity

Cash payment on redemption of debenture is an example of cash flow from _________ activities a) Operating b) Investing c) Financing d) Others

Description : Cash payment on redemption of debenture is an example of cash flow from _________ activities a) Operating b) Investing c) Financing d) Others

Last Answer : c) Financing

Cash receipts from royalties is an example of cash flow from__________ a) Investing activities b) Financing activities c) Operating activities d) None of these

Description : Cash receipts from royalties is an example of cash flow from__________ a) Investing activities b) Financing activities c) Operating activities d) None of these

Last Answer : a) Investing activities

Income tax paid should be shown separately as the cash flows from----------- activities. a) Financing b) Investing c) Operating d) Others

Description : Income tax paid should be shown separately as the cash flows from----------- activities. a) Financing b) Investing c) Operating d) Others

Last Answer : c) Operating

Profit on sale of machinery comes under------------ a) Investing activity b) Financing activity c) Operating activity d) None of these

Description : Profit on sale of machinery comes under------------ a) Investing activity b) Financing activity c) Operating activity d) None of these

Last Answer : c) Operating activity

Dividend paid under AS- 3 is---------- a) Cash flow from financing activity b) Cash flow from operating activity c) Cash flow from investing activity d) None of these

Description : Dividend paid under AS- 3 is---------- a) Cash flow from financing activity b) Cash flow from operating activity c) Cash flow from investing activity d) None of these

Last Answer : c) Cash flow from investing activity

Cash payment suppliers of goods and services are shown under-------------. a) Operating b) Financing c) Investing

Description : Cash payment suppliers of goods and services are shown under-------------. a) Operating b) Financing c) Investing

Last Answer : a) Operating

A non performing Asset in Banking Business means ________ A. A fixed asset of Bank is not been utilized B. A portion of deposits not been utilized C. A loan asset on which interest and/or instalments remain unchanged. D. All of the Above E. None of the Above

Description : A non performing Asset in Banking Business means ________ A. A fixed asset of Bank is not been utilized B. A portion of deposits not been utilized C. A loan asset on which interest and/or instalments remain unchanged. D. All of the Above E. None of the Above

Last Answer : C. A loan asset on which interest and/or instalments remain unchanged. Explanation: A nonperforming asset (NPA) refers to a classification for loans on the books of financial institutions that are in ... is classified as nonperforming when loan payments have not been made for a period of 90 days.

A minor was facing a criminal prosecution for smuggling drugs. He borrowed Rs. 5000 to hire an advocate to defend him in the court of law. What is the remedy available to the creditor if the minor does not return the money on his own? A. The creditor cannot recover the amount from the minor since a contract with a minor is void ab initio B. The amount of loan can be recovered from minor’s property since it is a loan for necessaries C. The creditor can recover his amount of loan from the minor on his (minor’s) attaining the age of majority D. The creditor can recover his amount from the parent or guardian of the minor

Description : A minor was facing a criminal prosecution for smuggling drugs. He borrowed Rs. 5000 to hire an advocate to defend him in the court of law. What is the remedy available to the creditor if the ... the age of majority D. The creditor can recover his amount from the parent or guardian of the minor

Last Answer : A. The creditor cannot recover the amount from the minor since a contract with a minor is void ab initio

Provision for tax is shown as a part of-----------activity a) financing b) investing c) operating d) others

Description : Provision for tax is shown as a part of-----------activity a) financing b) investing c) operating d) others

Last Answer : c) operating

Interest paid by the government on the loans raised is called - (1) Debt Servicing (2) Deficit Financing (3) Discounted Budgeting (4) Bridge-loan

Description : Interest paid by the government on the loans raised is called - (1) Debt Servicing (2) Deficit Financing (3) Discounted Budgeting (4) Bridge-loan

Last Answer : (1) Debt Servicing Explanation: Debt service is the amount of money required to make payments on the principal and interest on outstanding loans, the interest on bonds. or the principal of maturing bonds. An ... or company unable to make such payments is said to be "unable to service one's debt."

Interest paid by the government on the loans raised is called (1) Debt Servicing (2) Deficit Financing (3) Discounted Budgeting (4) Bridge-loan

Description : Interest paid by the government on the loans raised is called (1) Debt Servicing (2) Deficit Financing (3) Discounted Budgeting (4) Bridge-loan 

Last Answer :  Debt Servicing

______ is prepared for single level of activity and single set of business conditions. A. Fixed budget B. Flexible budget C. Both a and b D. None of the above

Description : ______ is prepared for single level of activity and single set of business conditions. A. Fixed budget B. Flexible budget C. Both a and b D. None of the above

Last Answer : A. Fixed budget

______ provides an estimate of the capital amount that may be required for buying fixed assets needed for meeting production requirements. A. Production budget B. Cash budget C. Capital expenditure budget D. None of the above

Description : ______ provides an estimate of the capital amount that may be required for buying fixed assets needed for meeting production requirements. A. Production budget B. Cash budget C. Capital expenditure budget D. None of the above

Last Answer : B. Cash budget

An intangible asset a. does not have physical substance, yet often is very valuable. b. is worthless because it has no physical substance. c. is converted into a tangible asset during the operating cycle. d. cannot be classified on the balance sheet because it lacks physical substance.

Description : An intangible asset a. does not have physical substance, yet often is very valuable. b. is worthless because it has no physical substance. c. is converted into a tangible asset during the operating cycle. d. cannot be classified on the balance sheet because it lacks physical substance.

Last Answer : a. does not have physical substance, yet often is very valuable.

Price is the only element in the marketing mix that produces: A. Fixed cost B. Expense C. Variable cost D Revenue

Description : Price is the only element in the marketing mix that produces: A. Fixed cost B. Expense C. Variable cost D Revenue

Last Answer : D Revenue

Cash flow from financing activities include payment of interest on borrowing and___ to share holders a) Dividend b) Interest c) Bonus d) Bonus shares

Description : Cash flow from financing activities include payment of interest on borrowing and___ to share holders a) Dividend b) Interest c) Bonus d) Bonus shares

Last Answer : a) Dividend

Deficit financing implies : A. printing new currency notes B. public revenue in excess of public expenditure C. public expenditure in excess of public revenue D. replacing new currency with worn out currency

Description : Deficit financing implies : A. printing new currency notes B. public revenue in excess of public expenditure C. public expenditure in excess of public revenue D. replacing new currency with worn out currency

Last Answer : C. public expenditure in excess of public revenue

The unpaid principal balance of a loan on property divided by the asset‟s appraised value is termed as ______ A. Liquidity Adjustment Facility B. Loss Given Default(LGD) C. Loan to Value(LTV) D. Long term liabilities

Description : The unpaid principal balance of a loan on property divided by the asset‟s appraised value is termed as ______ A. Liquidity Adjustment Facility B. Loss Given Default(LGD) C. Loan to Value(LTV) D. Long term liabilities

Last Answer : C. Loan to Value(LTV) Explanation: The loan-to-value (LTV) ratio is a financial term used by lenders to express the ratio of a loan to the value of an asset purchased. The term is ... to represent the ratio of the first mortgage lien as a percentage of the total appraised value of real property.

NBFCs include ______ A. loan company B. investment company C. asset finance company D. All of the Above E. None of the Above

Description : NBFCs include ______ A. loan company B. investment company C. asset finance company D. All of the Above E. None of the Above

Last Answer : D. All of the Above Explanation: NBFCs include a loan company, an investment company, asset finance company (i.e. a company conducting the business of equipment leasing or hire purchase finance) and Residuary Non-Banking Companies.

Interest payments, principal payments, and cash dividends are the typical budgeting cash-flow analysis because they are A. included in; financing B. excluded from; financing C. included in; operating D. excluded from; operating

Description : Interest payments, principal payments, and cash dividends are the typical budgeting cash-flow analysis because they are A. included in; financing B. excluded from; financing C. included in; operating D. excluded from; operating

Last Answer : C. included in; operating

Rather than constructing their own currency baskets, many nations peg the value of their currencies to a currency basket defined by the International Monetary Fund. Which of the following illustrates this basket? A. IMF tranche B. Special Drawing Rights C. Primary reserve asset D. Swap facility

Description : Rather than constructing their own currency baskets, many nations peg the value of their currencies to a currency basket defined by the International Monetary Fund. Which of the following illustrates this ... . IMF tranche B. Special Drawing Rights C. Primary reserve asset D. Swap facility

Last Answer : B. Special Drawing Right

The term current asset doesn’t cover A. Car B. Debtors C. Stock D. Prepaid expenses

Description : The term current asset doesn’t cover A. Car B. Debtors C. Stock D. Prepaid expenses

Last Answer : A. Car

Which element of the promotional mix consists of short-term incentives to encourage the purchase of a product? A. advertising B. public relations C. direct marketing D. sales promotion

Description : Which element of the promotional mix consists of short-term incentives to encourage the purchase of a product? A. advertising B. public relations C. direct marketing D. sales promotion

Last Answer : D. sales promotion

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

Expenditure incurred on purchase of fixed asset is ____________ 

Description : Expenditure incurred on purchase of fixed asset is ____________ 

Last Answer : Expenditure incurred on purchase of fixed asset is ____________ (a) Revenue Expenditure (b) ... Deferred Revenue Expenditure (d) None of these

Increase in fixed asset due to purchase is– (A) Source of fund (B) Fund from operation (C) Use of fund (D) None of the above

Description : Increase in fixed asset due to purchase is– (A) Source of fund (B) Fund from operation (C) Use of fund (D) None of the above

Last Answer : Answer: Use of fund

Under High and Low Point method, the output at two different levels is compared with the amount of __________ incurred at these two points. A. Total fixed costs B. Total costs C. Total fixed costs D. None of the above

Description : Under High and Low Point method, the output at two different levels is compared with the amount of __________ incurred at these two points. A. Total fixed costs B. Total costs C. Total fixed costs D. None of the above

Last Answer : B. Total costs

Your firm has a philosophy that is analogous to the hedging (maturity matching) approach. Which of the following is the most appropriate non-spontaneous form for financing the excess seasonal current asset needs? A. Trade credit. B. 6-month bank notes. C. Accounts payable. D. Common stock equity.

Description : Your firm has a philosophy that is analogous to the hedging (maturity matching) approach. Which of the following is the most appropriate non-spontaneous form for financing the excess seasonal current asset needs? ... credit. B. 6-month bank notes. C. Accounts payable. D. Common stock equity.

Last Answer : B. 6-month bank notes.

Which of the following sources is not use for medium term financing? A. Issue of equity shares. B. Issue of debentures. C. Term loans from banks. D. Sale of current asset.

Description : Which of the following sources is not use for medium term financing? A. Issue of equity shares. B. Issue of debentures. C. Term loans from banks. D. Sale of current asset.

Last Answer : A. Issue of equity shares.

The markets in which the market offerings are bought from sellers for reselling purpose are known as A. Business markets B. Reseller markets C. Government markets D. International markets

Description : The markets in which the market offerings are bought from sellers for reselling purpose are known as A. Business markets B. Reseller markets C. Government markets D. International markets

Last Answer : B. Reseller markets

The responsibility centers, for control purposes, may be classified into _____ types. A. Five B. Three C. Four D. None of the above

Description : The responsibility centers, for control purposes, may be classified into _____ types. A. Five B. Three C. Four D. None of the above

Last Answer : B. Three

ales force structure in which a sales representative works to sell specific items of product line is classified as A. indirect sales force structure B. territorial sales force structure C. customer sales force structure D. product sales force structure

Description : ales force structure in which a sales representative works to sell specific items of product line is classified as A. indirect sales force structure B. territorial sales force structure C. customer sales force structure D. product sales force structure

Last Answer : D. product sales force structure

Method of managing advertising budget at level company can have money for is classified as A. percentage of sales method B. affordable method C. competitive parity method D. objective and task method

Description : Method of managing advertising budget at level company can have money for is classified as A. percentage of sales method B. affordable method C. competitive parity method D. objective and task method

Last Answer : B. affordable method

Method of managing advertising budget at a certain percentage of sales price per unit or forecasted sales of products is classified as A. percentage of sales method B. affordable method C. competitive parity method D. objective and task method

Description : Method of managing advertising budget at a certain percentage of sales price per unit or forecasted sales of products is classified as A. percentage of sales method B. affordable method C. competitive parity method D. objective and task method

Last Answer : A. percentage of sales method

Promotional mix strategy in which advertisement and promotions are made to final customers to induce them to buy products is classified as A. pull strategy B. moral selling strategy C. rational selling strategy D. push strategy

Description : Promotional mix strategy in which advertisement and promotions are made to final customers to induce them to buy products is classified as A. pull strategy B. moral selling strategy C. rational selling strategy D. push strategy

Last Answer : A. pull strategy

Promotion strategy in which producers promotes goods to final customers by using sales force is classified as A. rational selling strategy B. push strategy C. pull strategy D. moral selling strategy

Description : Promotion strategy in which producers promotes goods to final customers by using sales force is classified as A. rational selling strategy B. push strategy C. pull strategy D. moral selling strategy

Last Answer : B. push strategy

Considering promotional mix, paid, non personal promotion of ideas or market offerings by some specific sponsor is classified as A. public relations B. advertising C. sales promotion D. personal selling

Description : Considering promotional mix, paid, non personal promotion of ideas or market offerings by some specific sponsor is classified as A. public relations B. advertising C. sales promotion D. personal selling

Last Answer : D. personal selling

In marketing intermediaries, way of distribution in which few dealers distribute company's product in selective territories is classified as A. selective distribution B. intensive distribution C. inclusive distribution D. exclusive distribution

Description : In marketing intermediaries, way of distribution in which few dealers distribute company's product in selective territories is classified as A. selective distribution B. intensive distribution C. inclusive distribution D. exclusive distribution

Last Answer : D. exclusive distribution

Network of delivering products to customer which is composed of distributors, suppliers and manufacturing company is classified as A. supply chain management B. marketing channels C. delivery channels D. value delivery network

Description : Network of delivering products to customer which is composed of distributors, suppliers and manufacturing company is classified as A. supply chain management B. marketing channels C. delivery channels D. value delivery network

Last Answer : D. value delivery network

In marketing channels, conflict occurs in marketing channels working at same level is classified as A. steep conflict B. slope conflict C. vertical conflict D. horizontal conflict

Description : In marketing channels, conflict occurs in marketing channels working at same level is classified as A. steep conflict B. slope conflict C. vertical conflict D. horizontal conflict

Last Answer : D. horizontal conflict

Process of managing upstream and downstream of final goods, flow of raw materials and information about resellers and final consumers is classified as A. marketing logistics network B. supply chain management C. delivery network D. physical distribution network

Description : Process of managing upstream and downstream of final goods, flow of raw materials and information about resellers and final consumers is classified as A. marketing logistics network B. supply chain management C. delivery network D. physical distribution network

Last Answer : B. supply chain management