Description : From the information given below, calculate Debt service coverage Ratio- Net profit after interest and Tax Rs. 40,000, Depreciation Rs. 5,000, Rate of Income Tax 50%, 10% Mortgage Debentures Rs. 60,000. Fixed Interest Charges Rs. 6 ... . (A) 4 06 times (B) 5 06 times (C) 6 06 times (D) 7 06 times
Last Answer : Answer: 4•06 times
Description : Alfa Company Limited acquired the business of M/s Bharat Traders. The valuation of the items acquired was-building Rs. 1,20,000; machinery Rs. 80,000 and stock-in-trade Rs. 30,000. The company issued in lieu of the above items 800, ... ) Rs. 2,30,000 (B) Rs. 1,00,000 (C) Rs. 50,000 (D) Rs. 30,000
Last Answer : Answer: Rs. 30,000
Description : Which one of the following securities cannot be issued by a Public Limited Company in India ? (A) Participating preference shares (B) Redeemable preference shares (C) Deferred shares (D) Debentures.
Last Answer : Answer: Deferred shares
Description : What is Capital Redemption Reserve Account available for ? (A) Redemption of redeemable preference shares (B) Redemption of redeemable debentures (C) Reorganization of share capital (D) Issue of fully paid bonus shares
Last Answer : Answer: Issue of fully paid bonus shares
Description : In case of a company, “Buy Back” is related to– (A) Prospectus (B) Shares (C) Debentures (D) Cheques
Last Answer : Answer: Shares
Description : On 1st April, 2013, Y Ltd. Issued 1000, 12% debentures of Rs. 100 each at a discount of 6%. These debentures are redeemable in five equal annual instalments at the end of each year. What is the amount of discount to be written off ... & L A/c ? (A) Rs. 2000 (B) Rs. 1800 (C) Rs. 1200 (D) Rs. 600
Last Answer : Answer: Rs. 1200
Description : Which one of the following transactions changes the current ratio ? (A) Purchase of goods for cash (B) Plant acquired on account (C) Sold goods on credit (D) Debentures converted into equity capital
Last Answer : Answer: Plant acquired on account
Description : Share premium account can be used for– (A) Paying tax liability (B) Meeting the cost of issue of shares or debentures (C) Paying Dividend on shares (D) Meeting the loss on sale of old asset
Last Answer : Answer: Meeting the cost of issue of shares or debentures
Description : What is the maximum limit of remuneration for a whole time manager in a company ? (A) 3% of net annual profit (B) 5% of net annual profit (C) 7% of net annual profit (D) None of the above
Last Answer : Answer: 5% of net annual profit
Description : Hytech electronics is in recession. Find the marked price is what percentage of cost price, if there may be a profit of 10% after allowing a commission of 5% to middle man?
Last Answer : Let the CP= Rs.100 Then, SP=Rs.110 MP=Rs. x Then, 95% of x= Rs 110 x= 110*100/95 = 115.7%
Description : The profit of a company (whose capital is divided into 25‚000 shares of Rs. 10 each) for the last three years are : Rs. 50‚000; Rs. 60‚000 and Rs. 40‚000. The fair return on investment is taken at 10% p.a. The value of company’s share will be– (A) Rs. 10 (B) Rs. 20 (C) Rs. 30 (D) Rs. 40
Last Answer : Answer: Rs. 20
Description : R. G. Ltd. purchased machinery from K.G. Company for a book value of Rs. 4,00,000. The consideration was paid by issue of 10%. Debenture of Rs. 100 each at a discount of 20%. The debenture account will be credited by– (A) Rs. 4,00,000 (B) Rs. 5,00,000 (C) Rs. 3,20,000 (D) Rs. 4,80,000
Last Answer : Answer: Rs. 4,00,000
Description : What is your bond rate? The prime rate is 10%; your current bond rating slipped one category (from AAA to AA). a. 12.1% b. 10.5% c. 11.4% d. 11.2%
Last Answer : b. 10.5%
Description : The underwriting commission is payable in cash alone.
Last Answer : FALSE
Description : The percentage of underwriting commission on shares applied to by public is same as allotted shares devolved on underwriters.
Description : 2. The underwriting commission is payable in cash .
Description : The underwriting commission is payable in cash .
Description : When the underwriting commission becomes payable , the underwriter A/c is debited
Description : According to the Partnership Act, the maximum number of partners in a banking firm may be– (A) 10 (B) 12 (C) 4 (D) 20
Last Answer : Answer: 10
Description : A company has issued a 20-year bond at Rs. 1000 par value with a coupon rate of 10 per cent. The required rate of return on similar bonds is 12 per cent. What is the current value of the bond ? (A) Rs. 905•33 (B) Rs. 850•45 (C) Rs. 833•33 (D) Rs. 820•20
Last Answer : Answer: Rs. 905•33
Description : A article is listed at Rs. 2000 and a discount of 20% is offered on the list price .What additional discount must be offered to the customer bring the net price to Rs. 1400? A. 12.5% B. 10% C. 12% D. 15%
Last Answer : Answer – A. 12.5% Explanation – S.P after 1st discount, 100%………2000 80%………? ?=2000×80/100=1600 Net S.P = Rs. 1400. Discount on Rs. 1600 = Rs. 200. ∴Required discount = (200/1600 x 100)% =12.5%
Description : The price of a necklace, passing through a 3 persons, rises on the whole by 32.5%. If the 1st and the 2nd sellers earned 10% and 12.5% profit respectively. Find the percentage profit earned by the 3rd seller.
Last Answer : Let the original price of the necklace be Rs x and Let the profit earned by the 3rd seller be P% Then (100+P)% of 112.5% of 110% of x = 132.5% of x (100+P/100)*(112.5/100)*(x) = 132.5/100 ... /12375 100+P = 107.07 P= 107.07 - 100 = 7.07% The percentage profit earned by the 3rd seller = 7%
Description : The maximum amount of dust which may be permitted in aggregates is (A) 5% of the total aggregates for low workability with a coarse grading (B) 10% of the total aggregates for low workability with ... of the total aggregates for a mix having high workability with fine grading (D) All the above
Last Answer : Answer: Option D
Description : Negotiation Ceilings which represent the maximum management is willing to pay are always a. 12% above the starting positions. b. 5% above the starting positions. c. 10% above the starting positions. d. unlimited. e. none of the above.
Last Answer : c. 10% above the starting positions.
Description : Present rate of Senior citizens saving scheme account is____ payable quarterly. a) 10% b) 9.3% c) 8.5 % d) 9.5%
Last Answer : b) 9.3%
Description : The total investment in a project is Rs. 10 lakhs and the annual profit is 1.5 lakhs. If the project life is 10 years, then the simple rate of return on investment is (A) 15% (B) 10% (C) 1.5% (D) 150%
Last Answer : (C) 1.5%
Description : Emergency loans are made at what rate over the normal Current Debt interest rate? a. 5% b. 7.5% c. 10% d. 12% e. 25%
Last Answer : b. 7.5%
Description : Given Real GDP of 6.5% and rate of inflation of 5.5% nominal GDP will be……. (a) 12% ; (b) 10% ; (c) 10.5% ; (d) 9.5%
Last Answer : (a) 12% ;
Description : If the purchases made during the year were Rs. 60,000, the balance of stock in trade at the beginning and at the end of the year were Rs. 12,000 and Rs. 9,000 respectively and the gross profit on sales was 1/5th, when which ... year ? (A) Rs. 15,750 (B) Rs. 14,000 (C) Rs. 12,500 (D) Rs. 17,250
Last Answer : Answer: Rs. 12,500
Description : Government grants related to income as per the Accounting Standard (AS)-12 should be- (A) Presented as a credit in the statement of Profit and Loss (B) Presented as a deferred income on the asset ... of balance sheet (D) Presented both in the Profit and Loss statement and in the balance sheet
Last Answer : Answer: Presented both in the Profit and Loss statement and in the balance sheet
Description : If Opening Stock – Rs.15,000 Purchases – Rs.37,500 Direct Expenses – Rs.1,500 Closing Stock – Rs.7,500 Operating Expenses – Rs.3,000 Sales are Rs. 60,000 during the year, what is the net profit ? (A) Rs. 12,000 (B) Rs. 10,500 (C) Rs. 7,500 (D) Rs. 3,000
Last Answer : Answer: Rs. 10,500
Description : The gap between two General Meetings of the Company should not be more than– (A) 12 months (B) 18 months (C) 15 months (D) 20 months
Last Answer : Answer: 15 months
Description : Sundry Debtors – Rs.15,000 Bills Receivable (B/R) – Rs.12,500 Cash at Bank – Rs.17,500 Stock – Rs.15,000 Profit – Rs.20,000 Creditors – Rs.25,000 Bills Payable (B/P) – Rs.15,000 Sales – Rs.1,00,000 What is the Acid Test Ratio ? (A) 1•5 : 1 (B) 1•125 : 1 (C) 16 2/3% (D) 50%
Last Answer : Answer: 1•125 : 1
Description : Accounting for Intangible Assets are related to– (A) AS - 10 (B) AS - 12 (C) AS - 24 (D) AS - 26
Last Answer : Answer: AS - 26
Description : Paperless office calls for– (A) Minimum record keeping (B) Maximum use of telephone (C) Maximum use of computers (D) Elimination of reporting
Last Answer : Answer: Maximum use of computers
Description : The minimum and maximum number of members in a Private Company is– (A) 2 and 50 (B) 2 and 20 (C) 2 and 10 (D) None of the above
Last Answer : Answer: 2 and 50
Description : The balance appearing in the books of a company at the end of year were CRR A/c Rs. 50,000, Security Premium Rs. 5,000, Revaluation Reserve Rs. 20,000, P & L A/c (Dr) Rs. 10,000. Maximum amount available for distribution of ... will be- (A) Rs. 50,000 (B) Rs. 55,000 (C) Rs. 45,000 (D) Rs. 57,000
Last Answer : Answer: Rs. 55,000
Description : What is the maximum number of partners in Banking business?
Last Answer : Ten
Description : With regard to the rate of return on investment (ROI), which one of the following statements is not valid ? (A) It is an overall indicator of the profitability of an enterprise (B) It is a ... superior measure compared to the cash flow generated per share (D) It was first developed by Dupont, USA
Last Answer : Answer: It is a superior measure compared to the cash flow generated per share
Description : The rate of gross profit is 20% on sales and the cost of goods sold is Rs. 1‚00‚000, the amount of gross profit will be– (A) Rs. 30‚000 (B) Rs. 25‚000 (C) Rs. 20‚000 (D) Rs. 16‚667
Last Answer : Answer: Rs. 25‚000
Description : What is cross rate ? (A) A rate of exchange derived from central bank (B) A rate of exchange between two currencies, other than those that form a market's principal rates (C) A rate of ... for buying currencies (D) A rate of exchange quoted by a dealer in foreign exchange for selling currencies
Last Answer : Answer: A rate of exchange between two currencies, other than those that form a markets principal rates
Description : If super profit is Rs. 4‚000 and normal rate of return is 8 per cent, the amount of goodwill will be– (A) Rs. 40‚000 (B) Rs. 50‚000 (C) Rs. 4‚00‚000 (D) Rs. 5‚000
Last Answer : Answer: Rs. 50‚000
Description : Which of the following is not a feature of bonds ? (A) Par value (B) Yield to maturity (C) Coupon rate (D) Maturity
Last Answer : Answer: Yield to maturity
Description : Rate of Gross Profit on cost is 25%. Total sales is Rs. 1,00,000 and Average Stock is Rs. 1,60,000. Stock Turnover Ratio will be– (A) 0•5 times (B) 0•8 times (C) 0•10 times (D) 0•4 times
Last Answer : Answer: 0•5 times
Description : Net profit after tax of Rs. 2,00,000 is Rs. 4,00,000. Share capital is Rs. 8,00,000 and revenue reserve is Rs. 2,00,000. What is rate of return on equity ? (A) 40% (B) 50% (C) 60% (D) 75%
Last Answer : Answer: 40%
Description : A long-term security yielding a fixed rate of interest, issued by a company is called ________ A. Shares B. Debentures C. Bonds D. Both (A) and (C) E. None of the Above
Last Answer : B. Debentures Explanation: A debenture is a type of debt instrument that is not secured by physical assets or collateral. Instruments issued by companies are called debentures. The difference between the two is actually a function of where they are registered and pay stamp duty and how they trade.
Description : Randeep invests Rs. 25,200 in buying shares of face value of Rs. 40 each at 5% premium. The dividend on these shares is 10% per annum. Find the divide
Last Answer : Randeep invests Rs. 25,200 in buying shares of face value of Rs. 40 each at 5% premium. The dividend on these ... B. Rs. 2400 C. Rs. 4200 D. Rs. 3680
Description : In a town of 10,000 families it was found that 40% family buy newspaper A, 20% buy newspaper B and 10% families buy newspaper C, 5% families buy A and
Last Answer : In a town of 10,000 families it was found that 40% family buy newspaper A, 20% buy newspaper B and 10% ... 3100` B. `3300` C. `2900` D. `1400`
Description : Within the red blood cells the buffering capacity contributed by the phosphates is (A) 5% (B) 10% (C) 20% (D) 25%
Last Answer : Answer : D
Description : Proteins have the SDA: (A) 5% (B) 10% (C) 20% (D) 30%