The assets that can be easily converted into cash within a short period, i.e., 1 year or less are known as A) Current assets B) Fixed assets C) Intangible assets D) Investments

The assets that can be easily converted into cash within a short period, i.e., 1 year or less are known as A) Current assets B) Fixed assets C) Intangible assets D) Investments
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Answer: A
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Copyrights, Patents and Trademarks are, A) Current assets B) Fixed assets C) Intangible assets D) Investments

Description : Copyrights, Patents and Trademarks are, A) Current assets B) Fixed assets C) Intangible assets D) Investments

Last Answer : Answer: C 

Long term assets having no physical existence but, possessing a value are called A) Intangible assets B) Fixed assets C) Current assets D) Investments

Description : Long term assets having no physical existence but, possessing a value are called A) Intangible assets B) Fixed assets C) Current assets D) Investments

Last Answer : Answer: A

________ do not give the returns during the same period during which they are paid for A. Intangible assets B. Fixed assets C. Both (A) and (B) D. None of the above

Description : ________ do not give the returns during the same period during which they are paid for A. Intangible assets B. Fixed assets C. Both (A) and (B) D. None of the above

Last Answer : B. Fixed assets

Stock is A. Included in the category of fixed assets B. Part of current assets C. Intangible D. Tangible

Description : Stock is A. Included in the category of fixed assets B. Part of current assets C. Intangible D. Tangible

Last Answer : B. Part of current assets

Cash equivalent are usually of short term but highly -----------------investments a) liquid b) Fixed c) Changed d) None of these

Description : Cash equivalent are usually of short term but highly -----------------investments a) liquid b) Fixed c) Changed d) None of these

Last Answer : a) liquid

How can a firm provide a margin of safety if it cannot borrow on short notice to meet its needs? A. Maintain a low level of current assets (especially cash and marketable securities). B. Shorten the maturity schedule of financing. C. Increasing the level of fixed assets (especially plant and equipmentD. Lengthening the maturity schedule of financing

Description : How can a firm provide a margin of safety if it cannot borrow on short notice to meet its  needs? A. Maintain a low level of current assets (especially cash and marketable securities) ... the level of fixed assets (especially plant and equipment D. Lengthening the maturity schedule of financing

Last Answer : D. Lengthening the maturity schedule of financing

The debts which are to be repaid within a short period (a year or less) are referred to as, A) Current Liabilities B) Fixed liabilities C) Contingent liabilities D) All the above

Description : The debts which are to be repaid within a short period (a year or less) are referred to as, A) Current Liabilities B) Fixed liabilities C) Contingent liabilities D) All the above

Last Answer : Answer: A

Fixed assets, inventories and investments in Equity shares are examples of ____________ items.

Description : Fixed assets, inventories and investments in Equity shares are examples of ____________ items.

Last Answer : Non-monetary,

The Amalgamation Adjustment Account appears in the books, it is shown under the heading of ......... in the balance sheet. (A) Reserve and Surplus (B) Fixed Assets (C) Investments (D) Miscellaneous Expenditure

Description : The Amalgamation Adjustment Account appears in the books, it is shown under the heading of ......... in the balance sheet. (A) Reserve and Surplus (B) Fixed Assets (C) Investments (D) Miscellaneous Expenditure

Last Answer : (B) Equity Shareholders Account

The Amalgamation Adjustment Account appears in the books, it is shown under the heading of ......... in the balance sheet. (A)Reserve and Surplus (B)Fixed Assets (C)Investments (D)Miscellaneous expenditure

Description : The Amalgamation Adjustment Account appears in the books, it is shown under the heading of ......... in the balance sheet. (A)Reserve and Surplus (B)Fixed Assets (C)Investments (D)Miscellaneous expenditure

Last Answer : (D)Miscellaneous expenditure

Which of the following statements relating to working capital financing is not correct? A. An aggressive policy uses long-term debt to finance fluctuating current assetsB. Long-term debt is less risky that short-term debt C. A conservative policy uses long-term debt to finance fixed assets D. Short-term debt is cheaper than long-term debt E. The matching principle indicates that fluctuating current assets should be financed by short-term debt

Description : Which of the following statements relating to working capital financing is not correct? A. An aggressive policy uses long-term debt to finance fluctuating current assets B. Long-term debt ... . The matching principle indicates that fluctuating current assets should be  financed by short-term debt

Last Answer : A. An aggressive policy uses long-term debt to finance fluctuating current assets

Goodwill, Copyright and Trademarks should be classified as– (A) Tangible assets (B) Intangible assets (C) Current assets (D) Fictitious assets

Description : Goodwill, Copyright and Trademarks should be classified as– (A) Tangible assets (B) Intangible assets (C) Current assets (D) Fictitious assets

Last Answer : Answer: Intangible assets

Patents and copyrights fall under the category of 1. Current assets 2. Liquid assets 3. Intangible assets 4. Nominal assets 5. None of these

Description : Patents and copyrights fall under the category of 1. Current assets 2. Liquid assets 3. Intangible assets 4. Nominal assets 5. None of these

Last Answer : Intangible assets

Intangible assets are a. listed under current assets on the balance sheet. b. not listed on the balance sheet because they do not have physical substance. c. noncurrent resources. d. listed as a long-term investment on the balance sheet.

Description : Intangible assets are a. listed under current assets on the balance sheet. b. not listed on the balance sheet because they do not have physical substance. c. noncurrent resources. d. listed as a long-term investment on the balance sheet.

Last Answer : Intangible assets are a. listed under current assets on the balance sheet. b. not listed on the balance sheet because they do not have physical substance. c. noncurrent resources. d. listed as a long-term investment on the balance sheet.

It is not true that current assets are assets that a company expects to a. realize in cash within one year. b. sell within one year. c. use up within one year. d. acquire within one year.

Description : It is not true that current assets are assets that a company expects to a. realize in cash within one year. b. sell within one year. c. use up within one year. d. acquire within one year.

Last Answer : d. acquire within one year.

Certain characteristics or circumstances may increase the susceptibility of assets to misappropriation. Opportunities to misappropriate assets increase due to the following except: a. Inventory items that are small in size, of high value, or in high demand. b. Known or anticipated future employee layoffs. c. Easily convertible assets, such as bearer bonds, diamonds, or computer chips. d. Fixed assets which are small in size, marketable, or lacking observable identification of ownership.

Description : Certain characteristics or circumstances may increase the susceptibility of assets to misappropriation. Opportunities to misappropriate assets increase due to the following except: a. Inventory items that ... which are small in size, marketable, or lacking observable identification of ownership.

Last Answer : Certain characteristics or circumstances may increase the susceptibility of assets to misappropriation. Opportunities to misappropriate assets increase due to the following except: a. Inventory items that ... which are small in size, marketable, or lacking observable identification of ownership.

Land held for future use will be reported in the ____________ section of a classified balance sheet. a. Long-term assets. b. Long-term investments. c. Property, Plant and Equipment. d. Current assets..

Description : Land held for future use will be reported in the ____________ section of a classified balance sheet. a. Long-term assets. b. Long-term investments. c. Property, Plant and Equipment. d. Current assets..

Last Answer : b. Long-term investments.

Depreciation is shown in ____________________. a. P & L statement b. Current Assets c. Investments d. Creditors

Description : Depreciation is shown in ____________________. a. P & L statement b. Current Assets c. Investments d. Creditors

Last Answer : a. P & L statement

Which of the following factors most likely would heighten an auditor's concern about the risk of fraudulent financial reporting? a. Large amounts of liquid assets that are easily convertible into cash. b. Low growth and profitability as compared to other entity's in the same industry. c. Financial management's participation in the initial selection of accounting principles. d. An overly complex organizational structure involving unusual lines of authority.

Description : Which of the following factors most likely would heighten an auditor's concern about the risk of fraudulent financial reporting? a. Large amounts of liquid assets that are easily ... of accounting principles. d. An overly complex organizational structure involving unusual lines of authority.

Last Answer : An overly complex organizational structure involving unusual lines of authority.

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.

The asset, the amount of which can be realized within a period of one year are known as ---------------- a) Current liability b) Current asset c) Liquid liability d) Fixed asset

Description : The asset, the amount of which can be realized within a period of one year are known as ---------------- a) Current liability b) Current asset c) Liquid liability d) Fixed asset

Last Answer : b) Current asset

Which of the following statements is correct for a conservative financing policy for a firm relative to a former aggressive policy? A. The firm uses long-term financing to finance all fixed and current assets. B. The firm will see an increase in its expected profits. C. The firm will see an increase in its risk profile. D. The firm will increase its dividends per share (DPS) this period.

Description : Which of the following statements is correct for a conservative financing policy for a firm  relative to a former aggressive policy? A. The firm uses long-term financing to finance all fixed and current ... its risk profile. D. The firm will increase its dividends per share (DPS) this period.

Last Answer : B. The firm will see an increase in its expected profits.

Accounting for Intangible Assets are related to– (A) AS - 10 (B) AS - 12 (C) AS - 24 (D) AS - 26

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

Intangible assets are 1. Which can be physically verified 2. Which cannot be seen or touched 3. Which are written as expenses 4. Which will be spent in the future 5. None of these

Description : Intangible assets are 1. Which can be physically verified 2. Which cannot be seen or touched 3. Which are written as expenses 4. Which will be spent in the future 5. None of these

Last Answer : Which cannot be seen or touched

intangible assets include each of the following except a. copyrights. b. goodwill. c. land improvements. d. patents.

Description : intangible assets include each of the following except a. copyrights. b. goodwill. c. land improvements. d. patents.

Last Answer : c. land improvements.

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

Which of the following is not included in the category of 'Intangible Assets' ? A. Patents rights B. Copy rights C. Competitive benefit and privileges D. Machinery

Description : Which of the following is not included in the category of 'Intangible Assets' ? A. Patents rights B. Copy rights C. Competitive benefit and privileges D. Machinery

Last Answer : D. Machinery

Fixed assets are held by business for _____ a) Converting into cash b) Generating revenue c) Resale d) None of the above

Description : Fixed assets are held by business for _____ a) Converting into cash b) Generating revenue c) Resale d) None of the above

Last Answer : b) Generating revenue

Which of the following is incorrect? a) Good will intangible asset b) Sundry debtors -current asset c) Loose tools tangible fixed asset d) Outstanding expenses -current asset.

Description : Which of the following is incorrect? a) Good will intangible asset b) Sundry debtors -current asset c) Loose tools tangible fixed asset d) Outstanding expenses -current asset.

Last Answer : d) Outstanding expenses -current asset.

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

Bonus shares can be issued by a company A. Out of the Reserves created by revaluation of fixed assets B. Out of share premium not collected in cash C. Without any provision for it in the Articles of Association of the company D. Out of free reserves built out of genuine profit

Description : Bonus shares can be issued by a company A. Out of the Reserves created by revaluation of fixed assets B. Out of share premium not collected in cash C. Without any provision for it in the Articles of Association of the company D. Out of free reserves built out of genuine profit

Last Answer : D. Out of free reserves built out of genuine profit

______ 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

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

Which of the following is not an inflow of cash a) Sale of fixed asset b) Issue of debentures for cash c) Funds from operation d) Acquisition of assets

Description : Which of the following is not an inflow of cash a) Sale of fixed asset b) Issue of debentures for cash c) Funds from operation d) Acquisition of assets

Last Answer : d) Acquisition of assets

How does complimentary social managerial and organizational assets help optimizee returns from information technology investments?

Description : How does complimentary social managerial and organizational assets help optimizee returns from information technology investments?

Last Answer : What is the answer ?

The availability of cash and other cash like marketable instruments that are useful in purchases and investments are commonly known as _______ a. Liquidity b. Credit c. Marketability

Description : The availability of cash and other cash like marketable instruments that are useful in purchases and investments are commonly known as _______ a. Liquidity b. Credit c. Marketability

Last Answer : a. Liquidity

The payback period is the period A. a project takes to pay back the loan taken to purchase the capital assets B. equal to the useful life of the machines C. a project takes to recover its initial cash outflow D. over which the project will be getting operating cash inflows

Description : The payback period is the period  A. a project takes to pay back the loan taken to purchase the capital assets  B. equal to the useful life of the machines  C. a project takes to recover its initial cash outflow  D. over which the project will be getting operating cash inflows

Last Answer : C. a project takes to recover its initial cash outflow

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 statement about long-term investments is not true? a. They will be held for more than one year. b. They are not currently used in the operation of the business. c. They include investments in stock of other companies and land held for future use. d. They can never include cash accounts.

Description : Which statement about long-term investments is not true? a. They will be held for more than one year. b. They are not currently used in the operation of the business. c. They include investments in stock of other companies and land held for future use. d. They can never include cash accounts.

Last Answer : d. They can never include cash accounts.

Which of the following is an example of an intangible asset ? 1. building 2. machinery 3. patent 4. cash 5. None of these

Description : Which of the following is an example of an intangible asset ? 1. building 2. machinery 3. patent 4. cash 5. None of these

Last Answer : patent

The payback method for the measurement of return on investment (A) Gives a correct picture of profitability (B) Underemphasises liquidity (C) Does not measure the discounted rate of return (D) Takes into account the cash inflows after the recovery of investments

Description : The payback method for the measurement of return on investment (A) Gives a correct picture of profitability (B) Underemphasises liquidity (C) Does not measure the discounted rate of return (D) Takes into account the cash inflows after the recovery of investments

Last Answer : (C) Does not measure the discounted rate of return

Risk, as it relates to working capital, means that there is jeopardy to the firm for not maintaining sufficient current assets to . A. meet its cash obligations as they occur and take advantage of prompt payment B. discounts C. support the proper level of sales and take prompt payment discounts D. maintain current and acid-test ratios at or above industry norms E. meet its cash obligations as they occur and support the proper level of

Description : Risk, as it relates to working capital, means that there is jeopardy to the firm for not  maintaining sufficient current assets to . A. meet its cash obligations as they occur and take advantage ... above industry norms E. meet its cash obligations as they occur and support the proper level of

Last Answer : D. maintain current and acid-test ratios at or above industry norms

Which of the following is an important fact about working capital in Capsim? a. The life blood of any organization b. All of the money tied up in things you one day wish to sell c. Can be seen on the balance sheet under the headings current assets and current liabilities d. The change of working capital can be seen on the cash flow statement e. All of the above are important

Description : Which of the following is an important fact about working capital in Capsim? a. The life blood of any organization b. All of the money tied up in things you one day wish to sell c. Can be ... The change of working capital can be seen on the cash flow statement e. All of the above are important

Last Answer : e. All of the above are important

Which of the following is not a Real Account? a) Cash A/c b) Investments A/c c) Out standing rent A/c d) Purchases A/c

Description : Which of the following is not a Real Account? a) Cash A/c b) Investments A/c c) Out standing rent A/c d) Purchases A/c

Last Answer : c) Out standing rent A/c

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

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

Hofstede found that some countries have a long-term orientation while others focus on the short term. His results mean that: A. US business would be happy to invest in nuclear power and space exploration without any government help. B. British businesses prefer investments with a quick return. C. Firms in Brazil shy away from ten-year investment projects. D. Indian business is impatient for a return on its investments.

Description : Hofstede found that some countries have a long-term orientation while others focus on the short term. His results mean that: A. US business would be happy to invest in nuclear power and space ... from ten-year investment projects. D. Indian business is impatient for a return on its investments.

Last Answer : British businesses prefer investments with a quick return.

For the purpose of preparation of fund flow statement, fund means– (A) Total resources (B) Cash/bank balances (C) Current Assets (D) Working capital

Description : For the purpose of preparation of fund flow statement, fund means– (A) Total resources (B) Cash/bank balances (C) Current Assets (D) Working capital

Last Answer : Answer: Working capital