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.
Description : Fair value of Tangible fixed assets acquired in exchange of share shall be at its…………….. a) Actual cost b) Market Price c) Actual cost less expenses of exchange d) Market price less expenses of exchange
Last Answer : a) Actual cost
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
Description : Which of the following statement is correct? A. Fixed assets must always be shown at market value B. Book-keeping and accounting are different terms C. Owner's Equity = Assets + Liabilities D. Patents is an example of current asset
Last Answer : A. Fixed assets must always be shown at market value
Description : While calculating purchase price, the following values of assets are considered (A)Book value (B)New values fixed (C)Average values (D)Market values
Last Answer : (B)New values fixed
Description : Which of these items are excluded in the computation of National Income under value added method? (a) Own acquired fixed assets by the Government enterprises, Govt. and household; (b) Production for self-consumption ; (c) Imputed rent for own occupied house ; (d) All the three
Last Answer : (d) All the three
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
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
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.
Description : which of the following shows a firm's spending plans on fixed assets such as large equipment? -General Knowledge
Last Answer : Capital budget shows a firm's spending plans on fixed assets such as large equipment.
Description : (i) Which accounting standard is followed for depreciation on fixed assets __________
Last Answer : Complete the following sentence : (i) Which accounting standard is followed for depreciation on fixed ... for a period of less than one year ______
Description : Which one of the following ratios is likely to be affected the most on account of price level changes ? (A) Current Ratio (B) Inventory Turnover Ratio (C) Debtors’ Turnover Ratio (D) Fixed Assets Turnover Ratio
Last Answer : Answer: Debtors’ Turnover Ratio
Description : The following data, relates to manufacturing company for the year 2006-07- Net Profit as per P & L A/c-Rs. 2,40,000; Depreciation-Rs. 80,000; Goodwill written-off- Rs. 40,000, Profit on Sale of Fixed Assets-Rs. 16,000, ... ) Rs. 4,40,000 (B) Rs. 4,00,000 (C) Rs. 6,40,000 (D) None of the above
Last Answer : Answer: None of the above
Description : According to Balance Sheet equation concept, the capital will be– (A) Capital = Liabilities – Assets (B) Capital = Fixed Assets – Current Assests (C) Capital = Assets – Liabilities (D) Capital = Assets + Liabilities
Last Answer : Answer: Capital = Assets – Liabilities
Description : Permanent working capital A. varies with seasonal needs B. includes fixed assets C. is the amount of current assets required to meet a firm's long-term minimum needs D. includes accounts
Last Answer : C. is the amount of current assets required to meet a firm's long-term minimum needs
Description : Net working capital refers to A. total assets minus fixed assets B. current assets minus current liabilities C. current assets minus inventories D. current
Last Answer : B. current assets minus current liabilities
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
Description : To financial analysts, "working capital" means the same thing as . A. Total assets B. fixed assets C. current assets D. current assets minus current liabilities.
Last Answer : C. current assets
Description : The primary source of revenue for a wholesaler is a. investment income. b. service fees. c. the sale of merchandise. d. the sale of fixed assets the company owns.
Last Answer : c. the sale of merchandise.
Description : Fixed assets, inventories and investments in Equity shares are examples of ____________ items.
Last Answer : Non-monetary,
Description : Monetary items _________ (a) Are assets and liabilities to be received or paid in money (b) Are assets to be received in fixed or determinable amounts of money (c) Are money held and assets and ... to be received or paid in fixed or determinable amounts of money (d) None of the above
Last Answer : Are money held and assets and liabilities to be received or paid in fixed or determinable amounts of money
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
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
Description : Fixed assets are double the current assets and half the capital. The current assets are Rs.3,00,000 andinvestments are Rs.4,00,000. Then the current liabilities recorded in balance sheet will be a) 2,00,000 b) 1,00,000 c) 3,00,000 d) 4,00,000
Last Answer : b) 1,00,000
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
Description : Which of the following is not deferred revenue expenditure? A. Heavy advertisement expenditure. B. Expenses incurred in removing the business to more convenient premises. C. Preliminary expenses. D. Depreciation on fixed assets.
Last Answer : D. Depreciation on fixed assets.
Description : Which of the following assets are dealt with by AS - 10 (Accounting Standard on Fixed Assets)? A. Land, building, plant and machinery, vehicles, furniture and fittings B. Goodwill and patents C. Trademarks and designs D. All of the above
Last Answer : D. All of the above
Description : AS -10 (Accounting Standard on Fixed Assets) does not deal with accounting for the following items to which special considerations apply A. Forests, plantations and similar regenerative natural ... resources C. Expenditure on real estate development and livestock D. None of the above
Last Answer : D. None of the above
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
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
Description : Which one of the following is an example of sources of funds? A. Decrease in share capital B. Increase in long-term liabilities C. Decrease in long-term liabilities D. Increase in fixed assets
Last Answer : B. Increase in long-term liabilities
Description : The assets of a business can be classified as A. Only fixed assets B. Only current assets C. Fixed and current assets D. None of the above
Last Answer : C. Fixed and current assets
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
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
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
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
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
Description : Working capital is expressed as------ a) Current asset-fixed asset b) Fixed assets-current liabilities c) Current assets-current liabilities d) None of these
Last Answer : c) Current assets-current liabilities
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
Description : Coverage of fixed assets by shareholder’s equity is a good tests of---------------- a) solvency b) liquidity c) Activity d) profitability
Last Answer : a) solvency
Description : The relationship between total outside liabilities and total assets can be indicated through ------------ a) Fixed asset ratio b) Solvency ratio c) Fixed asset turn over ratio d) Proprietary ratio
Last Answer : b) Solvency 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
Description : The ratio which shows the relationship b/w share holder’s fund and total assets a) Debit equity ratio b) Proprietary ratio c) Solvency ratio d) Fixed asset
Last Answer : b) Proprietary ratio
Description : Which of the following leads to under-capitalization? A. raising of more money by issue of shares. B. acquiring fixed assets on excessive amounts. C. over-estimation of earnings for enterprise. D. under-estimation of initial rate of earnings.
Last Answer : D. under-estimation of initial rate of earnings.
Description : Which of the following leads to over-capitalization? A. acquiring fixed assets on excessive amounts. B. under-estimation of initial rate of earnings. C. using lower-rate of capitalization. D. under estimation of required funds.
Last Answer : A. acquiring fixed assets on excessive amounts.
Description : The expenses incurred on the setting up of the enterprise are called as _________. A. Cost of financing. B. Cost of promotion.. C. Cost of fixed assets. D. Cost of current assets.
Last Answer : B. Cost of promotion..
Description : Institutional agencies grant financial assistance to small scale industries for _________. A. participation in equity capital only. B. acquisition of fixed assets. C. working capital assistance. D. all of the above.
Last Answer : D. all of the above.
Description : Large investment is made in fixed assets, the project will be termed as __________. A. Capital Intensive. B. Labour Intensive. C. Product Intensive. D. Market Intensive.
Last Answer : A. Capital Intensive.
Description : Which of these best explains fixed assets? A) Are bought to be used in the business B) Are expensive items bought for the business C) Are items which will not wear out quickly D) Are of long life and are not purchased specifically for resale
Last Answer : Answer: D
Description : Copyrights, Patents and Trademarks are, A) Current assets B) Fixed assets C) Intangible assets D) Investments
Last Answer : Answer: C