Deck 2: Financial and Accounting

Question 1

Which of the following is considered to be the key segment of Indian Money Market?

A)Call Money
B)Commercial Bill
C)Inter-Corporate Deposit
D)Inter-Bank Participations

Answer 1

Call Money

Question 2

Which of the following is an important tool to finance credit sales?

A)Commercial Bill
B)Treasury Bill
C)Commercial Paper
D)Certificate of Deposit

Answer 2

Commercial Bill

Question 3

Credit Rating performs the function of credit risk evaluation reflecting the borrower's expected capability to repay the debt as per terms of issue.

Answer 3

True

Question 4

Credit Rating is beneficial to :

A)Subscribers
B)Regulators
C)Issuers
D)All of the above

Question 5

First Credit Rating Agency of India is ____________.

A)CRISIL
B)CARE
C)CARE.
D)Moody's Investor Service

Question 6

CARE stands for :

A)Credit Appraisal and Research Enterprise
B)Credit Analysis and Research Enterprise
C)Credit Analysis and Research Limited
D)Credit and Rating Enterprise.

Question 7

Which of the following is not a part of rating methodology?

A)Business Analysis
B)Financial Analysis
C)Management Evaluation
D)Subscriber Evaluation

Question 8

ICRA was promoted by _____________ jointly with other leading investment institutions, commercial banks and financial service companies.

A)ICICI
B)IFCI
C)IDBI
D)LIC

Question 9

CRISIL was set up in which year?

A)1988
B)1987
C)1986
D)1985

Question 10

A statement demonstrating the movement of funds into and out of the business during the course of accounting period is known as ___________

A)Cash Flow Statement
B)Fund Flow Statement
C)Adjusted Profit & Loss Statement
D)Statement of changes in Working Capital

Question 11

Analysis of funds is rightly called an Analysis of __________

A)Working Capital
B)Current Assets
C)Current Liabilities
D)None of the above

Question 12

Which of the following rules stands true while preparation of Schedule of changes in workingcapital?
1) An increase in current assets increases working capital.
2) An increase in current assets decreases working capital.
3) An increase in current liabilities decreases working capital.
4) An increase in current liabilities increases working capital

A)1 and 3
B)1 and 4
C)2 and 4
D)1, 2,3 and 4

Question 13

Among the following items, which represents the source of fund?

A)Increase in Capital
B)Borrowing / Loan
C)Profit from Business Operations
D)All of the above

Question 14

Fund Flow Statement is also known as:

A)Statement of Funds Flow
B)Statement of Sources and Application of Funds
C)Statement of Sources and uses of Funds
D)All of the above

Question 15

Which of the following statements is true?
1) If the amount of good will increases during current year, the difference is treated as purchase of goodwill.
2) If the amount of good will decreases during current year, It will treated as written off.

A)Only 1
B)Only 2
C)Both 1 and 2
D)None of the above

Question 16

Which of the following are treated as long term investments?

A)Non-current Investments
B)Trade Investments
C)Sinking Fund Investments
D)All of the above

Question 17

The balance of fixed assets of Breej Ltd. at the end of 2018 and 2019 were Rs 5,70,800 and Rs 6,15,300. During the year 2019 a machinery costing Rs 60,000 was sold. Determine the purchase of fixed assets.

A)Rs. 1,04,500
B)Rs. 1,40,500
C)Rs. 1,64,500
D)Rs. 44,500

Question 18

For Ram Industries, the balance of property has beenRs 20,000 and Rs 17,000 in 2018 and 2019 respectively. The profit on sale of property of Rs 2000 is credited to Capital Reserves Account. New property costing Rs 5000 bought in 2019. Determine sale proceeds forproperty.

A)Rs. 3,000
B)Rs. 10,000
C)Rs. 7,000
D)Rs. 15,000

Question 19

For Meghal Industries Ltd. opening balance for Provision for Taxation is Rs. 18,000 and closing balance is Rs. 15,000. During the year Taxed paid wereRs. 10,000. What is the current year's Provision for Taxation made from the profit?

A)Rs. 3,000
B)Rs. 13,000
C)Rs. 7,000
D)Rs. 23,000

Question 20

Which of the following are Non-current Assets?

A)Land, Building and Plant
B)Bills Receivable
C)Debtors
D)Pre-paid Expenses

Question 21

Which of the following are Current Liabilities?

A)Sundry Creditors
B)Bank Overdraft
C)Outstanding Salaries
D)All of the Above

Question 22

When a part of the Fixed Assets is sold during the year, the Profit on sale is shown on the credit side of which Account?

A)Adjusted Profit and Loss Account
B)Profit and Loss Account
C)Fixed Assets Accounts
D)Liabilities Accounts

Question 23

The Funds Flow and Cash Flow statements fail to give a clear idea about profitability of the company.

Question 24

Among the following items which item is shown on the debit side of Adjusted Profit and Loss Account?

A)Depreciation and other Non-cash Adjustments
B)Appropriation of Profit
C)Provision for Taxation
D)All of the Above