Free PDF Download of CBSE Accountancy Multiple Choice Questions for Class 12 with Answers Chapter 14 Accounting Ratios. (A) In the form of Ratios Consumption expenditure 10 500 Government expenditure 3 000 Depreciation 500 Exports 1 200 Imports 1 000 Gross capital formation (investment) 2 200. A) $92,000 B) $62,500 C) $300,000 D) $8,000 37) Please choose one $ Debentures 1, 50, 000 Equity Capital 2, 00,000 General Reserve 90, 000 Accumulated profit 60,000 What is debt equity ratio ? Gross working capital and net working capital are two measures of the liquidity position of a business. Main objective of Common Size statement is : (C) 29% Free PDF Download of CBSE Accountancy Multiple Choice Questions for Class 12 with Answers Chapter 13 Common Size Statements. It is called the blood of the organisation. Interpreting and Adjusting Working Capital . Solution: Increase in working capacity of an asset and Replacing damage parts of an asset enhances the earning capacity of an asset. The working capital over total assets ratio, sometimes referred to as the net working capital ratio, measures the net liquid assets of a business as a percentage of it’s total assets. (C) To present changes in various items of income and expenses Financing permanent inventory buildup with long-term debt is an example of an aggressive working capital policy.? (B) Judge the cost items Along with fixed assets such as plant and equipment, working capital is considered a part of operating capital. 1. Since working capital is equal to the difference between current assets and current liabilities, it can be either a positive or a negative number. Arbitrage is the level processing technique introduced in ____________. (B) 10, 12, 15,20 ANSWER: A 52. (D) All of the Above, 6. (B) To provide for a common base for comparison Financial Management Multiple Choice Questions. Dec 22, 2020 - MCQs - National Income Accounting, Related Concept, Measurement Commerce Notes | EduRev is made by best teachers of Commerce. 16.32%. Subscribe to this blog. C. 18.00%. Investment A offers an expected rate of return of 16%, B of 8%, and C of 12%. Current liabilities are obligations that are required to be paid within a year or within one operating cycle. This number divided by $400,000 of gross revenues equals the working capital divided by gross revenue ratio of 33.75%. If you have any query regarding CBSE Class 12 Accountancy Common Size Statements MCQs Pdf, drop a comment below and we will get back to you at the earliest. Gross profit 50,000 Operating profit 42,000 Sales 250,00 0 What is the amount of operating expenses ? Sales are equal to: a) Cost of goods sold + gross profit b) Cost of goods sold - gross profit c) Gross profit- Cost of goods sold d) None of the above 36. ANSWER: c) (Cost of goods sold/Working capital) 8. Interpreting and Adjusting Working Capital . The DuPont Analysis uses the following ratios except: debt ratio profit margin Which of the following is untrue : From the following estimates of Sethal Ltd you are required to prepare a forecast of working capital requirements. The ratio is an indicator of the short term liquidity and financial strength of the business and indicates it’s ability to finance short term obligations. Working capital is: a. the amount by which the value of a company's current assets exceeds its current liabilities b. the amount by which the value of a company's current assets equal its current liabilities c. the amount by which the value of a company's current assets plus its current liabilities d. None of these the level of expenses. An operating cash flows is $12000 and gross fixed asset expenditure is $5000 then free cash flow will be −$7000 $7,000 $17,000 −$17000 Show Result Correct - Your answer is correct. MCQ Working Capital Management CPAR 1 84 - Free download as Word Doc (.doc / .docx), PDF File (.pdf), Text File (.txt) or read online for free. Cost of capital is equal to minimum required return, (c) Existing investment in … Q 10. (B) 45% 15 200 C. 15 400 D. 18 400 E. 15 700 Accountancy MCQs for Class 12 Chapter Wise with Answers PDF Download was Prepared Based on Latest Exam Pattern. Gross Working Capital will be always positive but the Net Working Capital may be positive or negative. The firm's cost of capital is 6% if it borrows $10 million, 10% if it borrows $20 million, and 15% if it borrows $30 million. This could have happened if. Gross working capital is equal to current assets. (C) Establish relationship between revenue from operations and other items of statement of profit & loss Which of the following statements is most correct? (B) To indicate the direction of movement A) 15: 20 (or 3:4) CFI is the official provider of the global Financial Modeling & Valuation Analyst (FMVA)™ FMVA® Certification Join 350,600+ students who work for companies like Amazon, J.P. Morgan, and Ferrari certification program, designed to help anyone become a world-class financial analyst. Free PDF Download of CBSE Accountancy Multiple Choice Questions for Class 12 with Answers Chapter 13 Common Size Statements. ANSWER: a) Closing stock is deducted from cost of goods sold . Free PDF Download of CBSE Accountancy Multiple Choice Questions for Class 12 with Answers Chapter 13 Common Size Statements. (C) To establish relationship between various items Gross Profit Ratio for a firm remains same but the Net Profit Ratio is decreasing. Accountancy MCQs for Class 12 Chapter Wise with Answers PDF Download was Prepared Based on Latest Exam Pattern. We hope this guide to the working capital formula has been helpful. (B) 55% Working capital gap= Current assets – current liabilities (other than bank borrowings) For example,Currrent if current asset is 100 and current… (C) 28% C. subsidies. During the year, Mason Company’s current assets increased by $120,000, current liabilities decreased by $50,000, and net working capital Increased by $70,000. 1. MCQ 7. What is meant by variable working capital ? 5. permanent net temporary gross End of Question 10 Question 11. To calculate working capital turnover, you take the working capital per dollar of sales and divide it into one. But the working capital requirements needs not be equal to. What is meant by core current assets ? Problem 7. If total assets of a firm are ₹8,20,000 and its fixed assets are ₹5,90,400, what will be the percentage of current assets on total assets? 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What will be the percentage of fixed assets on total assets? (A) To present the changes in various items comment. In a common size Statement of Profit & Loss, the amount of net revenue from operations is assumed to be equal to Accountancy MCQs for Class 12 Chapter Wise with Answers PDF Download was Prepared Based on Latest Exam Pattern. MCQ-Adda Subscribe. It’s also critical for determining accounts receivable and account payable terms. (B) 10 (D) All of the Above, 3. Gross domestic product (GDP), total market value of the goods and services produced by a country’s economy during a specified period of time.It includes all final goods and services—that is, those that are produced by the economic agents located in that country regardless of their ownership and that are not resold in any form. Document is highly rated by commerce students and has been defined in two different:... 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