Financial Questions and Answers

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Q51
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
Answer: Option C
Q52
In common size Balance Sheet analysis we evaluate-
  • A Increase or decrease over two years is analysed
  • B Only increase over two years is analysed
  • C Only decrease over two years is analysed
  • D All assets and liabilities are expressed in terms of percentage of total
Answer: Option D
Q53
Increase in fixed asset due to purchase is-
  • A Source of fund
  • B Fund from operation
  • C Use of fund
  • D None of the above
Answer: Option C
Q54
For the purpose of preparation of fund flow statement, fund means-
  • A Total resources
  • B Cash/bank balances
  • C Current Assets
  • D Working capital
Answer: Option D
Q55
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, Proposed Dividend-Rs. 96,000. The fund from operation would be-
  • A Rs. 4,40,000
  • B Rs. 4,00,000
  • C Rs. 6,40,000
  • D None of the above
Answer: Option D
Q56
Total sales is Rs. 7,60,000, cash sales Rs. 30,000 collection period is 25 days, debtors at Balance Sheet date will  be-
  • A Rs. 80,000
  • B Rs. 70,000
  • C Rs. 60,000
  • D Rs. 50,000
Answer: Option D
Q57
Price earning ratio is 83•33% and E.P.S. is Rs. 30. The market price of equity share will be-
  • A Rs. 33•33
  • B Rs. 66•67
  • C Rs. 20
  • D Rs. 25
Answer: Option D
Q58
If the current ratio is 2, current assests are worth Rs. 1,600, if current ratio is not allowed to fall below 1•5, how much additional can be borrowed by the company on the short term basis ?
  • A Rs. 400
  • B Rs. 600
  • C Rs. 2,733
  • D Rs. 800
Answer: Option A
Q59
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
Answer: Option A
Q60
Average stock of firm is Rs. 80,000, the opening stock is Rs. 10,000 less than closing stock. Find opening stock.
  • A Rs. 95,000
  • B Rs. 85,000
  • C Rs. 90,000
  • D Rs. 75,000
Answer: Option D
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