Tag: book keeping and accountancy

Quizzes (126) Questions (1524)

Questions Related to book keeping and accountancy

Multiple choice book keeping and accountancy bases of accounting cash and mercantile system basis of accounting basis of accounting system

What deductions are allowed from the transaction value ____________________.

  1. Discounts offered to customers, subject to conditions

  2. Packing Charges, subject to conditions

  3. Amount paid by customer on behalf of the supplier, subject to conditions

  4. Freight charges incurred by the supplier for CIF terms of supply, subject to conditions
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Under GST valuation rules, discounts offered to customers are deductible from the transaction value if they are known at or before the time of supply and are linked to specific invoices.

Multiple choice book keeping and accountancy bases of accounting cash and mercantile system basis of accounting basis of accounting system

The relationship between potential unsystematic risk and reward is given by ____________.

  1. Excess return to beta ratio

  2. Excess return to security

  3. Excess return to square security

  4. Excess return to beta square ratio
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The Treynor ratio, or excess return to beta ratio, measures the return earned in excess of that which could have been earned on a riskless investment per unit of market risk.

Multiple choice book keeping and accountancy bases of accounting cash and mercantile system basis of accounting basis of accounting system

Which of the following is an intrastate supply?

  1. Supplier of goods located in Delhi and place of supply of goods SEZ located in Delhi

  2. Supplier of goods located in Delhi and place of supply of goods in Jaipur

  3. Supplier of goods located in Delhi and place of supply of goods in Delhi

  4. All the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

An intrastate supply occurs when the location of the supplier and the place of supply are in the same state.

Multiple choice book keeping and accountancy statement of changes in financial position meaning, merits and demerits of cash flow statement meaning and objectives of cash flow statement budgeting

Sum of discounted cash flows is best defined as _____________.

  1. technical equity

  2. defined future value

  3. project net present value

  4. equity net present value
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The sum of discounted cash flows for a project, minus the initial investment, is the definition of the Net Present Value (NPV).

Multiple choice book keeping and accountancy statement of changes in financial position meaning, merits and demerits of cash flow statement meaning and objectives of cash flow statement budgeting

Cash Flow Statement explains the reason on surplus or deficit of cash.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A Cash Flow Statement provides a detailed breakdown of the sources and uses of cash, explaining why the cash balance increased or decreased over a period.

Multiple choice book keeping and accountancy statement of changes in financial position meaning, merits and demerits of cash flow statement meaning and objectives of cash flow statement budgeting

Cash Management and Insurance are chief function of the ____________.

  1. Tax Manager

  2. Controller

  3. Treasurer

  4. Accountant

  5. Finance Manager
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The treasurer of an organization deals with the liquid assets of the firm and his responsibilities include cash management and insurance of assets.

Multiple choice book keeping and accountancy statement of changes in financial position meaning, merits and demerits of cash flow statement meaning and objectives of cash flow statement budgeting

Cash and Cash Equivalent includes _____________________.

  1. Cash on hand and bank balance.

  2. Marketable Securities.

  3. Short-term investments.

  4. All of the above.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Cash and cash equivalents include highly liquid assets such as cash on hand, bank balances, marketable securities, and short-term investments that can be converted to cash quickly.

Multiple choice book keeping and accountancy statement of changes in financial position meaning, merits and demerits of cash flow statement meaning and objectives of cash flow statement budgeting

The financial ratio (the best single predictor) that is used in the Beavers Model to predict the failure of a company is the _____________.

  1. Debt-equity ratio

  2. Cash flow to total debt ratio

  3. Price earnings ratio

  4. Return on investment

  5. None of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The Beaver's Model for bankruptcy prediction identified the cash flow to total debt ratio as the most significant single predictor of corporate failure.

Multiple choice book keeping and accountancy statement of changes in financial position meaning, merits and demerits of cash flow statement meaning and objectives of cash flow statement budgeting

Cash outflows are costs of project and are represented by ____________.

  1. negative numbers

  2. positive numbers

  3. hurdle number

  4. relative number
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

In financial modeling, cash outflows represent money leaving the project and are denoted by negative numbers to distinguish them from cash inflows.