511.
If the current ratio stands at 2 : 1 an equal increase in current assets and current liabilities would the current ratio.
512.
Which of the following assets are dealt with by AS - 10 (Accounting Standard on Fixed Assets)?
c
Land, building, plant and machinery, vehicles, furniture and fittings
513.
What is customer value?
a
Post purchase dissonance
b
Excess of satisfaction over expectation
c
Ratio between the customer's perceived benefits and the resources used to obtained these benefits
514.
When prices show a rising trend, which of the following methods of inventory valuation will result in lower income and lower valuation of inventory?
515.
The proposal is accepted if the profitability index is more than
516.
The main objective of providing depreciation is
b
To calculate true profit
c
To provide funds for replacement of fixed assets
d
To show the true financial position in the balance sheet
517.
Which is the importance of the concept of cost of capital?
a
Helpful in Capital budgeting process
b
Helpful in Capital structure decisions
c
Helpful in comparative analysis of various sources of finance
518.
AS -10 (Accounting Standard on Fixed Assets) does not deal with accounting for the following items to which special considerations apply
a
Wasting assets including material rights, expenditure on the exploration for and extraction of minerals, oil, natural gas and similar non-regenerative resources
b
Forests, plantations and similar regenerative natural resources
c
Expenditure on real estate development and livestock
519.
Assessment of depreciation and the amount to be charged in respect thereof in an accounting period are usually not based on
a
Market value of the asset
b
Expected useful life of the depreciable asset
c
Estimated residual value of the depreciable asset
d
Historical cost or other amount substituted for the historical cost of the depreciable asset when the asset had been revalued
520.
Consider the following statements: Redeemable preference shares can be redeemed out of
a
Profits available for dividends
b
Sale proceeds of the new issue of shares
521.
With regard to the rate of return on investment (ROI), which of the following statements is not valid?
a
It is a triangular relationship in the sense that ROI = Profit margin x Asset turnover
b
It is a superior measure compared to the cash flow generated per share
c
It is an overall indicator of the profitability of an enterprise
d
It was first developed by Du Pont, USA
522.
Which factor of production in the United States is most likely to be made worse off (its factor payment will decrease) because of the North American Free Trade Agreement?
523.
In the computation of the debtors turnover ratio accounts receivable includes
524.
For the purpose of calculating ROI capital employed means
c
Current assets - current liabilities
d
Fixed assets + current assets - current liabilities
525.
Consider the following statements with respect to the sinking-fund method of depreciation
a
Depreciation is smaller than the assets annual depreciable cost.
b
Annual net incidence on profit and loss account remains constant due to changing fixed depreciation.
d
Amount of interest constantly declines due to assets reducing balance.
