Financial Statements 1 Test 5

Result

Financial Statements 1 Test 5

Score
-
out of -
Rank
-
out of -

TIME Taken - -

SHARING IS CARING

If our Website helped you a little, then kindly spread our voice using Social Networks. Spread our word to your readers, friends, teachers, students & all those close ones who deserve to know what you know now.

Weekly Quiz Competition

Question 1
1 / -0

In the Financial Statement, the fixed assets appear at ________________.

A
Historical cost.

B
Value appraised by competent values.

C
Current value.

D
Either of the above.
Question 2
1 / -0

The credit balance in the bank account is _________.

A
An asset

B
A liability

C
Capital

D
A revenue

E
An expense

Solution

Normally Bank account is having a debit balance which signifies the amount lying in bank account and this will be treated as current assets.
Credit balance in bank account is a liability.
Question 3
1 / -0

In a financial statement, separate items of fixed assets may be shown at ___________________.

A
Same basis of valuation.

B
Different basis of valuation.

C
Same basis for each category of fixed assets.

D
None of the above.
Question 4
1 / -0

Directions For Questions

Based on the information/data given below, answer question no:
Stock of stationery on Jan. 3, 2015 - Rs 400
Payments for stationery during 2015 - Rs 2,200
Creditors for stationery outstanding during 2015 - Rs 200
Stock of stationery on Dec. 31, 2015 - Rs 250

...view full instructions

Which amount will be entered in the Receipts and Payments A/c for the year ended Dec. 31, 2015?

A
1,800

B
2,000

C
2,250

D
2,200
Question 5
1 / -0

Assets very easily convertible into cash are ___________.

A
Current Asset

B
Fixed assets

C
Liquid assets

D
Floating assets

Solution

Liquid Assets are those which can be converted easily in cash without much loosing the value. Liquid assets are part of current assets.
Examples of liquid assets are cash in bank, cash on hand, sundry debtors, marketable securities etc.
Question 6
1 / -0

Operating profit is __________ of operating revenue over operating expense.

A
excess

B
deficit

C
balance

D
none

Solution

Operative profit means the profit generated through normal business operations. Excess of operating revenue over operating expenses is called operating profit.

This can be shown below:

Sales Rs.100000
Less: Cost of Goods Sold Rs. 75000
--------------------
Gross Profit Rs. 25000
Less: Operating Expenses Rs. 15000
-------------------
Operating Profit Rs. 10000
------------------
Question 7
1 / -0

_____________ = net profit + non operating expenses - non operating incomes.

A
Operating Profit

B
Gross profit

C
Net profit

D
Capital profit

Solution

Operating profit is defined as the profit earned by the business from its core business activity. There are certain item of non operating expense and non operating income which are adjusted from operating profit to find out the net profit of the business.

For example, dividend received on investment is an example of non operating income and loss on sale of fixed asset is an example of non operating expenses.

Hence, Operating Profit = Net profit + Non Operating Expenses - Non operating income.
Question 8
1 / -0

Gagan purchases a bond today and sells 6 months before its maturity. The yield realized is known as ________________.

A
Holding period return

B
Current yield if coupon interest is received.

C
Yield to maturity

D
All of the above

E
Both (A) & (B)

Solution

The yield that Gagan earned over the holding period of 6 months before the bond's maturity is termed as holding period return.
Question 9
1 / -0

Which of the following statement is not correct?

A
Both NPV and IRR will lead to same accept and reject decision

B
In case of mutually exclusive project, NPV & IRR method may give conflicting ranking.

C
IRR is relative measure of profitability while NPV is an absolute measure of profitability.

D
IRR method confirms to goal of financial management i.e. maximization of shareholders wealth

Solution

Actually NPV confirms to goal of financial management. IRR would rank, for example a $$100\%$$ return on investment on Re1 considerably higher than $$20\%$$ ROI on Rs. 10 lakhs.
Question 10
1 / -0

Inventory is classified as a ________.

A
fixed asset

B
current asset

C
fictitious asset

D
none of the above

Solution

Current assets are those which arise during the course of business. These assets are fluctuating with each of the business transaction. Examples are sundry debtors, inventory, bills receivables, cash at bank, cash on hand etc.

Inventory is as an item of current asset.

User

Question Analysis

Correct -
Wrong -
Skipped -

My Perfomance

Score
-
out of -
Rank
-
out of -

Re-Attempt Weekly Quiz Competition

Financial Statements 1 Test 5

Result

Financial Statements 1 Test 5

Score

-

Rank

-

SHARING IS CARING

Question 1

Historical cost.

Value appraised by competent values.

Current value.

Either of the above.

Question 2

An asset

A liability

Capital

A revenue

An expense

Solution

Question 3

Same basis of valuation.

Different basis of valuation.

Same basis for each category of fixed assets.

None of the above.

Question 4

1,800

2,000

2,250

2,200

Question 5

Current Asset

Fixed assets

Liquid assets

Floating assets

Solution

Question 6

excess

deficit

balance

none

Solution

Question 7

Operating Profit

Gross profit

Net profit

Capital profit

Solution

Question 8

Holding period return

Current yield if coupon interest is received.

Yield to maturity

All of the above

Both (A) & (B)

Solution

Question 9

Both NPV and IRR will lead to same accept and reject decision

In case of mutually exclusive project, NPV & IRR method may give conflicting ranking.

IRR is relative measure of profitability while NPV is an absolute measure of profitability.

IRR method confirms to goal of financial management i.e. maximization of shareholders wealth

Solution

Question 10

fixed asset

current asset

fictitious asset

none of the above

Solution

User

Question Analysis

My Perfomance

Score

-

Rank

-

Results Announcement on: coming Monday

Stay Tuned: We’ll update you on your result via email or SMS.