Accountancy Tes...

Which of the following is not included under the head non-current assets?

Financial statements are useful for both short-term and long-term investors.

The financial statements provide basic input for industrial, taxation and other economic policies of the government.

What will be the amount shown under the head current assets when the following data is given?

Inventories = ₹ 2,30,000

Trade Receivables = ₹ 70,000

Cash and Cash Equivalents = ₹ 50,000

Current Investments = ₹ 50,000

Which of the following item can be presented on the asset side of the balance sheet of a company?

________ reserve can be used freely for any purpose.

Which of the following is not included under ‘revenue from operations’ in the statement of profit and loss?

For a financial company, interest on loans given is shown in the statement of profit and loss as

There are two statements marked as Assertion (A) and Reason (R). Read the statements and choose the appropriate option from the options given below.

Assertion (A): The management uses accounting information to arrive at various decisions like determination of selling price, cost controls, investment into new ventures, etc.

Reason (R): The management has the responsibility to safeguard the customer’s investment and increase its value by managing the business efficiently.

Read the following case study and answer the question on the basis of the same. XYZ Ltd. is a financial company. For the year 2020-21 interest on loans given amounted to ₹4,00,000 and fees received for arranging loans amounted to ₹ 1,00,000. Its miscellaneous income amounted to ₹ 50,000. Further, a building was sold during the year on which XYZ Ltd. earned a profit of ₹ 70,000. Moreover, it earned a profit of ₹ 75,000 on the sale of investments during the year.

Profit on sale of investments will be shown as in the statement of profit and loss.