652. Which one of the following items is not generally used in preparing a statement of cash flows?
Adjusted trial balance
Comparative balance sheets
Current income statement
Additional information
Correct answer: (A) Adjusted trial balance
653. The order of presentation of activities on the statement of cash flows is
operating, investing, and financing
operating, financing, and investing
financing, operating, and investing
financing, investing, and operating
Correct answer: (A) operating, investing, and financing
654. Significant noncash transactions would not include
conversion of bonds into common stock
asset acquisition through bond issuance
treasury stock acquisition
exchange of plant assets
Correct answer: (C) treasury stock acquisition
655. In the Balance sheet of a firm, the debt equity ratio is 2:1. The amount of long term sources is Rs.12 lac. What is the amount of tangible net worth of the firm?
Rs.12 lac
Rs.8 lac
Rs.4 lac
Rs.2 lac
Correct answer: (B) Rs.8 lac
656. Authorised capital of a company is Rs.5 lac, 40% of it is paid up. Loss incurred during the year is Rs.50,000. Accumulated loss carried from last year is Rs.2 lac. The company has a Tangible Net Worth of
Nil
Rs.2.50 lac
(-) Rs.50,000
Rs.1 lac
Correct answer: (C) (-) Rs.50,000
657. Quick assets do not include
Govt. bond
Book debts
Advance for supply of raw materials
Inventories
Correct answer: (D) Inventories
658. Which of the following ratios would be useful in assessing short-term liquidity?
Current ratio, inventory turnover, fixed asset turnover
Average collection period, debt ratio, return on assets
Current ratio, quick ratio, cash-flow liquidity ratio
Quick ratio, accounts receivable turnover, returns on assets
Correct answer: (C) Current ratio, quick ratio, cash-flow liquidity ratio
659. Accounting Ratios are important tools used by
Managers
Researchers
Investors
All of the above
Correct answer: (D) All of the above
660. Ratio of Net Income to Number of Equity Shares known as?