602. ABC Ltd. has a Current Ratio of 1.5: 1 and Net Current Assets of Rs. 5,00,000. What are the Current Assets?
Rs. 5,00,000
Rs. 10,00,000
Rs. 15,00,000
Rs. 25,00,000
Correct answer: (C) Rs. 15,00,000
603. Suppliers and Creditors of a firm are interested in
Profitability Position
Liquidity Position
Market Share Position
Debt Position
Correct answer: (B) Liquidity Position
604. XYZ Ltd. has a Debt Equity Ratio of 1.5 as compared to 1.3 Industry average. It means that the firm has:
Higher Liquidity
Higher Financial Risk
Higher Profitability
Higher Capital Employed
Correct answer: (B) Higher Financial Risk
605. Debt Equity Ratio is 3:1,the amount of total assets Rs.20 lac, current ratio is 1.5:1 and owned funds Rs.3 lac. What is the amount of current asset?
Rs.5 lac
Rs.3 lac
Rs.12 lac
none of the above
Correct answer: (C) Rs.12 lac
606. Which one of the following is NOT a tool of financial forecasting ?
Cash budget
Capital budget
Pro forma Balance sheet
Pro forma Income statement
Correct answer: (B) Capital budget
607. The transaction motive for holding cash is for
A safety cushion
Daily operating requirements
Compensating Balance requirements
None of the above
Correct answer: (B) Daily operating requirements
608. Adequate working capital means
Sufficient funds
Insufficient funds
Lack of funds
All of the above
Correct answer: (A) Sufficient funds
609. The net working capital measures
Ability
Liquidity
Credibility
None
Correct answer: (B) Liquidity
610. A level of working capital which is required by the firm always is knows as