1. ..... is the rate at which banks park their short term excess liquidity with the RBI. a. Reverse Repo rate b. Repo Rate c. OMO d. Bank rate Ans – a
2. The DER 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 ? a. 3 lac b. 5 lac c. 12 lac d. 15 lac Ans – c
3. Revenue reserve represents accumulated retained earnings from the profits of normal business operations. These are held in various form that is given below. Pick up odd one. a. General reserve b. Investment allowance reserve c. Advance payment received d. Capital redemption reserve Ans – c
4. Frequency of review should vary depending on the magnitude of risk for the average risk account. a. 01 month b. 03 months c. 06 Months d. 12 Months Ans – c
5. In case of company, the charge should be registered with ROC within ...... days from the date of execution of documents a. 15 days b. 30 days c. 45 days d. 2 months Ans – b
6. A firm has the following financial figures from its balance sheet : Capital→ Rs 12 lac Reserve → Rs 4 lac Unsecured loan→ Rs 5 lac Current assets → Rs 16 lac Pre operative expenses→ Rs 2 lac Its net worth = ? a. 12 lac b. 14 lac c. 16 lac d. 18 lac Ans – b
7. A company has net worth of Rs 10 lac, term liabilities are Rs 10 lac. Fixed Assets worth Rs 16 lac and current assets are Rs 25 lac. There is no intangible assets or the non current assets. Calculate it's net working capital. a. 1 lac b. 2 lac c. 3 lac d. 4 lac Ans - d Let me Explain Here Net worth = capital + reserve = 10 lac Since capital is a kind of liability hence liability = 10 lac Liabilities = 10+10 = 20 lac Assets= 16+25= 41 lac But as per balance sheet , Total assets = Total liabilities Hence liabilities must be 41 lac Also in 41 lac ( 41-20= 21 ) i.e 21 lac will be CL NWC = CA-CL = 25 - 21 = 4 lac
8. A company has total assets at 1,50,000 and its total liabilities are 50,000. Based on the accounting equation, we can assume the total equity is 1,00,000. Find the Debt Ratio. a. 0.33 b. 0.5 c. 0.67 d. 0.75 Ans - a Solution : DR = TL / TA = 50000 / 150000 = 0.33
9. Seela's Tech Company is a tech start up company that manufactures a new tablet computer. Seela is currently looking for new investors and has a meeting with an angel investor. The investor wants to know how well Seela uses her assets to produce sales, so he asks for her financial statements. Here is what the financial statements reported: Beginning Assets: 50,000 Ending Assets: 1,00,000 Net Sales: 25,000 The total asset turnover ratio is ...... a. 0.33 b. 0.5 c. 0.67 d. 0.75 Ans - a Solution : Asset Turnover Ratio or Total Asset Turnover Ratio = Net Sales / Average Total Assets = 25000 / ((50000+100000)/2) = 25000 / (150000/2) = 25000 / 75000 = 0.33
10. In MICR Code how many digits are available? a. 13 b. 11 c. 10 d. 9 Ans – d
11. A loan for which only interest is paid during its repayment period while the principal is repaid at the end is called ...... a. Term loan b. Interest demand loan c. Lumpsum payment loans d. Balloon repayment loan Ans – d
12. Corporation tax - Rs. 1000 Crores Income tax - Rs. 800 Crores Other taxes and duties - Rs. 600 Crores Customs - Rs. 800 Crores Union exercise tax - Rs. 600 Crores Service tax - Rs. 500 Crores Tax of union territories- Rs. 300 Crores Interst receipt - Rs. 500 Crores Dividend & profit - Rs. 700 Crores External grant - Rs. 300 Crores Other non tax revenue - Rs. 1000 Crores State Share - Rs. 600 Crores Receipt of union territories - Rs. 800 Crores Trf to NCCD (National calamity Contingency fund) - Rs. 300 Crores calculate Net Tax revenue ... a. Rs 2900 Crores b. Rs 3700 Crores c. Rs 4000 Crores d. Rs 4600 Crores Ans - b Solution : Net Tax Revenue = Gross tax revenue - NCCD transferred to the National Calamity Contingency fund - state share Gross Tax revenue = Corporation Tax + Income tax + other tax & duties + customs + union excise duties + service Tax + taxes on union territories = 1000+800+600+800+600+500+300 = 4600 Crores Net Tax Revenue = Gross tax revenue - NCCD transferred to the National Calamity Contingency fund - state share = 4600-300-600 = 3700 Crores
13. Pick odd man out a. Securities issued against Small Savings b. Recoveries of Loans & Advances c. State Provident Funds d. Other Receipts Ans – b
14. Govind's Furniture Company sells industrial furniture for office buildings. During the current year, it reported cost of goods sold on its income statement of 10,00,000. Govind's beginning inventory was 30,00,000 and its ending inventory was 40,00,000. Govind's turnover is ...... times. a. 0.25 b. 0.29 c. 0.33 d. 0.37 Ans - b Solution : Inventory Turnover Ratio = Cost of Goods Sold / Average Inventory = 1000000 / ((3000000+4000000)/2) = 1000000 / (7000000/2) = 1000000 / 3500000 = 0.29 Times This means that Govind only sold roughly a third of its inventory during the year. It also implies that it would take Govind approximately 3 years to sell his entire inventory or complete one turn. In other words, Govind does not have very good inventory control.
15. Raju's Furniture Company sells industrial furniture for office buildings. During the current year, Raju reported cost of goods sold on its income statement of 25,00,000. Raju's beginning inventory was 40,00,000 and its ending inventory was 60,00,000. Calculate Raju's Furniture Company's Inventory Turnover Ratio. a. 0.25 b. 0.33 c. 0.5 d. 0.67 Ans - c Solution : Inventory Turnover Ratio = Cost of goods sold / Average inventory for that period = 2500000 / ((4000000 + 6000000)/2) = 2500000 / 5000000 = 0.5
16. Summary of a Balance sheet of XYZ Company Current Liabilities (in Crores) Cash Credit - 3200 Trade Creditors - 9500 Other Current Liabilities - 2000 Total Current Liabilities - 14700 Current Assets (in Crores) Cash - 5000 Inventory - 14000 Debtors - 4200 Other Current Assets - 2000 Total Current Assets - 25200 Find out 1. Current Ratio a. 1.61 b. 1.71 c. 1.81 d. 1.91 Ans - b Current Ratio = CA/CL = 25200/14700 = 1.71 2. Acid-Test Ratio a. 0.71 b. 0.76 c. 0.81 d. 0.86 Ans - b Acid-Test Ratio = Quick Assets/CL = (CA-Inv)/CL = (25200-14000)/14700 = 11200/14700 = 0.76 3. Net Working Capital a. 10000 b. 10500 c. 11000 d. 11500 Ans - b Net Working Capital = CA - CL = 25200 - 14700 = 10500 4. Working Capital Gap a. 12700 b. 13200 c. 13700 d. 14200 Ans - c Working Capital Gap = CA - (CL - BB) = 25200 - (14700 - 3200(CC)) = 25200 - 11500 = 13700 5. MPBF as per Tandon Committee - Method-I a. 10275 b. 10775 c. 13700 d. 17300 Ans - a = WCG - 25% of WCG = 13700 - 25% of 13700 = 13700 - 3425 = 10275 6. MPBF as per Tandon Committee - Method-II a. 6200 b. 6700 c. 7200 d. 7400 Ans - d = WCG - 25% of CA = 13700 - 25% of 25200 = 13700 - 6300 = 7400 7. Current Ratio as per Tandon Committee - Method-I a. 1.01 b. 1.06 c. 1.11 d. 1.16 Ans - d = CA / (MPBF + Trade Creditors + Other CL) = 25200 / (10275+9500+2000) = 25200 / 21725 = 1.16 8. Current Ratio as per Tandon Committee - Method-II a. 1.07 b. 1.09 c. 1.23 d. 1.33 Ans - d = CA / (MPBF + Trade Creditors + Other CL) = 25200 / (7400+9500+2000) = 25200 / 18900 = 1.33 9. Borrowing by the way of Cash Credit when compared with Tandon Committee - Method-I a. 7025 b. 7075 c. 7125 d. 7175 Ans - b Borrowing by the way of Cash Credit = 3200 MPBF as per Tandon Committee - Method-I = 10275 So, Borrowing by the way of Cash Credit is short by (10275 - 3200) = 7075 Crores 10. Borrowing by the way of Cash Credit when compared with Tandon Committee - Method-II a. 4200 b. 4600 c. 5000 d. 5400 Ans - a Borrowing by the way of Cash Credit = 3200 MPBF as per Tandon Committee - Method-II = 7400 So, Borrowing by the way of Cash Credit is short by (7400 - 3200) = 4200 Crores
17. Working capital turn over ratio is 4 and current ratio is 3:1. If current liabilities are Rs. 15 lac and net profit to sales percent 7%, what is the amount of net profit? a. Rs. 10.2 lac b. Rs. 11.4 lac c. Rs. 12.6 lac d. Rs. 13.8 lac Ans - c Solution : Since CR=3:1 and current liabilities are Rs. 15 lac Current assets will be Rs. 45 lac Now since wc turn over ratio is 4 that means the total turn over will be 45 × 4 = 180 lac Then profit should be 180 × 7% = 12.6 lac
18. Given, Corporation tax - Rs. 1800 Crores Income tax - Rs. 1200 Crores Union exercise tax - Rs. 1100 Crores Other non tax revenue - Rs. 1500 Crores Other taxes and duties - Rs. 1000 Crores Customs - Rs. 1300 Crores External grant - Rs. 400 Crores Service tax - Rs. 750 Crores Tax of union territories- Rs. 400 Crores Interst receipt - Rs. 750 Crores Dividend & profit - Rs. 900 Crores State Share - Rs. 900 Crores Receipt of union territories - Rs. 1200 Crores Trf to NCCD (National calamity Contingency fund) - Rs. 450 Crores calculate Net Tax revenue. a. Rs 5800 Crores b. Rs 6200 Crores c. Rs 6650 Crores d. Rs 7100 Crores Ans - b Solution : Net Tax Revenue = Gross tax revenue - NCCD transferred to the National Calamity Contingency fund - state share Gross Tax revenue = Corporation Tax + Income tax + other tax & duties + customs + union excise duties + service Tax + taxes on union territories = 1800+1200+1000+1300+1100+750+400 = 7550 Crores Net Tax Revenue = Gross tax revenue - NCCD transferred to the National Calamity Contingency fund - state share = 7550-450-900 = 6200 Crores
19. Which of the following is not the type of smart cards? a. Stored Value Cards b. Re-loadable and disposable cards c. Closed and open stored value cards d. None of these Ans - d
20. In RTGS, IDL is a. Intra Day Liquidity b. Inter-bank Debit List c. Instrument Debit List d. None of these Ans - a