1. Working capital gap is not ...... (i) Current Assets less Current Liabilities, (ii) Current Assets less Current Liabilities other than Bank Borrowings, (iii) 75% of Current Assets a. Only (i) and (ii) b. Only (i) and (iii) c. Only (ii) and (iii) d. (i), (ii) and (iii) Ans - b
2. A company has Fixed Assets worth Rs. 20 lac and current assets are Rs. 60 lac, current liabilities are Rs. 40 lac. There is no intangible assets or the non current assets. Calculate it's net working capital. a. 20 lac b. 30 lac c. 40 lac d. 60 lac Ans - a NWC = CA - CL we have CA = 60 lac and CL = 40 lac NWC = 60 - 40 = 20 lac
3. The amount of instalment of a term loan is fixed at Rs. 16000/- per month and the monthly average interest on the account is Rs. 7500/-. If the amount of depreciation is Rs. 33000/- p.a. and profit after tax Rs. 300000/-. What is DSCR ? a. 1.5 b. 1.75 c. 2 d. 2.5 Ans – a DSCR = (Interest + PAT + Depreciation + other non cash expenses) / (interest + installment on TL) = (7500×12+300000+33000)/(7500×12+16000×12) = 423000/282000 = 1.5
4. Current ratio of a unit is 2:1 and quick ratio is 1:1. The level of current assets is Rs. 20 lac. What is the amount of quick asset? a. Rs. 5 lac b. Rs. 10 lac c. Rs. 15 lac d. Rs. 20 lac Ans - b Solution : CR = CA:CL CA:CL = 2:1 20: CL= 2:1 CL = 10 lac Now QR = 1:1 QR = Quick asset/CL Quick asset/CL = 1:1 QA = CL = 10 lac
5. No loan related and ad-hoc service charges/inspection charges should be levied on priority sector loans up to ...... a. Rs. 10,000 b. Rs. 25,000 c. Rs. 40,000 d. Rs. 50,000 Ans - b
6.The priority target is mentioned as a percentage of ...... a. Adjusted Net Bank Credit (ANBC) b. Credit Equivalent Amount of Off-Balance Sheet Exposure (OBE) c. Whichever is higher as on March 31 of the previous year d. None of the above Ans - c
7. The overall priority sector target foreign banks is ...... a. 20% b. 32% c. 40% d. 50% Ans - b
8. Foreign banks with less than 20 branches have to achieve the priority sector target of 40% in a phased manner but within ...... a. 2018 b. 2019 c. 2020 d. 2021 Ans - c
9. Bank loans up to a limit of Rs.5 crore per borrower for building social infrastructure will be eligible for categorization as priority sector for following activities ...... (i) health care facilities, (ii) drinking water facilities, (iii) sanitation facilities a. Only (i) and (ii) b. Only (i) and (iii) c. Only (ii) and (iii) d. (i), (ii) and (iii) Ans – d
10. As per RBI latest guidelines, loans to cooperative societies of farmers for disposing of the produce of members upto Rs.... are covered under priority sector. a. 25 Lakhs b. 50 Lakhs c. 1 Crore d. 5 Crores Ans – d
11. Industries & business enterprises whose turnover for the accounting period exceeds Rs.50 crore has to submit segment-wise reporting as per ... a. AS-3 b. AS-7 c. AS-17 d. AS-21 Ans – c
12. No penal interest should be charged to borrowers of loan under priority sector upto Rs. a. 10000 b. 20000 c. 25000 d. 50000 Ans - c
13. Advances against pledge/hypothecation of agricultural produce sanctioned to farmers on or after 01.04.2013 upto Rs.... are covered under priority sector. a. 10 Lakhs b. 15 Lakhs c. 25 Lakhs d. 50 Lakhs Ans - d
14. No collateral security is required for loan under MSME for manufacturing/production and providing or rendering of services upto Rs. a. 1 lakh b. 2 lakhs c. 5 lakhs d. 10 lakhs Ans - C
15. Which one is not a Basic concept used in preparing of financial statements ? a. Entity concept b. Money Market concept c. Going Concern concept d. Accural concept Ans - b
16. Which one doesn't come under Liability ? a. Share capital b. Reserve & surplus c. Miscellaneous expenditure d. current liability & provisions Ans - c
17. Which accounting standard makes it mandatory for some enterprises to prepare cash Flow Statement for the accounting period ? a. AS-1 b. AS-3 c. AS-9 d. AS-17 Ans -b
18. Which one doesn't come under Current liabilities ? a. Advance payments received b. pre-paid expenses c. unclaimed dividend & dividends d. provisions for taxes Ans - b
19. Given, Recoveries of loan and advance - Rs. 1200 Crores Misc capital receipt - Rs. 600 Crores Market loans - Rs. 500 Crores Short term borrowings - Rs. 800 Crores External assistance (Net) - Rs. 300 Crores State provident fund - Rs. 400 Crores Other receipts (Net) - Rs. 800 Crores Securities issued against small savings - Rs. 300 Crores Recoveries of short term loans and advances from states and loans to govt servants - Rs. 600 Crores Total Non Tax Revenue - Rs. 3000 Crores Net Tax Revenue - Rs. 1000 Crores Draw down cash balance - Rs. 2000 Crores Calculate Capital Receipt ... a. Rs 2700 Crores b. Rs 3900 Crores c. Rs 4300 Crores d. Rs 5100 Crores Ans - c Solution : Capital Receipt = Non Debt Receipt + Debt Receipt Let us first calculate Non Debt Receipt, Non Debt Receipt = Recoveries of loan & advances (deduct recoveries of short term loans & advance from state and loans to govt servants) + Misc Capital receipts = 1200-600+600 = 1200 Crores Now, let us calculate Debt receipt, Debt Receipt = Market Loans + Short Term Borrowings + External assistance(NET) + Securities issued against Small savings + State provident fund + other Receipts(Net) = 500 + 800 + 300 + 300 + 400 + 800 = 3100 Crores Capital Receipt = Non Debt Receipt + Debt Receipt = 1200 + 3100 = 4300 Crores
20. ...... is the rate of interest which a central bank charges on the loans and advance that it extends to commercial banks and other financial intermediaries. a. MCLR Rate b. Bank Rate c. CRR d. Repo Rate Ans - b