SOLVED JAIIB COMBINED PAPER 25:
1. A company invested Rs. 5 lac from its liquid assets of the business in an associate firm, due to which its current ratio came down from 2:1 to 1.5:1. What is the amount of current assets after this investment?
a. Rs. 15 lac
b. Rs. 12 lac
c. Rs. 10 lac
d. Rs. 5 lac
Ans - a
2. For a seasonal industry unit like sugar, tea etc. for knowing immediate liquidity position, bank would need......
(i) A fund flow statement, (ii) A cash flow statement
a. Only (i)
b. Only (ii)
c. Either (i) or (ii)
d. Both (i) and (ii)
Ans - b
3. If there is a surplus of cash in cash flow statement, it is not a ......
(i) Satisfactory position,
(ii) Strong position,
(iii) Weak position
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - c
4. A firm sells 4000 units and earns profit of Rs. 80000. If fixed cost is Rs. 60000, what is the break even no. of units?
a. 2000
b. 2500
c. 3000
d. 3500
Ans - c
5. Which of the following are not current assets ?
(i) Furniture and fixtures,
(ii) Plant and Machineries,
(iii) Receivable of 2 years old, slow moving stock
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - a
6. In a Balance Sheet amount of total assets is Rs. 10 lac, current liabilities Rs. 5 lac and capital and reserves Rs. 2 lac. What is the funded debt equity ratio......
a. 1:1
b. 1.5:1
c. 2:1
d. None of the above
Ans - b
7. A company had selling price per unit of Rs.100. Its Break even point units are 2000. If variable cost is Rs.60, what is the fixed cost?
a. Rs. 50000
b. Rs. 60000
c. Rs. 70000
d. Rs. 80000
Ans - d
8. Cost of the goods - Rs. 99000, Opening Stock - Rs. 13500, Purchases - Rs. 75000, Sales - Rs. 112500. Find other expenses.
a. 10000
b. 10500
c. 13500
d. 24000
Ans - b
9. The debt-equity ratio of a firm has shown increase (increase in long term sources) along with its current ratio. Which of the following is certainly true?
a. Sources of funds have been utilized for purchase of fixed assets
b. Sources of funds have been used for payment of current liabilities
c. Sources of funds have been used for payment of current assets
d. (b) & (c) both
Ans - d
10.Contribution is not equal to......
(i) Variable cost less fixed cost,
(ii) Sales less variable cost, (iii) Sales less fixed cost
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - b
11. The profit and Loss Account is not an account......
(i) For one particular date,
(ii) For one particular accounting year,
(iii) An account for a particular month
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - b
12. Rights shares mean the shares which are ......
a. Issued to directors of the company
b. Issued for a consideration other than cash
c. Offered to the exiting shareholders
d. Issued to promoters of the company for their services
Ans - c
a. Rs. 15 lac
b. Rs. 12 lac
c. Rs. 10 lac
d. Rs. 5 lac
Ans - a
2. For a seasonal industry unit like sugar, tea etc. for knowing immediate liquidity position, bank would need......
(i) A fund flow statement, (ii) A cash flow statement
a. Only (i)
b. Only (ii)
c. Either (i) or (ii)
d. Both (i) and (ii)
Ans - b
3. If there is a surplus of cash in cash flow statement, it is not a ......
(i) Satisfactory position,
(ii) Strong position,
(iii) Weak position
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - c
4. A firm sells 4000 units and earns profit of Rs. 80000. If fixed cost is Rs. 60000, what is the break even no. of units?
a. 2000
b. 2500
c. 3000
d. 3500
Ans - c
5. Which of the following are not current assets ?
(i) Furniture and fixtures,
(ii) Plant and Machineries,
(iii) Receivable of 2 years old, slow moving stock
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - a
6. In a Balance Sheet amount of total assets is Rs. 10 lac, current liabilities Rs. 5 lac and capital and reserves Rs. 2 lac. What is the funded debt equity ratio......
a. 1:1
b. 1.5:1
c. 2:1
d. None of the above
Ans - b
7. A company had selling price per unit of Rs.100. Its Break even point units are 2000. If variable cost is Rs.60, what is the fixed cost?
a. Rs. 50000
b. Rs. 60000
c. Rs. 70000
d. Rs. 80000
Ans - d
8. Cost of the goods - Rs. 99000, Opening Stock - Rs. 13500, Purchases - Rs. 75000, Sales - Rs. 112500. Find other expenses.
a. 10000
b. 10500
c. 13500
d. 24000
Ans - b
9. The debt-equity ratio of a firm has shown increase (increase in long term sources) along with its current ratio. Which of the following is certainly true?
a. Sources of funds have been utilized for purchase of fixed assets
b. Sources of funds have been used for payment of current liabilities
c. Sources of funds have been used for payment of current assets
d. (b) & (c) both
Ans - d
10.Contribution is not equal to......
(i) Variable cost less fixed cost,
(ii) Sales less variable cost, (iii) Sales less fixed cost
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - b
11. The profit and Loss Account is not an account......
(i) For one particular date,
(ii) For one particular accounting year,
(iii) An account for a particular month
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - b
12. Rights shares mean the shares which are ......
a. Issued to directors of the company
b. Issued for a consideration other than cash
c. Offered to the exiting shareholders
d. Issued to promoters of the company for their services
Ans - c