SOLVED JAIIB COMBINED PAPER 28:
1. For a real property developer, a plot of land is......
(i) A fixed assets, (ii) A current assets
a. Only (i)
b. Only (ii)
c. Either (i) or (ii)
d. Both (i) and (ii)
Ans - b
2. The contingent liabilities are not ......
(i) Expenses not provided, liability on account of letter of credit, letter of guarantee, provisions not made etc.,
(ii) Current liabilities, which are to be repaid immediately,
(iii) Net worth of the party
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - c
3. Sales - Rs. 90000, Gross profit - Rs. 30000, Net Profit - Rs. 18000. Find Operating expenses.
a. 12000
b. 18000
c. 42000
d. 60000
Ans - a
4. Long term liabilities of the organisation are......
(i) Capital and reserves,
(ii) Term Loans from institutions,
(iii) Long term unsecured loans
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
5. Funded Debt equity ratio is 3:1 and the amount of total assets Rs. 20 lac, Current Ratio is 1.5:1 and owned funds Rs. 3 lac. What is amount of current assets?
a. Rs. 5 lac
b. Rs. 3 lac
c. Rs. 12 lac
d. None of the above
Ans - c
6. Acid test ratio is not computed as......
(i) Current Assets divided by Current Liabilities,
(ii) Current Assets:Current liabilities,
(iii) Current Assets less stocks and then divided by current liabilities
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - a
7. The Current Assets are not those assets......
(i) which can be converted into cash during accounting period of one year,
(ii) which can be sold in the market as current goods,
(iii) which can be kept moving
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - c
8. Which of the following are current liabilities for the purpose of current ratio?
(i) Sundry Creditors and expenses payable,
(ii) Working Capital raised from the bank and term loan installment payable within one year,
(iii) Provisions
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
9. Which of the following statements is true?
(i) Balance sheet depicts the financial position of a particular borrowing unit on a particular date,
(ii) It tells about financial position for the whole year
a. Only (i)
b. Only (ii)
c. Either (i) or (ii)
d. Both (i) and (ii)
Ans - a
10. The fixed assets are those which......
(i) are used indirectly for the business,
(ii) are not generally sold,
(iii) cannot be converted into cash easily
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
11. Long term liabilities should not be invested only in......
(i) In Current Assets,
(ii) In Fixed Assets,
(iii) Partly in Current Assets and fixed assets
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - a
12. A Balance sheet shows total liabilities at Rs. 10 lac, current liabilities at Rs. 5 lac and long term debt Rs. 2 lac and debit balance of profit and Loss account at Rs. 1 lac. The net worth is......
a. Rs. 2 lac
b. Rs. 4 lac
c. Rs. 3 lac
d. None of the above
Ans - a
(i) A fixed assets, (ii) A current assets
a. Only (i)
b. Only (ii)
c. Either (i) or (ii)
d. Both (i) and (ii)
Ans - b
2. The contingent liabilities are not ......
(i) Expenses not provided, liability on account of letter of credit, letter of guarantee, provisions not made etc.,
(ii) Current liabilities, which are to be repaid immediately,
(iii) Net worth of the party
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - c
3. Sales - Rs. 90000, Gross profit - Rs. 30000, Net Profit - Rs. 18000. Find Operating expenses.
a. 12000
b. 18000
c. 42000
d. 60000
Ans - a
4. Long term liabilities of the organisation are......
(i) Capital and reserves,
(ii) Term Loans from institutions,
(iii) Long term unsecured loans
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
5. Funded Debt equity ratio is 3:1 and the amount of total assets Rs. 20 lac, Current Ratio is 1.5:1 and owned funds Rs. 3 lac. What is amount of current assets?
a. Rs. 5 lac
b. Rs. 3 lac
c. Rs. 12 lac
d. None of the above
Ans - c
6. Acid test ratio is not computed as......
(i) Current Assets divided by Current Liabilities,
(ii) Current Assets:Current liabilities,
(iii) Current Assets less stocks and then divided by current liabilities
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - a
7. The Current Assets are not those assets......
(i) which can be converted into cash during accounting period of one year,
(ii) which can be sold in the market as current goods,
(iii) which can be kept moving
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - c
8. Which of the following are current liabilities for the purpose of current ratio?
(i) Sundry Creditors and expenses payable,
(ii) Working Capital raised from the bank and term loan installment payable within one year,
(iii) Provisions
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
9. Which of the following statements is true?
(i) Balance sheet depicts the financial position of a particular borrowing unit on a particular date,
(ii) It tells about financial position for the whole year
a. Only (i)
b. Only (ii)
c. Either (i) or (ii)
d. Both (i) and (ii)
Ans - a
10. The fixed assets are those which......
(i) are used indirectly for the business,
(ii) are not generally sold,
(iii) cannot be converted into cash easily
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
11. Long term liabilities should not be invested only in......
(i) In Current Assets,
(ii) In Fixed Assets,
(iii) Partly in Current Assets and fixed assets
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - a
12. A Balance sheet shows total liabilities at Rs. 10 lac, current liabilities at Rs. 5 lac and long term debt Rs. 2 lac and debit balance of profit and Loss account at Rs. 1 lac. The net worth is......
a. Rs. 2 lac
b. Rs. 4 lac
c. Rs. 3 lac
d. None of the above
Ans - a