Question No. 1 Which of the following is NOT a ‘Capital Receipt’ for ‘Ayush Charitable Dispensary? 1. Life membership fees received 2 Interest received on Investments (Out of Building Fund) 3. Interest received on Investments (Out of General Fund) 4. Endorsement fund receipts Question No. 2 Which of the following items do NOT appear in the ‘Receipt and Payment’ ic of a Not for Profit Organization? 1. Prepaid Salary (at the end of the year) 2. Advance Subscription (at the end of the year) 43. Sale of a machine (Book Value & 10,000 Sold at a loss of ¥ 2000) 4, Accrued Interest on Investments (at the end of the year) Question No. 3 Pragyan Sports Academy has 1000 members each paying a subscription of Rs. 100 per month. During the yeer 10 members paid subscription for next year as well and 15 members did not pay their subscription for last 6 months. What amount of subscription will be debited in Receipt and Payments A/c? 1. 12,00,000 2.3 12/03,000 3.%11,97,.000 4,3 11,94,000Question No. 4 Given below are two statements: Statement |: Receipt and Payment A/c is prepared at the end of the year on the basis of cash receipt and cash payments recorded in Cash Book Statement Il: Receipt and Payment A/c is prepared on “Accrued asic’ of Accounting In the light of the above statements, choose the most appropriate answer from the options given below: 1. Both Statement | and Statement Il are correct 2..Both Statement | and Statement Il are incorrect, 3, Statement! is correct but Statement I 4, Statement | is incorrect but Statement Ilis correct cored. Question No. 5 ‘Match List | with List I ise lisew |Aincome and Expenditure A/e | Capital Receipt 8. Government Grant I. Accrued Basis Ic. Less onsale of Machine ll, Revenue Receipt ID. interest received on Building IV. income and ffund investment lexpenditure Choose the correct answer from the options given bel 1.A-IL B=IIl,C-1V, 0-1 A-IWB-L.C-Wy,D-m A=W, B~Ill, C-1,D-Il 4.A=IL 8-1 C=tll, D=VQuestion No. 6 Given below are two statements: Statement I: Endowment fund is ari which is devoted for a specific purpose 19 from a bequest or gift, the income of Statement Il: The Endowment fund receipts are chown on the liabilities side of the Balance Sheet as an item of the Specific purpose fund and its principle amount can be used in the course of any expenditure from that fund, In the light of the above statements, choose the most appropriate answer from the options given below: 1 Both Statement | and Statement Il are correct 2. Both Statement | and Statement Il are incomect, 3. Statement| ic correct but Statement Il is incorrect 4, Statement | is incorrect but Statement Ilis correct Question No.7 Given below are two statements: Statement Profit and Loss A/c of the firm is prepared to ascertain the final figure of either Profit or Loss to be distributed among the partners in their profit sharing ratio. Statement il Profit and Loss Appropriation A/c is prepared to show how the profits are appropriated, distributed among the partners In the light of the above statements, choose the most appropriate answer from the options given below: 1. Both Statement | and Statement Il are correct 2..Both Statement | and Statement Il are incorrect 43. Statement lis correct but Statement Il is incorrect, 4. Statement lis incorrect but Statement Ilis correctQuestion No. 8 ‘Anmol, a partner withdrew Rs. 1000 per month for 6 months (1% April 30® September at the beginning of each month, Interest on a drawing isto be charged © 12% pa Calculate the interest on drawings to be charged from Anmol on 31"* March as the frm prepares the financial statements on 31 March every year. 1.3210 2.3780 3.5570 4.3420 Question No. 9 ‘Mango and Banana are partners sharing profts in 32. ‘Their capitals were Re. 5,00,000 and Rs. 2,00,000 respectively. As per their partnership deed, Mango ‘was entitled to a salary of Rs. 10,000 pe. Banana was entitled to rent of Rs. 20,000 pa. for his personal property that he had let out to the firm, They were also entitled to interest on their capitals @ 10% p.a. ‘The firm earned a profit of Fs. 1,60,000 before the above adjustments. What amounts will be credited to ‘Mango and Banana's Capital A/c they follow a fluctuating capital system? 1, Mango € 90,000, Banana % 50,000 2.Mango & 110.000, Banana 2 50,000 3. Mange % 96,000, Banana & 64,00 4. Mango € 87,500, Banana & 52,500,Question No. 10 A,B, and C are partners sharing profits in 3:2:1. B had guaranteed that the firm would earn a minimum profit of Rs. 60,000 before any appropriation. At the end of the year, the firm eamed a profit of Rs. 48000 before any appropriation. What amounts (Net) will be credited to the Partner's Capital Ales? 1.4.8 30,000, B & 20,000, C 210.000 2.4 24,000, B 3 16,000, C 78000 3.4% 30,000, B 7 2000, C1000 4. % 24,000, B ¥ 20000, ¢ *4000 Quest mn No. 11 Given below are two statements: one is labeled as Assertion A and the other is labeled as Reason R ‘Assertion A: In order to form a partnership, there should be at leest two persons coming together for a common goal. The maximum number of pariners are 50 (fifty) as prescribed by Central Government: Reason R: As per Sec.464 of the Companies Act 2013, ‘the Central Governments empowered to prescribe a ‘maximum number of partners but the mai number of partners cannot exceed 100. The central government has prescribed the maximum number of partners to be 50 In the light of the above statements, choose the most appropriate answer from the options given below: 1. Both A and R are correct and R isthe correct, explanation of A 2. Both Aand R are correct but R is NOT the correct explanation of A 3. Ais true buts false 4. Ais false but Ris tueQuestion No. 12 Given below are two statements: Statement i: General reserve appearing in the Balance Sheet at the time of reconstitution of the firm will always be distributed among the old partnersin the ld profit sharing rato. Statement If the partners decide to retain the General reserve, they may adjust it in the Capital, current accounts of the partners in their sacrifice/ gaining ratio by passing the following entry Gaining partner's capital/ current a/c Dr. XXX To Sacrificing partner's capital/current/c XXX In the light of the above statements, choose the most appropriate answer from the options given below: 1. Both Statement | and Statement Il are correct 2 Both Statement | and Statement Il are incorrect, 3, Statement | is correct but Statement Il 4 Statement is incorrect but Statement \orrect correct Question No. 13, Its better to use the ‘Weighted Average Profit ‘method of calculation of Goodwill when: 1. The profits show a rising trend only 2. The profits chaw a diminishing trend only 3. The profits may show either rising or diminishing trend 4, The profits don't show any rising or ciminishing trendQuestion No. 14 Given below are two statements: one is labeled as Assertion A and the other is labeled as Reason R Assertion At Purchased goodwill may be accounted for in the book and shown as an asset but it should be written off as early as possible Reason R: As 25 implies that the purchased goodwill can be shown as per asset but it should be written off as early as possible. if itis written off in more ‘than one accounting period, It should be written off in 2 period not exceeding Ten Years. In the light of the above statements, choose the most appropriate answer from the options given below: 1. Both A and R are correct and Ris the correct explanation of A 2. Both A and R are correct but Ris NOT the correct explanation of A 3. Ais correct but R is not correct 4,A\is not correct but is correctQuestion No. 15 Read the pateage and ancwer the questions that follows (Q15-Q19): Read the passage ancl answer the questions tat follows (Q15-019). Anwesha ané Bhumika are partners sharing profits In 5:4 Ther Balance sheet at sisz02 Balance Shoot Ar at 312.2022 [Liabilities a ‘amoune| ‘Bani e * 20000 |Capitel a/c’s (Fixed) Anwesha 40000 2 vn cnn “0 vm Istocke rn. = = They edited Krish as @ partner Anweshe surrendered 1/5" of her shave in favour of rsh. humic surrendered 1/9 of her share in favour of Krish ‘+ He brought Rs, $2000 a his cepital but could rot bring anything for his shave ‘ofthe premium for goodwil. Goodul of the fim was value at Rs. 180000 1 achinery was undervalued by 5% + Stocc was overvalued by 10% 1 A customer who owed us Rs 2000 was dedated bankrupt and nothing could be recovered rom his offical receiver, Naintair a provision for doubtful debts ‘of @10% cn debtors + There was contingent iility fora claim for damages Rs, 3000 that has now become 2 normal ability and isto be taken into acount + Thepartners decide 1o adjust thet capita based on Kish Anewer the following question based on the above information Whats the sacrificing ration of Annwesha and Bhumika? 19:4 25:4 Ba: aiaQuestion No. 16 Read the passage and answer the questions that follows (Q15-Q1 Read the passage and answer the questions that fllows (Q15-019} AAnwesha and Bhumika are partners sharing profits in 5:4. Th 313.2022 Balance Sheet at Balance Sheet As t 3132022 fuisbitities occa es ‘amour pet (28000 Debtors 12000 lcpitat ales (Free) Anwesha «tooo eroao frum soc00 | sooue (2 Pviion for Doubt debts hoo0e |) rectors 27000 naachiney pea ‘Stock aaa soe "000 They admitted Krth asa parner. Anwesha surrendered 1/5" of her share in favour otkrsh. ‘Bhumika surrendered 1/9 of her share in favour of Krish, ‘© He brought. 50000 as his capital but could not bring anything for his share ‘of the premium for goed, Good ofthe fry was valued at Rs, 180000 ‘Machinery was undervalued by 58 # Stock was overvalued by 10% © Accustemer who owed us Rs 2009 was decared bankrupt and nthing could be recovered from his oficial receiver, Maintain a provision fer doubtful debts {8f @10% on debtors 1 There was a contingent labilty fo! a claim for damages Rs. 3000 that has now become a normal liability and is te be taken into account 1 The partnete decide to just their capital bated on Kiih Answer the following question based on the abore information Which of the following is corect is related to the treatment of Goodwill? 4. Krish’ capital A/c is debited by & 120000 2 Kriss eurent A/c is debited by € 180000 2 Kits capital A/c ie debited by & 40000 4 Krishs curent A/c is debited by ¢ 40000Question No. 17 Read the passage and answer the questions that follows (Q15-Q19} Read the passage and arswer the questions that follows (215-019) Anwesha and Bhumika are partners sharing profits in St. Their Bslance Sheet at 3132022, Balance Sheet As at 3132022, fiabinies ee pa Tameuri} ‘oan penx 2a0¢0 [bebor= 42000 lcopitat a/cs (Fined) Anwecha (0000, locooo |phumikes 50200 | 30000 (1 Provision for Doubtful debrs 0000 lcreinors feo laste Pes pose jae. {ae "150000 Thay admited Krish as partner. Anwesha surendered 1/5! of her share in favour of ksh ‘Bhumika surendered 1/3 of her share in favour of Kash ‘+ He brought Rs, 50000 as his capital but could not bring anything for his share ‘of he premium for gcodwil. Gooaul of the tm was Valued at RS, 130000 ‘+ Machinery was undervalued by 5% ' Stock was overvalued by 10% ‘© A customer iho owed us Rs, 2000 was dedared barkrupt and notring could be recovered from his oficial receives, Vaitain a provision for doubtful debts of @10% on debtors, 1 There wae 8 contingantlsbilty fora clin for damages Re 2000 that has now ‘become 2 normal ablity and is tobe taken into account, 1 The partners decide to asjust their capital based on Krish Answer te fllowina question based cn the above information The change in the value of Machines €_ Revaluation Ale and willbe _in 1.2000 Debited 2 2000, Credited 3 1800 Debited 41900, CreditedQuestion No. 18 Read the passage and answer the questions that follows (Q15-Q12): Read the passage and anewer the questions that follows (Q15-Q19; Aanwatha and shumika are partners chasing profits in S: Ther Balance Shest at 313.2022 Balance Sheet Ae at 1.22002 [isbiiios Amountiscote “amaunt] pe 20000 Debtors 42000 (Cepital a/es (Fked) Anwesha yeonne, ‘20000 [Bhumika soo00| + s00co |¢) Provision for Doubthul debts 30000 0 (creditors i) 70000 pachinery is |ock aa + 50000 "50000 They admited Krish as 2 partner. Anwesha surrendered 1/5 cf her share in favour of ksh Bhumika surendered 1 of her shaven favour of Krish ‘+ He brought Rs. 50000 as his capital but could not tring anything for his share ofthe premism for goodwil. Goodwill ofthe frm was valued at Rs, 160000 ‘+ Machinery was undervalued by 5% Stock mas overvalued by 10% ‘= R castomer who owed us Rs, 2000 was declared bankrupt and nething could bbe recovered frm his cific receiver. Maintain « provision for doubtul debts of © 10% on debtors ‘There was @ contingent laity fora ceim for damages Rs. 000 thathas now become 2 normal iatilty and sto be taken into account. ' The partners decide to adjust ther capital based on Krish. Answer the fllowira question based on the above information The changein thevalueof Steck is% andi be in 4.4400, Debited 2.4400, Credited 3.4000, Debited 4.4000, CreditedQuestion No. 19 Read the passage and anewer the questions that fellows (Q15-Q19}: Read the passage anc answer the questions tat follows (Q1-C19} Anwesha and Bhumika are partners sharing profits in $4. Their Balance Sheet at a1.a2022 Salance Sheet As at 31.2020, (ister Dameunavcote Iamaun] in 20000 Debtors 42000 Kartel a/e's (ned) Anwesha) aad leocoo Jshurka Se000 {© Frovision tor Boubtul debs +3000 2000 Kceditors Lo 20000 chinany waa stock jtsone (50000 150000 They acimitted Krish asa partner. Arwesha surrendered 1/5 of her share in favour oF Kien Shuma sucrendered 1/9 of her shat in favour of Kish « He-eroughe Fs, $0000 as his cepa but could not ering anything fr his share ‘ofthe premium fer Goodwill Gaeduill ofthe Sem was valued a Rs. 180060 Machinery was undervalued by 58 Stockwas overvalued by 10% ‘Accusiomer who ewed us Re 2000 wise declares tarieupt end nothing coule be recovered from ni ori receher. Maintain a provislon for doubtTu seots ‘of @10% on debtors + There was contingent lity fr » claim for damages Rs. 2000 thet has now become normal iasilty andi 0 be taken inte account 1 The parmers decide 0 adust tn capital based on Kish Arswer the folowing question besed on the above information ‘The Revaluation A/c’ shows a loss of €_ and willbe borne by onmesha and Bhurika in 4.9000, 5:4 2.9000, 11 3.11300 5:4 4.11200, 107Question No. 20 ‘A.B and C are partners sharing profits in 3:2:1 B retires, and the balance of his capital A/C after adjusting reserves and his share of goodwill was Rs. 240000. The remaining partners gave B an unrecorded, vehicle valued at Rs. 60000 and the balance payable to B was discharged by giving a Bank draft. What will be the amount of the Bank Draft? 1.3 180,000 2.% 2,40,000 3.% 2,60,000 4.8 2,00,000 Question No. 21 A, 8, Care partners sharing profits in 7:3:2 € retires and his share was purchased by A and 8 by giving him (©) Rs. 10000 each from their capital a/c’s. What will be the new profit-sharing ratio of A and B? 1.2 27 3.41 43 Question No. 22 A,B, and Care partners sharing profits in 5:3:2. C retires from the business. Find out the new ratio? 1.53 2.32 32.52 aaaQuestion No. 23 Match List | with List II List | List 1 |A. Retiring partner's share of |. Old profit sharing ratio| lgoodwill Il. Gaining ratio IB. Revaluation A/c Profit lll, Revaluation A/c Debit! Ic. Admission of apartner Receipt [D.Unrecorded liability IV. Sacrificing ratio Choose the correct answer from the options given below: 1.A-I1,B=Ill,C-WV,D-1 2.A-I1,B-1,C-1V, D-II 3.A-IV, Bll, C-1, =I 4A-1,8-I, C- 1 D-IVQuestion No. 24 Given below are two statements Statement I; Profit and Loss Suspense A/c is opened to credit the deceased partner's capital a/c by his share of profit for the intervening period Statement Il: Profit and Loss Suspense A/< is always closed by transferring it to the remaining partners in their new profit sharing ratio In the light of the above statements, choose the most appropriate answer from the options given below: 1, Bath Statement | and Statement Il are correct 2. Both Statement | and Statement Il are incorrect 3. Statement | is correct but Statement Il is incorrect 4, Statement | is incorrect but Statement II is correct Question No. 25 A,B, Care partners. B retired and on the date of retirement Workmen's compensation fund was appearing in the books at Rs. 50000. The claim on account of workmen's compensation was Rs. 65000. The excess claim will be: 1. Debited to Revaluation A/c 2. Credited to Revaluation A/c 3. Debited to Remaining partner's capital/ current A/c in new ratio 4, Credited to Remaining partner's capital/ current A/c in new ratioQuestion No. 26 In which condition a partnership is considered to be compulsorily dissolved. 1. Death of a partner 2. The business of the firm becomes illegal 3. When there is a change in profit sharing ratio 4, Insolvency of a pertner Question No. 27 At the time of Dissolution ofa partnership firm, if partner's loan to the firm is discharged by giving an unrecorded asset, which of the following entries will be passed? 1. Partner's Loan a/c Dr. 2. Unrecorded asset a/c Dr. 3, Partner's Loan a/c Dr. 4. Unrecorded asset a/c Dr.Question No. 28 Given below are two statements: Statement I: At the time of the Dissolution of a partnership firm, the surplus of the partner's private property over his private debts can be applied towards the payment of the firm's dabts before the payment of his personal debts. Statement II: For private debts, only the concerned partner is liable personally In the light of the above statements, choose the most appropriate answer from the options given below: 1. Both Statement | and Statement II are correct 2. Both Statement | and Statement Il are incorrect 3, Statement | is correct but Statement II is incorrect 4, Statement | is incorrect but Statement Il is correct Question No. 29 At the time of Dissolution of a partnership firm, if the Realization expenses are supposed to be bore by a partner ‘A’ which account will be debited? 1. A's Capital A/c 2. Realization A/c 3. Cash Ae 4, Revaluation A/cQuestion No. 30 Given below are two statements: Statement I: When the directors of a Joint-stock company decide to ask for the ‘Call money’ they have to make sure that the amount called is not more than 25% of the ‘Issue price’ of the share. Statement II: There must be an interval of at least one month between the making of the two calls unless otherwise provided by the Articles of Associations of the company In the light of the above statements, choose the most appropriate answer from the options given below: 1, Both Statement | and Statement II are correct, 2. Both Statement | and Statement Il are incorrect 3, Statement | is correct but Statement Il is incorrect 4, Statement | is incorrect but Statement Il is correctQuestion No. 31 Match List I with List II List | List 11 |A. By the book of shares IB. Security premium Ic. Application Money ID. One person Company |. Bonus Shares Il See 2(62) of Companies Act 2013 lll Sec 68 of Companies Act 2013 IV. At least 5% of the face value Choose the correct answer from the options given below: 1.A-I, B=II,C=1,D -V 2.A-Ill, B-1,C-lv, D-II 3.A-IIl, B-IV, C-IL, A-W,B-1,C-1D D-! illQuestion No. 32 Which of the following statements related to Buy back of Shares are True? 1. An ordinary resolution must be passed in the AGM. 2. Debt Equity ratio must be lower than 2:1 3. Buy Back should not exceed 25% of the paid-up capital only, 4, Buy Back should be completed within 12 months from the date of passing the resolution Choose the most appropriate answer from the options given below: 1.B and E Only 2.B and C Only 3. Aand B Only 4.C and D Only Question No. 33 Parmanand limited forfeited 500 shares of Rs. 10 each (Rs. 8 called up) held by Satish for non-payment of the First call of Rs. 3 per share. 300 of these shares are reissued immediately in such a manner that Rs. 600 is transferred to Capital reserve A/c. What is the price at which the shares were reissued? 1.27 per share 2.% 5 per share 3. © 3 per share 4.%2 per shareQuestion No. 34 Read the passage and answer the following questions:- Ruby limited invited applications for 100000 shares of Rs. 100 each at a premium of 30% payable as follows: On Application Rs. 4 On Allotment Rs.5 On First Call Rs. 2 (On Second and Final Call Rs. 2 The public subscribed for two times the shares that were offered by the company. The directors decided to allot the shares to all the applicants on a pro-rata basis. Santosh who had applied for 6000 shares, did not pay anything after the Application. Her shares were forfeited after the final call ‘50% of the forfeited shares were reissued to Ashok as fully paid in such a manner that Rs. 1500 were transferred to Capital reserve a/c Answer the following question based on the above case study How many shares were allotted to Santosh? 4.12000 2.6000 3.3000 4.2000Question No. 35 Read the passage and answer the following questions:- Ruby limited invited applications for 100000 shares of Rs, 100 each at a premium of 30% payable as follows: On Application Rs. 4 On Allotment Rs.5 On First Call Rs. 2 On Second and Final Call Rs. 2 The pul offered by the company. The directors decided to allot the shares to all the applicants on a pro-rata basis. Santosh who had applied for 6000 shares, did not pay anything after the Application. Her shares were forfeited after the final call. 50% of the forfeited shares were reissued to Ashok as fully paid in such a manner that Rs. 1500 were transfered to Capital reserve a/c. subscribed for two times the shares that were What amount will be received by Ruby itd. at the time of Allotment? 1.27, 70, 000 2. 84,85, 000 3. % 97, 000 4,785, 000Question No. 36 Read the passage and answer the following questions:- Ruby limited invited applications for 100000 shares of Rs. 100 each at a premium of 30% payable as follows: On Application Rs. 4 On Allotment Rs.5 On First Call Rs. 2 On Second and Final Call Rs. 2 The public subscribed for two times the shares thet were offered by the company. The directors decided to allot the shares to all the applicants on a pro-rata basis. Santosh who had applied for 6000 shares, did not pay anything after the Application. Her shares were forfeited after the final call 50% of the forfeited shares were reissued to Ashok as fully paid in such a manner that Rs. 1500 were transferred to Capital reserve a/c. When Santosh’s shares were forfeited , what amount was transferred to ‘share forfeitore A/c? 1.% 24,000 2.% 21, 000 3.% 20, 000 4.318, 000Question No. 37 Read the passage and answer the following questions: Ruby limited invited applications for 100000 shares of Rs. 100 each at a premium of 30% payable as follows: On Application Rs. 4 On Allotment Rs.5 On First Call Rs. 2 On Second and Final Call Rs. 2 The public subscribed for two times the shares that were offered by the company. The directors decided to allot the shares to all the applicants on a pro-rata basis, Santosh who had applied for 6000 shares, did not pay anything after the Application. Her shares were forfeited after the final call 50% of the forfeited shares were reissued to Ashok as fully paid in such a manner that Rs. 1500 were transferred to Capital reserve a/c. How many shares of Santosh were reissued? 1, 3000 2.2000 3.1500 4.1000Question No. 38 Read the passage and answer the following questions:- Ruby limited invited applications for 100000 shares of Rs. 100 each at a premium of 30% payable as follows: On Application Rs. 4 On Allotment Rs.5 On First Call Rs. 2 On Second and Final Call Rs. 2 The public subscribed for two times the shares that were offered by the company. The directors decided to allot the shares to all the applicants on a pro-rata basis. Santosh who had applied for 6000 shares, did not pay anything after the Application. Her shares were forfeited after the final call. 50% of the forfeited shares were reissued to Ashok as fully paid in such @ manner that Rs. 1500 were transferred to Capital reserve a/c. At what price were the forfeited shares reissued? 1.36 per share 2.5 per share 3.34 per share 4.33 per shareQuestion No. 39 Given below are two statements: Statement |: Zero coupon rate debentures do not carry a specific rate of interest. They are issued at a substantial discount Statement Il: All the debentures are issued with 2 specific rate of interest. In the light of the above statements, choose the most appropriate answer from the options given below: 1. Both Statement | and Statement Il are correct 2. Both Statement | and Statement Il are incorrect 3, Statement | is correct but Statement Il correct 4, Statement | is incorrect but Statement Il is correct Question No. 40 Given below are two statements: Statement I: As per the Companies Act 2013, no company (engaged in any project) is allowed to issue debentures having a maturity of more than 10 years Statement I: A company engaged in infrastructure projects can issue debentures for a maturity period more than 10 years but not exceeding 30 years. In the light of the above statements, choose the most appropriate answer from the options given below: 1. Both Statement | and Statement Il are correct 2, Both Statement | and Statement Il are incorrect 2, Statement Lis correct but Statement Il is incorrect 4, Statement Lis incorrect but Statement Il is correctQuestion No. 41 Which of the following statements is/are True in case of Debentures? A. The debenture holder is entitled to a fixed rate of Interest B. Debenture Holder is entitled to a fixed rate of dividend C. Debenture Holder is entitled to voting rights D. Interest on Debentures is a charge against profits E Interest on Debentures is an appropriation of profits Choose the most appropriate answer from the options given below: 1.4 Only 2. Aand D Only 3. D Only 4. and E OnlyQuestion No. 42 Which of the following is/are not the objectives of the Financial Statements of a company? A It provides information about the economic resources and obligations of a business. B, To provide information about the aptitude of the human resources. . To provide information about the cash flow D. To judge the efficiency/effectiveness of the management E, To provide information about the activities of the business affecting the society. Choose the most appropriate answer from the options given below: 1.8 &COnly 2.8 Only 3.D Only 4.D & EOnlyQuestion No. 43 Match List I with List Il list list [A. Proposed Dividend. Intangible Asset 'B. Goodwill I Long Term Borrowings| Ic. Loose Tools li. Contingent Liabilities ID. Term Loans* lv. Current Assets Choose the correct answer from the options given below: 1.A-II B-IV,C-1. 0-1 2.A-Il,B-1,.C-1V, D-IL 3.A-IIl, B-1.C-1V, D-Ill 4,A-|, 5-1, Cll D-1V Question No. 44 Given below are two statements: Statement |: The process of critical evaluation of Financial information contained in the financial statements in order to understand and make decisions regarding the operations of the firm is called ‘Financial Analysis’ Statement Il: The term ‘Financial Analysis! means only the ‘Analysis’ of financial statements using various tools like Accaunting Ratio and ‘Cash Flow’ etc. In the light of the above statements, choose the most appropriate answer from the aptians given below: 1. Both Statement | and Statement Il are correct. 2. Bath Statement | and Statement Il are incarrect 3, Statement | is correct but Statement Il is incorrect 4, Statement | is incorrect but Statement Il is correctQuestion No. 45 Given below are two statements: Statement I: In Vertical Analysis’ figures of two or more years are analyzed and it can be done by preparing ‘Comparative Statements’ Statement Il: In ‘Horizontal Analysis’ figures of a single year are analyzed and it can be done by preparing ‘Common-Size’ Statements In the light of the above statements, choose the most appropriate answer from the options given below: 1. Both Statement | and Statement II are correct 2. Both Statement | and Statement II are incorrect, 3, Statement | is correct but Statement II is incorrect 4, Statement | is incorrect but Statement Il is correct Question No. 46 Which of the following is not a type of Accounting ratio? 1. Statement of Profit and Loss Ratio 2. Statement of Cash Flow Ratio 3. Balance Sheet Ratio 4. Composite RatioQuestion No. 47 Match List | with List Il list» List lA. Current Ratio I. Solvency Ratio Ig. Debt Equity Ratio Il, Statement of Profit and lLoss Ratio IC. Trade receivable [Turnover Ratio Ill. Balance sheet Ratio ID. Gross Profit Ratio —_|iv. Composite Ratio Choose the correct answer from the options given below: 1.A-II, B-1,C-1V,D-11 2.A-1,B-IV,C-IV, D-Ill 3.A-I1, B-1V, C-Il, D-1 4,.A-1,B~Ill, C- I, D-1V Question No. 48 Calculate Opening Inventory from the following information: Inventory turnover ratio = 5 times Revenue from Operations = Rs. 100000 Gross Profit = 25% of Cost of revenue from operations Opening inventory is Rs. 5000 less than Closing inventory 1.3 19, 500 2.3 17, 500 3.3 13, 500 4.312, 500Question No. 49 Given below are two statements: one is labeled as Assertion A and the other is labeled as Reason R. Assertion A: Decreasing the value of closing inventory decreases profit Reason R: Decrease in the value of closing inventory increases the cost of revenue from the operation In the light of the above statements, choose the most appropriate answer from the options given below: 1. Both A and R are correct and R is the correct explanation of A 2. Both A and R are correct but R is NOT the correct, explanation of A 3. A is correct but R is not correct 4. Ais not correct but R is correctQuestion No. 50 Match List I with List II List | List 11 lA. Rent received from lproperty held as an investment B. Sale of resources by a dealer of Machines IC. Sale of Short Term linvestment lium on the issue of I. Operating Activity Il Investment Activity ll. Financing Activity IV. Cash and Cash lequipment Choose the correct answer from the options given below: 1.A-1,B-1l, C-Il, D-IV 2.A-1,B-1,C-1V, Dol 3.A-I1, B= |, C-Il, D-IV 4,A-11,B-1,C-1V, D-Ill