Accounting: Current Liabilities and Inventory

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Where is the profit on reissue of forfeited shares transferred to?

Call in Arrears

Securities premium reserve (correct)

Capital reserve

General reserve

What is the amount transferred to capital reserve?

₹ 25,000 (correct)

₹ 5,000

₹ 30,000

₹ 95,000

How is excess application money on pro-rata allotment treated?

Returned to W, X & Y

Adjusted at the time of first and final call

Adjusted at the time of allotment (correct)

Shown as application money pending allotment

What is the maximum discount that could be given by Mona Ltd for re-issue of forfeited shares of X?

₹ 30,000 Signup and view all the answers

How many shares were applied for by Y?

800 shares Signup and view all the answers

What is the amount received per share on first and final call?

₹ 35 Signup and view all the answers

What is the correct classification of 'Interest accrued but not due on borrowings' in the Balance Sheet?

Other current liabilities Signup and view all the answers

What is the profit after tax, given Revenue from Operations is 4,00,000, Cost of Revenue from Operations is 60% of Revenue from Operations, Operating expenses are 30,000, and the income tax rate is 40%?

52,000 Signup and view all the answers

Which of the following items are included in 'Revenue from operations' for a financial company?

ii, iv, v, vi Signup and view all the answers

Which of the following profits of capital nature may be transferred to capital reserve?

viii, ix, x Signup and view all the answers

What is the correct explanation for the classification of 'Interest accrued but not due on borrowings' as a current liability?

It is expected to be paid within 12 months from the date of the Balance Sheet Signup and view all the answers

What is the revenue from operations, given sales are 4,00,000 and interest earned is 1,00,000?

5,00,000 Signup and view all the answers

What is the format that financial statements of a company must be prepared in according to the Indian Companies Act, 2013?

Schedule III Signup and view all the answers

What type of analysis is vertical analysis classified as?

Static analysis Signup and view all the answers

What is a measure of the relationship between two figures called?

Ratio Signup and view all the answers

Which of the following is a measure of liquidity that excludes inventory, which is generally the least liquid asset?

Acid-test ratio Signup and view all the answers

What is the purpose of vertical analysis in financial statements?

To review and analyze financial statements for a single year or on a particular date Signup and view all the answers

What is the term for the analysis of financial statements for a single year or on a particular date?

Vertical analysis Signup and view all the answers

What is the term for the part of un-called capital that can only be called in the liquidation of a company?

Reserve Capital Signup and view all the answers

Which of the following is a type of fixed asset?

Licenses & franchise Signup and view all the answers

What is the purpose of financial statement analysis?

To measure the earning capacity and financial strength of a business Signup and view all the answers

What is the correct matching for 'Capital Reserve'?

Reserves & Surplus Signup and view all the answers

What is the correct classification of 'Building under construction'?

Capital work in progress Signup and view all the answers

What is the correct matching for 'Mortgage loan'?

Long term borrowings Signup and view all the answers

What are the subheadings of Current Liabilities?

Short term borrowings, Trade payables, Short term provisions, and Other current liabilities Signup and view all the answers

What is not included in the subheading 'Inventory'?

Cheques in hand Signup and view all the answers

What is not included in the subheading 'Cash and cash equivalents'?

Cheques in hand Signup and view all the answers

What is the main objective of a Common size statement?

All of the above Signup and view all the answers

Which of the following is classified as a Long-term borrowing?

Debentures Signup and view all the answers

If the fixed assets of a company increased from Rs. 3,00,000 to Rs. 4,00,000, what is the percentage change?

33.33% Signup and view all the answers