Model Paper 3 — Accountancy STD 12 Commerce — Question

The ratio of Current Assets (₹ 10,00,000) to Current Liabilities (₹ 4,00,000) is 2.5 : 1. The accountant of the firm is interested in maintaining a Current Ratio of 1.8 : 1, by acquiring some Current Assets on Credit. Current asset acquired will be:

Choose the right answer:
Comparative statement are also known as:

1. Dynamic analysis.
2. Horizontal analysis.
3. Vertical analysis.
4. External analysis.

As per Schedule III, Part I of the Companies Act, 2013 ’Calls-in-arrears’ will be presented under which of the following head/sub-head, in the Balance Sheet of a company?

1. Current Liabilities
2. Contingent Liabilities
3. Reserves and Surplus
4. Shareholders’ Funds

The Debenture Redemption Reserve account appears on the liability side of the balance sheet under the head ___________.

1. Capital
2. Reserves and surplus
3. Non-current liabilty
4. Current liability

In calculation of net cash flow, deferred tax payments are classified as _______________.

1. Non-cash revenues
2. Non-cash charges
3. Current liabilities
4. Income expense

Current Assets means........

1. Assets which can be converted into the cash within one year.
2. Liabilities which are payable immediately.
3. Liabilities which payable after one accounting year.
4. Liabilities which are readable within 3 months.

Shares of a private company can be sold through ____________.

1. Private circulation
2. Stock exchange
3. Private circulation and exchange
4. None of these

Which formulae would result in TRUE if C4 is less than 10 and D4 is less than 100?

The term capital structure denotes ____________________.

1. Total of Liability side of Balance Sheet
2. Equity Funds, Preference Capital and Long-term Debt
3. Total Shareholders Equity
4. Types of Capital issued by a Company

Discount on issue of debentures is shown under the following head in the Balance Sheet:

1. Profit & Loss Account
2. Miscellaneous Expenditure.
3. Debentures Account.