Accounting Ratios — Accountancy STD 12 Commerce — Question

Long term capital loss can be set off from which of the following?

1. Short term capital gain only
2. Long term capital gain only
3. Income from business and profession
4. Capital gain head of income

________ describes the significant relationship which exists between various items of a balance sheet and a statement of profit and loss of a firm.

1. Ratio Analysis
2. Proportion Analysis
3. Trend Analysis
4. Cash flow analysis

Which Option is Correct in Purview of Debentures?

1. A debenture holder can get his money back only on the liquidation of the company.
2. A debenture holder is an owner of the company
3. A debenture issued at a discount can be redeemed at a premium
4. A debenture holder received interest only in the event of profits

Tax paid is ___________.

1. Source of funds
2. Application of funds
3. Flow of funds
4. Flow of cash

When debentures are issued at a discount, the discount should be written off

1. After debentures have been redeemed.
2. Within 5 years of the issue of debentures.
3. During the life of the debentures.
4. None of the above.

Revenues affect net income .....

1. In the period during which they are earned.
2. In the period during when they are collected.
3. In the period during when they are accounted for.
4. Any of the above three which occur first.

Cash Inflows from a project include ________.

1. Tax shield of depreciation
2. After-tax operating profits
3. Raising of funds
4. Both A and B

While preparing the transferee company's financial statement under amalgamation in the nature of merger, the assets and liabilities taken over from the transferor company should be incorporated at _____.

1. Cost
2. Book value
3. Revised value
4. None of these

A cash flow statement is useful for __________.

1. Short-term planning
2. Long-term planning
3. Medium term planning
4. None of the above

Which of these is one of the condition for issue of sweat equity shares by a company?

1. Authorized by a special resolution passed by the company in general meeting.
2. Provision in the Article of Association of the company.
3. Court orders authorizing such issue.
4. Cannot be issued at discount.