Classical

Financial and Management Accounting - Financial and Management Accounting Practice Questions

46:  

Which one of the following statements is correct?

A.
A decrease in current liabilities causes an increase in the working capital
B.
An increase in current liabilities causes a increase in the working capital
C.
A decrease in the current assets causes an increase in the working capital
D.
An increase in the current assets causes a decrease in the working capital
 
 

Option: A

Explanation :


47:  
Which of the following statements is not correct?
A.
Dissolution of the firm refers to the winding up of business in partnership.
B.
Dissolution of partnership involves complete break-down of relations among all the partners.
C.
Dissolution of the firm is dissolution of partnership between all the partners of a firm.
D.
Dissolution of the firm results in discontinuation of the business in partnership.
 
 

Option: B

Explanation :


48:  

As per SEBI's guidelines underwriting is

A.

optional

B.

Not mandatory

C.

Not necessary

D.

Mandatory

 
 

Option: D

Explanation :


49:  
According to the Companies Act, 1956 a private company means a company which by its Articles
1. Restricts the right to transfer its shares, if any
2. Limits the number of its members to 50.
3. Prohibits invitation to the public to subscribe for any shares in or debentures of, the company.
4. Private companies do not involve participation of public in general.
Select the correct answer using the codes given below:
A.

1,2 and 4

B.

1,2 and 3

C.

2,3 and 4

D.

1,2,3 and 4

 
 

Option: D

Explanation :


50:  

Advantages of Budgetary control include

A.

Maximization of Profit

B.

Reduces Cost

C.

Corrective Action

D.

All of the above

 
 

Option: D

Explanation :




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