Classical

December 2013 - Paper3

11:  
Which of the following ratios are taken into consideration by a banker before sanctioning the loan?
A.

Proprietory Ratio

B.

Stock-Turnover Ratio

C.

Debt-Equity Ratio

D.

All of the above

 
 

Option: D

Explanation :


12:  
Match the items of the following two lists:

List – I

List – II

(i) Zero-base Budgeting

(a) Internal Reconstruction

(ii) Goodwill or Capital Reserve

(b) Earnings Per Share

(iii) Reduction of Capital

(c) Control of Expenditure

(iv) Basic & Diluted

d) Business Combination

 

 

A.

(i)(c), (ii)(d), (iii)(b), (iv)(a)

B.

(i)(d), (ii)(c), (iii)(a), (iv)(b)

C.

(i)(d), (ii)(a), (iii)(c), (iv)(b)

D.

(i)(c), (ii)(d), (iii)(a), (iv)(b)

 
 

Option: D

Explanation :


13:  
Assertion (A) : Dividend paid out of pre-acquisition profit by the subsidiary company to the holding company is deducted from the cost of investment.
 
Reason (R.) : Dividend paid out of pre-acquisition profit by the subsidiary company should be treated as a return of capital to the holding company.
 
Which one of the following is correc?

 

A.

Both (A) and (R) are correct.

B.

(A) is correct, but (R) is wrong.

C.

(A) is wrong, but (R) is correct.

D.

Both (A) and (R) are wrong.

 
 

Option: D

Explanation :


14:  
Given below are two statements, one labelled as Assertion (A) and the other Iabelled as Reason (R) :
 
Assertion (A) : Increasing the value of closing inventory increases profit.

Reason (R) : Increasing the value of closing inventory reduces cost of goods sold. In the context of the above two statements,

Which of the following  is correct?    
A.

Both (A) and (R) are correct.

B.

Only (A) is correct

C.

Only (R) is correct

D.

Both (A) and (R) are wrong.

 
 

Option: D

Explanation :


15:  
Match the items of List - I with the items of List - II and select the correct code for the answer :
 

List-I

List-II

(a) Multiple plants

 

(i)  MRPT=MC=MRPX=MRPPY

(b) Cost plus-pricing

 

(ii) MRT=MC=MR1=MR2

(c) Multiple  markets

 

(iii) MR=MCT=MCA=MCB

(d) Multiple products

 

(iv) P=(1+m)ATC

 

 

A.

(iv) (ii) (i) (iii)

B.

(i) (iii) (iv) (ii) 

C.

(ii) (i) (iii) (iv)

D.

(iii) (iv) (ii) (i) 

 
 

Option: A

Explanation :




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