December 2015 - Paper 2

16:  
If raw materials are in store for 2 months, processing time 21/2 months, finished goods remain in store for 15 days, debtors are allowed 60 days' credit and credit received from suppliers of raw material is one month, the opera ting cycle period is :
A.

7 months

B.

6 months

C.

61/2 months

D.

5 months

 
 

Option: B

Explanation :

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17:  

Which of the following is not general disclosure requirement under Accounting standard-14 ?

A.

Name and nature of Business

B.

Description and number of shares issued

C.

Accounting method followed

D.

Particulars of scheme sanctioned

 
 

Option: B

Explanation :

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18:  

Under the Modified Accelerated Cost Recovery System (MACRS) an asset in the "5 year property class" would typically be depreciated over how many years?

A.

4 years

B.

5 years

C.

6 years

D.

7 years

 
 

Option: C

Explanation :

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19:  

According to the concept of financial Signalling, management behaviour results in new debt issues being regarded as "_________ news" by investors.

A.

Non-Event

B.

Bad

C.

Risk Neutral

D.

Good

 
 

Option: D

Explanation :

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20:   The Exchange of interest and/or principal payment between two parties are called:
A.

Swap

B.

In the money

C.

Forward

D.

Put option

 
 

Option: A

Explanation :

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