When a business is purchased, any amount paid in excess of the total of assets, minus the liabilities taken, is called:
| A. | Share Premium |
| B. | Goodwill |
| C. | Capital Employed |
| D. | Working Capital |
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Option: B Explanation : Click on Discuss to view users comments. |
Indicate the correct code as regards the sources of funds for a Funds Flow Statement from the following: (a) Increase in working capital (b) Decrease in working capital (c) Writing off the intangible/fictitious assets (d) Issuing equity shares for acquisition of a build ing for office (e) Charging depreciation on fixed assets
| A. | (a), (c), (d) |
| B. | (b), (c), (e) |
| C. | (a), (d), (e) |
| D. | (b), (c), (d) |
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Option: B Explanation : Click on Discuss to view users comments. |
| A. | (a) and (b) |
| B. | (a) and (c) |
| C. | (a) and (d) |
| D. | (b) and (c) |
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Option: C Explanation : Click on Discuss to view users comments. |
| A. | (ii) (iv) (iii) (i) |
| B. | (iii) (ii) (i) (iv) |
| C. | (iii) (i) (iv) (ii) |
| D. | (iv) (iii) (ii) (i) |
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Option: C Explanation : Click on Discuss to view users comments. |
For the following two statements of Assertion (A) and Reasoning (R), indicate the correct code :
Assertion (A) : Cash Flow Statement as per the financial statements as well is incapable in revealing the overall financial position of a firm.
Reasoning (R) : Cash is an important constituent of the working capital based on the recorded facts only.
| A. | (A) and (R) both are correct and (R) is an explanation of (A). |
| B. | (A) is correct but (R) is not correct. |
| C. | (A) is not correct but (R) is correct |
| D. | (A) and (R) both are incorrect |
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Option: A Explanation : Click on Discuss to view users comments. |
