The 'HSN Code' under GST is used for: MCQ with Answer and Explanation
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Question #1
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S1: Under the Companies Act 2013, a company can buy back its shares up to 25% of its total paid-up equity capital in a financial year. S2: The debt-equity ratio should not exceed 2:1 after a buyback of shares. Which statement(s) is/are correct?
Correct Answer: Option B
Explanation:
Section 68 of the Companies Act 2013 limits buyback to 25% of total paid-up equity capital in a year and mandates that the post-buyback debt-to-equity ratio must not exceed 2:1. Both are correct.
Section 68 of the Companies Act 2013 limits buyback to 25% of total paid-up equity capital in a year and mandates that the post-buyback debt-to-equity ratio must not exceed 2:1. Both are correct.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #2
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The audit conducted continuously throughout the year is known as:
Correct Answer: Option B
Explanation:
A continuous audit involves the auditor visiting the client regularly throughout the financial year, ideal for large organizations with voluminous transactions.
A continuous audit involves the auditor visiting the client regularly throughout the financial year, ideal for large organizations with voluminous transactions.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #3
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A firm's working capital is ₹50,000, current ratio 2.5:1. Its quick ratio is 1.5:1. Inventory value is:
Correct Answer: Option D
Explanation:
WC = CA - CL = 60,000. CA/CL = 3 => CA = 3CL. So 3CL - CL = 60,000 => 2CL = 60,000 => CL = 30,000, CA = 90,000. QA/CL = 1 => QA = 30,000. Inventory = CA - QA = 90,000 - 30,000 = ₹60,000.
WC = CA - CL = 60,000. CA/CL = 3 => CA = 3CL. So 3CL - CL = 60,000 => 2CL = 60,000 => CL = 30,000, CA = 90,000. QA/CL = 1 => QA = 30,000. Inventory = CA - QA = 90,000 - 30,000 = ₹60,000.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
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