Download App

Accounting Ratios — Accountancy STD 12 Commerce — Question

CBSE BoardEnglish MediumSTD 12 CommerceAccountancyAccounting Ratios1 Mark
Question
Networking capital is defined as:
  1. Total assets less current assets.
  2. The excess of current assets over current liabilities.
  3. Current liabilities less current assets.
  4. Marketable securities and cash.
✓

Answer

  1. The excess of current assets over current liabilities.

Need a full question paper?

Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.

Start Generating Free

Explore more

More "M.C.Q (1 Marks)" from Accounting Ratios→Accounting Ratios — all question types→Accountancy STD 12 Commerce question papers→CBSE Board STD 12 Commerce question papers→CBSE Board question paper generator→

Similar questions

A company is expected to earn a profit of Rs.1 crore from a contract next year, the Accountant of the company is reluctant to account for this expected profit in the current year. He is guided by the Accounting concept of......
  1. Materiality
  2. Consistency
  3. Conservatism
  4. Matching
→
Combined Leverage is obtained from OL and FL by their _____________.
  1. Addition
  2. Subtraction
  3. Multiplication
  4. Any of these
→
When an existing company takes over the business of one or more existing companies, it is called ________.
  1. Amalgamation
  2. Absorption
  3. Internal reconstruction
  4. None of these
→
Limitation of Financial Analysis.
  1. Misleading without the knowledge of the changes in accounting procedure
  2. Nonmonetary Aspects re Ignored
  3. All of the above
  4. Ignorance of changes in Price level
→
Interpretation of Financial Statements includes:
  1. Criticisms and Analysis
  2. Comparison and Trend Study
  3. Drawing Conclusion
  4. All the above
→
A Company formed and registered for future projects or to hold an asset or intellectual property rights can apply for registration as ___________.
  1. Dummy company
  2. Sham company
  3. Dormant company
  4. Inactive company
→
New profit earned + non working capital expense =
  1. Sinking fund
  2. Use of funds
  3. Funds provided by operation
  4. Cash provided by operation
→
Mr. Bhandari purchased a car for Rs. 50,000, making a down payment of Rs. 10,000 and signing a Rs. 40,000 bill payable due in 60 days. As a result of this transaction ________.
  1. Total assets increased by Rs. 50,000
  2. Total liabilities increased by Rs. 40,000
  3. Total assets increased by Rs. 40,000
  4. Total assets increased by Rs. 40,000 with corresponding increase in liabilities by Rs. 40,000
→
F Ltd. purchased machinery for a book value of ₹ 4,00,000. The consideration was paid by issue of 10% Debentures of ₹ 100 each at a discount of 20%. The Debenture Account will be credited by:
  1. ₹ 4,00,000
  2. ₹ 5,00,000
  3. ₹ 3,20,000
  4. ₹ 4,80,000
→
Goodwill of a company is shown on the assets side of the Balance Sheet under the head.
  1. Current Assets
  2. Non-current Assets
  3. Miscellaneous Expenditure
  4. None of these
→