Question7::Which one is a WRONG statement in respect of Realisation Account
‘Ac Realisation Account is in the nature of Real Account
B:-Realised value of assets are credited to Realisation Account and liabilities paid are debited in it
C=Realisation Account is prepared on dissolution of a firm
D:-Profit on Realisation is transferred to Partner's capital Account
Correct Answer:- Option-é
Question8:-Which one is correct in respect of inal Accounts of companies?
2. Profit and Loss Account
b. Balance Sheet
. Cash flow statwement
4. Notes to the Accounts
‘AcStatements a and b only are correct
B:-Statements a, b and c only are correct
C-Statements a, b and d only are correct
D-Statements a, b, cand d are correct
Correct Answer:- Option-D
Question9::Which of the following is NOT related to the Financing Decision?
‘Capitalisation
B:-Capital Budgeting
C-Capital Structure
D-Cost of Capital
Correct Answer:- Option ®
Question10::Which of the following is major point of consideration for the Optimal Capital Structure?
‘AcLow Cost of Capital (Overall cost)
Bs-High Value of the Firm
C=Both of the above
D-None of the above
Correct Answer:- Option-C
Question11:-Hard Core working Capital means
‘AcPermanent Working Capital
B:-Temporary Working Capital
C-Special Working Capital
D:Variable Working Capital
Correct Answer:- Option-é
Question12:-Raw Material Conversion Period is 10 Days
Work - in Progress Conversion period is 15 days
Finished goods conversion period is 20 days
Receivables conversion period is 30 days
Payable Deferral Period is 25 Days
Net Operating Cycle period is
ಹಿ-200 days
B:-90 days
C75 days
0:50 days
Correct Answer:- Option-D
Question13::Which of the following is NOT a technique of accelerating cash collections?
‘AcLock Box System
B:-ABC Analysis
CConcentration Banking
D-Decentralised Collection Centres
Correct Answer:- Option ®
Question14::Which of the following statement is TRUE about the Optimum Credit Policy for a firm?
2. Liberal Credit Policy means increased profitability but decreased liquidity
Stringent Credit Policy means Reduced Profitability but enhanced liquidity

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. Firm should find an optimum credit policy through a trade-off between liquidity and profitability
4. Firm should pursue liberal credit policy even by suffering the liquidity