D:-All of the above
Correct Answer:- Option-D

Question28:-Statement | : Maintaining adequate working capital is not just
important in the short term. Sufficient liquidity must be maintained in order to
ensure the survival of the business in the long term as well

Statement Il: The amount of hard core working capital is determined by taking into
consideration the sales or production policies

Select the correct answer from the options given below

A:-Statement | is correct while statement II is incorrect
B:-Statement Il is correct while statement | is incorrect
C:-Both statement | and Statement II are correct
D:-Both statement | and Statement II are incorrect
Correct Answer:- Option-C

Question29:-Which of the following is not an advisable financial strategy that may
be followed by a finance manager of an organization when interest rates are low

A:-Borrow money at fixed rate of interest to increase the company's gearing
and to maximize return on equity

B:-Borrow long term funds rather than short term funds
C:-Replace the high cost debt with low cost debt

D:-New projects should be suspended temporarily till the interest rates of the
economy increases

Correct Answer:- Option-D

Question30:-Indicate the financial analysis method in which total present value of
future cash inflow is equal to initial investment

A:-IRR

B:-ARR

C:-NPV

D:-Benefit cost ratio
Correct Answer:- Option-A

Question31:-A person who is considered as an assessee for some other person is
called

A:-Specified Assessee
B:-Normal Assessee
C:-Deemed Assessee
D:-Assessee in default
Correct Answer:- Option-C

Question32:-Which of the following allowances are deductible to the extent of the
amount actually spent

A:-Conveyance Allowance, Transport Allowance, Helper Allowance