WHITE LADDER STUDY
XI, XII, [Link](H/P), CA, CMA, CS ( +91-9811-820-136) Presented by Liyakat Ali
Q. 1. Which of the following is not a sub-head under the Current Assets?
(a) Cash and Cash Equivalents
(b) Trademarks
(c) Short-term Loans and Advances
(d) Inventories
Q. 2. As per Schedule III, Part I of the Companies Act, 2013 ‘Unpaid dividend’ will be
presented under which of the following head/sub-head in the Balance Sheet of a
company?
(a) Reserves and Surplus
(b) Current Liabilities
(c) Contingent Liabilities
(d) Shareholders’ Funds
Q. 3. Which of the following is a tool of ‘Analysis of Financial Statements’?
(a) Cash Flow Statement.
(b) Statement of Profit & Loss.
(c) Balance Sheet.
(d) Both (a) and (b).
Q. 4. Under which major heads the following items will be placed in the Balance Sheet of a
company as per Schedule III, Part I of the Companies Act, 2013?
(i) Securities Premium, (ii) Term loans from bank,
(iii) Unpaid Dividends, and (iv) Goods-in-transit,
(v) Computer software, (vi) Vehicles.
Q. 5. Which of the following is a tool of Analysis of Financial Statements?
(i) Cash Flow Statement
(ii) Statement of Profit & Loss
(iii) Notes to Accounts
(iv) Balance Sheet
Choose the correct option:
(a) (i). (b) (i) and (ii). (c) (ii). (d) (i), (ii) and (iv).
Q. 6. The ‘Inventory Turnover Ratio’ from the following information will be:
Revenue from Operations ₹ 12,00,000
Average Inventory ₹ 2,00,000
Gross Loss Ratio 20%
(a) 6 Times.
(b) 5 Times.
(c) 7.2 Times.
(d) 3 Times.
Q. 7. Which of the following statement is/are correct?
(i) Quick Ratio is considered better than Current Ratio as a measure of liquidity position of
business.
(ii) Debt-Equity Ratio measures short-term solvency of the business.
(iii) Interest Coverage Ratio reveals the number of times interest on long-term debts is
covered by the profit available for interest.
(a) All are correct. (b) (i) and (iii) are correct.
(c) (ii) and (iii) are correct. (d) (i) and (ii) are correct.
Q. 8. Which of the following transactions are shown under financing activities while
preparing cash flow statement?
(i) Issue of Equity Shares.
(ii) Redemption of Debentures.
Choose the correct option:
(a) (i). (b) (i) and (ii).
(c) (i) and (iii). (d) (i), (ii) and (iv).
Q. 9. Interest of ₹ 3,000 received in cash on loans and advances will result in
(a) cash inflow from operating activities.
(b) cash inflow from investing activities.
(c) cash inflow from financing activities.
(d) No change in cash or cash equivalents.
Q. 10. (a) From the following, calculate ‘Trade Receivables Turnover Ratio’:
Total Revenue from Operations for the year – ₹ 8,40,000
Cash Revenue from Operations – 40% of Credit Revenue from Operations
Closing Trade Receivables – ₹ 2,00,000
Excess of Closing Trade Receivables over Opening Trade Receivables – ₹ 80,000.
(b) From the following information, calculate ‘Interest Coverage Ratio’:
Profit after Interest and Tax – ₹ 4,97,000
Rate of Income Tax – 30%
12% Debentures – ₹ 6,00,000.
Q. 11. From the following information, prepare Comparative Statement of Profit & Loss:
Q.12.
Additional Information:
(i) ₹ 1,00,000, 12% Debentures were issued on 1st April, 2017.
(ii) During the year, a piece of machinery costing ₹ 80,000 on which accumulated
depreciation was ₹ 40,000 was sold at a gain of ₹ 10,000.
Prepare a Cash Flow Statement.
