Redemption of Preference share capital 2. Payment of Dividend 3. Increase in working capital Codes:
Financial statements are only interim reports Financial Statements are prepared on the basis of realizable values The preparation of financial statements is not an ultimate aim. Certain assumptions are necessary to prepare financial statements. Which of the following combinations consists of all true statements?
(i) A ratio is an arithmetical relationship of one number to another number. (ii) Liquid ratio is also known as acid test ratio (iii) Rule of thumb for current ratio is 2:1. (iv) Debit equity ratio is the relationship between outsider’s fund and shareholder’s fund.
(i) Pay Back period method measures the true profitability of a project. (ii) Capital Rationing and Capital Budgeting mean the same thing (iii) Internal Rate of Return and Time Adjusted Rate of Return are the same thing. (iv) Rate of Return Method takes into account the time value of money.