(i) Balance Sheet     (ii) Manufacturing Account         (iii) Profit and Loss Account (iv) Trading Account         (v) Profit and Loss Appropriation Account The correct sequence in which the statements are prepared is:  

(i) Liquidity ratios measure long term solvency of a concern. (ii) Inventory is a part of liquid assets.             (iii) Rule of thumb for acid test ratio is 2:1 (iv) The amount of gross assets is equal to net capital employed.  

List  I List II (a) Capital Budgeting (i) Time adjusted rate of return (b) Profitability Index (ii) Irreversible (c) Internal rate of return (ii) Benefit/cost (d) Capital investment decisions (iv) Planning capital Expenditure Codes:

(i) “The rate of return on investment increases with the shortage of working capital.” (ii) “Net working capital is the excess of current assets over current liabilities.” (iii) “Greater the size of the business unit, larger will be the requirement of working capital (iv) “Working capital is also known as circulating capital.” Which one of […]