Assertion (A): Cash flow statement as per the financial statements as well is incapable in revealing the overall financial position of a firm. Reasoning (R): Cash is an important constituent of the working capital based on the recorded facts only.
List I List II (a) Debtors Turnover Ratio (i) Solvency Ratio (b) Proprietary Ratio (ii) Liquidity Ratio (c) Operating Ratio (iii) Activity Ratio (d) Acid Test Ratio (iv) Profitability Ratio
(a) Analysis and interpretation of financial statements, is a function of accounting (b) Profit and loss account is prepared for ascertaining financial position of a firm. (c) Goodwill is a wasting asset (d) Balance Sheet is prepared for ascertaining financial position of a firm. Select the correct answer using the codes given below:
(a) Increase in working capital (b) Decrease in working capital (c) Writing off the intangible/fictitious assets (d) Issuing equity shares for acquisition of a building for office (e) Charging depreciation on fixed assets
Column I Column II (a) Materiality Concept (i) The same accounting method used by a firm from one period to another (b) Going concern concept (ii) An inappropriate assumption of a firm being bankrupt (c) Historical Cost concept (iii) A normal basis used for accounting assets (d) Consistency Concept (iv) Relates to the importance […]