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FM - Revision - MCQ Formulas
FM - Revision - MCQ Formulas
CH 3
Q6 out of the given current asset which Asset is non Quick current Asset
A-Investment
b-machinary
c-Goodwill
D-Inventory
AnswerD
(List of current assets Bill receivable Debtors Cash and bank balance Prepaid expense Inventory/ stock
Short term investment)
(Current liabilities list: Creditors, Bills payable, Provision for tax,Proposed dividend, Bank overdraft, O/S
exp., Income received in advance, Advance from customers;)
Inventory Cycle In mth ! = Ordering Phase in mth + Production Phase in Mth + Finished Goods and
Delivery Phase in mth
Q8 The cost of goods sold is Rs. 400 Cr. Average inventory is Rs.80Cr.
What is the inventory holding period? Assuming that a year has 360days?
a.100days
b 60days
c 72day
d none of the above
(hodinginventoryperiod=Avginventory*360days/costofgoodssold)
Q9 the following are the list of asset of the company P&M 8lakh
Furniture 6Lakh motorcar 10lakh stock 9lakh receivable 12lakhs
Cash bank 11lakhs, prepaid exp 4lakhs, goodwill 8lakh, find the value of
Current Asset
A. 20lak
B. 24lak
C. 32lak
D. 36lak
answerD (stock+receivable+prepaidexp+cashbank)
Q9 a. the following are the list of asset of the company P&M 8lakh
Furniture 6Lakh motorcar 10lakh stock 9lakh receivable 12lakhs
Cashbank 11lakhs,prepaidexp 4lakhs, goodwill 8lakh, find the value of
Fixed Asset
A. 20 lak
B. 24 lak
C. 32 lak
D. 36 lak
Ans. C
(Fixed Assets are those assets that are long term investments which enables the business to carry on its
operations. Fixed assets represent the use of cash to purchase physical assets whose life exceeds one
year. All tangible assets are fixed assets. E.g. Land, Building, Machinery and Equipment, Furniture and
Fixtures, Leasehold Land, Vehicles etc. and intangible assets like goodwill copyright patent trademark
etc.)
CH=4
Answer=5L B
20 x 30 % = 6
Q17 B Net profit before tax is 40crores. Tax percent is 30 percent. Calculate
The Net Profit after tax amount
A.9crores
B.14crores
C.6crores
D.28crores
Soln= 40 - (40*30%)= 40-12= 28 Cr
Q18) Net profit before tax is 80L.Tax is 30%. Number of Equity shares is 8L.
Find earning per share
A.10rs
B.8rs
C.7rs
D.12rs
EPS=NPAT/No of Equity shares
Answer is C
Soln EPS=56/8=7(80L-24L56L/8L)
Q21 Following are the list of Assets and liabilities, Equity share capital 5L,
Reserve and surplus 2L, Plant and Machinery 9L, Furn and Fix.5L, Stock 4
L,Creditors 6L, Bills payable 2L, Bankloan 5L, Outstanding expense 1L,
Debtors 4L. Adv Tax 4l stock 5l Bills receivable 2l
From the following calculate the total current liability
a) 5L
b) 3L
c) 9L
d) 17L
answer C
soln- current liability = creditors + bills payable + outstanding expense
=6lacs+2lacs+1lacs
=9lacs
List of current assets Bill receivable Debtors Cash and bank balance Prepaid expense Inventory/ stock
Short term investment.
Q22. Following are the list of Assets and liabilities, Equity share capital 5L,
Reserve and surplus 2L, Plant and Machinery 9L, Furn and Fix.5L, Stock 5L
,Creditors 6L, Bills payable 2L, Bankloan 5L, Outstanding expense 1L,
Debtors 4L. Adv Tax 4l , Bills receivable 2l
From the following calculate the total Current Asset
a) 15L
b) 3L
c) 9L
d) 17L
Ans A
( Stk 5L + Debtor4L + Adv Tax 4L + Bill Receivable 2L)