1. The ease with which an asset can be converted to cash is referred to as: (a) Spread (b) Liquidity

1. The ease with which an asset can be converted to cash is referred to as: (a) Spread (b) Liquidity (c) Both (a) and (b) (d) None of the above 2. The decrease in the economic utility of a tangible fixed asset (say, due to wearing out or using up) is best known as: (b) Utilisation (a) Devaluation (c) Depreciation (d) None of the above 3. Which of the following costs are generally allowed to be included in the computation of the cost of a plant and machinery? (b) Taxes and Import Duties Paid (a) Cost of installation (c) Transportation Costs (d) All of the above e) None of the above 4. Aniket

View complete question 1. The ease with which an asset can be converted to cash is referred to as: (a) Spread (b) Liquidity (c) Both (a) and (b) (d) None of the above 2. The decrease in the economic utility of a tangible fixed asset (say, due to wearing out or using up) is best known as: (b) Utilisation (a) Devaluation (c) Depreciation (d) None of the above 3. Which of the following costs are generally allowed to be included in the computation of the cost of a plant and machinery? (b) Taxes and Import Duties Paid (a) Cost of installation (c) Transportation Costs (d) All of the above e) None of the above 4. Aniket Pizza Limited has current assets worth Rs 5,275,000, current liabilities worth Rs 1,000,000, zero long-term liabilities, and shareholders equity totaling Rs 5,000,000. The total assets of the company would be: (a) Equal to Rs 6,000,000 (b) Less than Rs 6,000,000 (c) More than Rs. 6,000,000 (d) Insufficient information Copyrighted material Financial Accounting for Malagement 76 5. A company’s total liabilities and shareholders equity amount to Rs 850,000, long-term assets to Rs 500,000, accounts receivable to Rs 50,000 and inventory to Rs 100,000. The only other cur- rent asset account shown on the balance sheet is cash. The value of the cash would be: (a) Rs 100,000 (b) Rs 150,000 (c) Rs 200,000 (d) Rs 250,000

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