Related Questions

One of the main tasks of asset accounting is to represent the asset portfolio in the detailed form of an asset history sheet.
Consider the following statements.
Assertion (A): A well-developed money market is the basis for an effective monetary policy. It is in the money market that the Central Bank comes into contact with the financial sectors of the economy as a whole and it is through the liquidity in the market that influences the cost and availability of credit.
Reasoning (R): A well-organized money market is an essential condition for the successful operation of the Central Banking policies, and for holding the conditions of liquidity within the bounds of what the monetary authorities consider desirable.
The question below consists of a set of labelled sentences. Out of the four options given, select the most logical order of the sentences to form acoherent paragraph.
P: The recent reduction in interest rates in the US and the injection of liquidity have resulted in investors seeking new avenues such as commodity markets, in view
of the turbulence in financial markets and the low returns in treasuries.
Q: The relatively easy liquidity and low interest rates, by themselves, make holding of inventories attractive and thus induce volatility in commodity markets.
R: The financialisation of commodity trade and current extraordinary conditions in global financial markets could have influenced the spurt in prices.
S: The weakening of the US dollar is also advanced as a reason for the recent volatility in commodity markets, including food items.
Credit creation capacity of a bank depends on the cash reserve ratio and statutory liquidity ratio.
If the initial deposit (O) is Rs. 1,000 and the Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) is 5% and 20%, then the credit creation capacity will be as follows
Which of the following are probable benefits of securitization, in which assets are transformed into security?
1. For the owner of the asset, it improves the liquidity position as the future receivables are replaced by cash.
2. It improves the channelization of money in the economy.
An asset under construction requires a separate asset class with their own account determination since depreciation has to be shown separately on the balances sheet.
In a recent year, Windsor's Boat's reported an asset turnover ratio of 2.46 times and a profit margin of 19.8% . In the same year, Sarah's Sail Boats reported an asset turnover ratio of 1.27 times and a profit margin of 9.9% . Which of the following statements is false ?
Consider the following statements.
1. The entity concept of accounting is not applicable to sole trading concerns and partnership concerns.
2. Assets are to be shown in the balance sheet at their replacement cost on liquidation.
3. Money measurement concept takes into account changes in the value of monetary unit.
4. When a creditor is paid, this results in decrease of one asset and a corresponding increase in other asset.
Which of the statements given above are correct?
In the following passage, some of the words have been left out. Read the passage carefully and select the correct answer for the given blank out of the fouralternatives.
______________________ the Troubled Asset Relief Program (TARP), the government had purchased assets of struggling banks with a view _______________ ensuringthat they did not collapse taking ____________________ them the rest of the financial system. These assets __________________ later at a profit by the government! TheU.S. government had acted smartly, while in the Indian case the banks now find themselves ______________________ with loans made by them to an individual withnegative net worth.
______________________ the Troubled Asset Relief Program (TARP)
Which statement is true?
1. Liquidation value is the value of the assets if they had to be sold under pressure.
2. Earnings valuations entail multiplying the earnings of the venture by a price earnings ratio or dividing the earnings by some capitalisation factor.
3. The book-value of an asset is the historical cost of the asset less accumulated depreciation.
4. Control issues are negotiable and not solely dependent on the proportion of stock the investors have purchased. All minority stockholders have rights.
5. Social trends refer to the modes and manners in which people life their lives. Lifestyles reflect people's tastes and preferences in an economic sense.