Which one of the following combination of rules stands true while preparing schedule of changes in working capital?<br>1. An increase in current assets increases working capital.<br>2. An increase in current assets decreases working capital.<br>3. An increase in current liabilities decreases working capital.<br>4. An increase in current liabilities increases working capital.

Read the following statements:
1. The rate of return on investment increases with the shortage of working capital.
2. Net working capital is the excess of current assets over current liabilities.
3. Greater the size of the business unit, larger will be the requirement of working capital.
4. Working capital is also known as circulating capital.
Which one of the following consists of the correct statements?

A

1, 2 and 3

B

2, 3 and 4

C

3, 4 and 1

D

1, 2 and 4

Assertion (A): The management of working capital refers to the management of current assets and current liabilities.
Reason (R): The major thrust is on the managementof current assets; because current liabilities arise in the context of current assets.

A

Both (A) and (R) are incorrect

B

(A) is correct, but (R) is incorrect

C

Both (A) and (R) are correct

D

(A) is incorrect, but (R) is correct

Consider the following data relating to a farm
Total assets = Rs. 3000
Working assets = Rs. 800
Current assets = Rs. 1500
Current liabilities = Rs. 200
Total liabilities = Rs. 900
The net capital ratio in this case would be

A

4.0

B

4.33

C

3.33

D

2.33

If "x" stands for addition, "<" stands for subtraction, "+" stands for division, ">" stands for multiplication, "–" stands for equals to, "÷" stands for greaterthan and "=" stands for less than, which of the following holds true?

A

18 + 9 = 128 > 2

B

16 + 9 \u00d7 8 < 2 \u2013 14

C

8 \u00d7 12 + 3 \u2013 14 \u00d7 2

D

182 + 6 > 4 \u00f7 1218

Consider the following statements.
1. In case of standard assets, provision for NPA must be 25% for all types of standard assets.
2. In case of sub-standard assets, provision for NPA must be 10% for all types of standard assets.
3. In case of doubtful assets, 100% provision is required for unsecured and secured advances.
4. In case of loss assets, 10% of unsecured and 100% of secured advance must be kept as provision for NPAs.
Which of the statement(s) given above is/are correct?

A

Only 3

B

1, 2 and 4

C

Only 4

D

Both 1 and 3

Two involute gears are designed to mesh for a given centre distance and a given angular velocity ratio (other than 1). During assembly, the centre distance has increased slightly. Then which of the following changes occur? (i) Velocity ratio changes (ii) Pressure angle changes (iii) Pitch circle diameter changes (iv) Working depth changes (v) Base circle radius changes Select the correct answer using the code given below.

A

1, 2 and 3

B

2, 3 and 4

C

2 and 5

D

3 and 5

If '+' stands for '÷', '' stands for '=', 'x' stands for '+', '÷'stands for greater than, '=' stands for less than, '>' stands for multiplication and '<' stands forsubtraction, then which of the following alternatives is correct?

A

5\u00f72x1=3+4>1

B

5>2x1\u00ad3>4<1

C

5x2<1\u00ad3<4x1

D

5<2x1\u00f73>4x1

Arrange the following steps of 'adjustment of old partners' capital on the basis of incoming partner's capital in a correct order.
1. Ascertain the present capital of the old partners.
2. Calculation of total capital of firm on the basis of new partner's capital.
3. Finding the surplus/deficit capital.
4. Determining the new capital of each partner.
Select the correct answer:

A

2, 4, 1, 3

B

3, 2, 1, 4

C

4, 3, 2, 1

D

1, 4, 2, 3

An increase in current liabilities in the schedule of changes in working capital shows

A

increase in working capital

B

no change in working capital

C

decrease in working capital

D

proportionate change in working capital

Mundel's classes of change includes
1. Changes in body motions and positions
2. Changes in equipment and working arrangements
3. Changes in production sequence
4. Changes in finished product
5. Changes in raw material

A

1, 2 and 3

B

1, 2, 3 and 4

C

1, 2, 3, 4 and 5

D

None of these