CA Exam Prep
Financing Decisions Capital Structure Question 1.Answer the following:What is Optimum Capital Structure? Explain. (Nov 2007, 2 marks)ORAnswer the following:Discuss the concept of ‘Optimál Capital Structure.” (Nov 2008, 2 marks)Answer:Capital structure is optimum when the value of the firm is maximum and Cost of capital (debts & equity) is minimum and so market price per share […]
Cost of Capital Question 1.Explain the significance of Cost of Capital. (Nov 2019, 4 marks)AnswerThe cost of capital is important to arrive at correct amount and helps the management or an investor to take an appropriate decision. The correct cost of capital helps in the following decision-making: 1. Evaluation of Investment options The estimated benefits […]
Financial Analysis and Planning Ratio Analysis Question 1.Answer the following:What is quick ratio? What does it signify? (Nov 2008, 2 marks)Answer:Quick ratio also termed as “acid test ratio” is one of the best measures of liquidity.It is worked out as follows:Quick Ratio = Quick Assets Quick liabilities In the above formula:Quick Assets = Current Assets – InventoriesQuick liabilities […]
Types of Financing Question 1.Write short notes on following:Bridge Finance. (May 2006, Nov 2011, Nov 2016, 3, 2, 2 each marks)Answer:Bridge Finance:Meaningbridge finance ¡s a short-term loan taken by a firm from commercial banks to disperse loans sanctioned by financial institutions. Importance or Need for Bridge FinanceBridge finance as the name suggests bridges the time […]
Scope and Objectives of Financial Management Question 1.Explain the two basic functions of Financial Management. (Nov 2002, Nov 2009, 3 marks)Answer:The two basic functions of F.M. are1. Procurement of funds2. Effective use of these funds 1. Procurement of fundProcurement of funds includes: Identification of sources of finance Determination of finance mix Raising of funds Division […]
Deductions from Gross Total Income Question 1.Answer the following with regard to the provisions of the Income-tax Act, 1961 :Briefly explain provisions of section 80U of the Income-tax Act, 1961, in respect of deduction available on permanent physical disability [Nov. 2008, 4 Marks]Answer: Section Explanation 80U Deduction from Gross Total Income under section 80U is […]
Clubbing of Income Question 1.Mr. Ramesh gifted a sum of ₹ 5 lakhs to his brother’s Minor Son on 16.04.2020. On 18.04.2020, his brother gifted Debentures worth ₹ 6 Lakhs to Mrs. Ramesh. Son of Mr. Ramesh Brother invested the amount in FD with Bank of India @ 9% p.a. Interest and Mrs. Ramesh received […]
Income from Other Sources Question 1.From the following particulars of Pankaj for the previous year ended 31st March, 2021 compute the Income under the head “Income from other Sources” [Nov. 2009, 6 Marks] Particulars Amount (₹) Directors Fee from a Company 10000 Interest on bank Deposits 3000 Income from undisclosed source 12000 Winnings from Lotteries […]
MONEY MARKET QUESTIONS AND ANSWES 1. The money market deals in: A. Long-term fundsB. Medium-term fundsC. Short-term fundsD. All types of fundsAnswer: C. Short-term funds 2. Which of the following is not a money market instrument?A. Treasury billsB. Commercial paperC. SharesD. Certificates of depositAnswer: C. Shares 3. The major participant in the money market is: […]
Determination Of National Income Select the right option which is used for measuring the National Income Income Method Product Method Expenditure Method All of the Above Answer D. All of the Above Which organisation is accountable for calculating the Gross Domestic Product of India? Indian Statistical Institute Reserve Bank of India National Statistical Office Ministry of […]