Advertisements
Advertisements
Question
Define current assets? Give four examples of such assets.
Advertisements
Solution
Current assets are those assets which can be converted into cash within a period of one year.
Examples of such assets are :-
- Stock
- Debtors
- Bills receivable and
- Marketable securities
APPEARS IN
RELATED QUESTIONS
Name the concept of financial management which increases the return to equity shareholders due to the presence of fixed financial charges.
Read the following text and answer the following questions on the basis of the same:
Mr. A. Bose is running a successful business. Mr. Bose is the owner of R. K. Cement Ltd. Mr. Bose decided to expand his business by acquiring a Steel Factory. This required an investment of Rs. 60 crores. To seek advice in this matter, he called his financial advisor Mr. T. Ghosh who advised him about the judicious mix of equity (40%) and Debt (60%). Employ more of cheaper debt may enhance the EPS. Mr. Ghosh also suggested him to take loan from a financial institution as the cost of raising funds from financial institutions is low. Though this will increase the financial risk but will also raise the return to equity shareholders. He also apprised him that issue of debt will not dilute the control of equity shareholders. At the same time, the interest on loan is a tax deductible expense for computation of tax liability. After due deliberations with Mr. Ghosh, Mr. Bose decided to raise funds from a financial institution.
In the above case Mr. Ghosh suggested to raised more fund from debt.
Higher debt-equity ratio results in ______.
A decision to acquire a new and modem plant to upgrade an old one is a
Read the following text and answer the following question on the basis of the same:
Mr. A. Bose is running a successful business. Mr. Bose is the owner of R. K. Cement Ltd. Mr. Bose decided to expand his business by acquiring a Steel Factory. This required an investment of Rs. 60 crores. To seek advice in this matter, he called his financial advisor Mr. T. Ghosh who advised him about the judicious mix of equity (40%) and Debt (60%). Employ more of cheaper debt may enhance the EPS. Mr. Ghosh also suggested him to take loan from a financial institution as the cost of raising funds from financial institutions is low. Though this will increase the financial risk but will also raise the return to equity shareholders. He also apprised him that issue of debt will not dilute the control of equity shareholders. At the same time, the interest on loan is a tax-deductible expense for computation of tax liability. After due deliberations with Mr. Ghosh, Mr. Bose decided to raise funds from a financial institution.
Identify the concept of Financial Management as advised by Mr. Ghosh in the above situation.
Which of the following statement is false regarding financial management?
Financial management is concerned with which combination?
Financial management keeps control on which risk?
How is maximisation of shareholders' wealth achieved?
Efficient financial decisions lead to what?
Shareholders' wealth is reflected in what?
Financial management decisions directly affect items appearing in which accounts?
Which examples are Fixed Assets?
Which examples are Current Assets?
What describes Capital Structure?
Which items are listed as Expenses?
What is the aim of a financial decision concerning Cost of capital?
Which items affected by financial management decisions appear in the Balance Sheet?
