QUIZ ON CREDIT RISK MANAGEMENT

How many clauses exist in the Companies (Auditor's Report) Order, 2016 ("the order")?

• 12
• 15
• 16
• 21

If the Total of Current Assets is Rs. 168 lakh and Total Current Liabilities is Rs. 142.68 lakh, then what will the amount of long term funds, which are supporting the financing of current assets?

• Rs. 26.32 lakh
• Rs. 25.32 lakh
• Rs. 24.32 lakh
• Can't be calculated from the given information

Net Working Capital (NWC) can be calculated as?

• Total Current Assets - Total Current Liabilities
• Long Term Sources - Long Term uses
• (Net Worth + Term Liabilities) - (Total Assets -current assets)
• Any of the above

Preliminary or Pre-operative expenses, outstanding balance in the Balance Sheet should be classified as?

• Current Assets
• Fixed Assets
• Non-Current Assets
• Intangible Assets

Preparation of Financial Statement is the responsibility of the management. What are the responsibilities of the Independent / Statutory Auditors?

• To express an opinion on the financial statement
• Comments on the compliance of the various Acts, Accounting Standards etc.
• Assurance for True and Fair representation of financial statements
• All the above

Reasons for reduction in Net Working Capital could be?

• Losses in business
• Conversion of current assets into non-current assets
• Use of short term funds for long term purposes
• All of the above

Tandon Committee had prescribed three methods of lending. What will the current ratio under 2nd Method of lending?

• 1.28
• 1.33
• More than 1.33
• It depends on case to case basis

Which Statement provides a snapshot of the financial position of the unit at a particular date and time?

• Profit and Loss Account
• Balance Sheet
• Auditor's Report
• Non of the above

In the beginning of the financial year, ABS and Associates has acquired a machine at a cost of Rs. 12 lakh. By applying the rate @ 20% under WDV method for charging depreciation, what will the amount of depreciation to be debited to P&L account for the second year?

• Rs. 2.40 lakh
• Rs. 1.92 lakh
• Rs. 1.82 lakh
• Rs. 1.86 lakh

slow Moving / Non Moving / Obsolete stocks should be classified as?

• Current Assets
• Fixed Assets
• Non-current Assets
• Intangible Assets