Financial Accounting

Which of the following costs should NOT be included in the initial cost of acquiring PPE?

• Purchase Price

• Installation costs

• Routine maintenance expense

• Legal fee related to acquisition

What does a low inventory turnover ratio typically suggest?

• A low inventory turnover ratio typically suggests high demand for products.
• A low inventory turnover ratio typically suggests efficient inventory management.
• A low inventory turnover ratio typically suggest slow moving goods or overstocked inventory

• A low inventory turnover ratio typically suggests accurate sales forecasting.

Company B's cost of goods sold (COGS) for the year is ₹400,000, and its average inventory value is ₹60,000. Calculate the inventory turnover ratio for Company B.

• 6.67
• 0.15

Which method of depreciation is NOT recognized under Ind AS?

• Units of Production Method
• Sinking Fund Method
• Straight Line Method
• wdv Method

Which inventory costing method is specifically prohibited under Ind AS?

• First In, First Out (FIFO)
• Weighted Average Cost Method
• Specific Identification Method
• Last In, First Out (LIFO)

Company B bought a building for ₹10,00,000 with an estimated useful life of 30 years and an estimated residual value of ₹1,00,000. Calculate the annual depreciation expense using the straight-line method for Company B.

• ₹100,000
• ₹50,000
• ₹30,000
• ₹10,000

ompany B is a retail clothing store. At the beginning of the year, they had a stock of clothes worth ₹200,000. Throughout the year, they made additional purchases of clothing worth ₹300,000 and had an ending inventory of ₹50,000. Calculate the COGS for Company B.

• ₹450,000
• ₹550,000
• ₹250,000
• ₹150,000

Company B is a retail clothing store. At the beginning of the year, they had a stock of clothes worth ₹200,000. Throughout the year, they made additional purchases of clothing worth ₹300,000 and had an ending inventory of ₹50,000. Calculate the cost of goods available for sale.

• ₹550,000
• ₹450,000
• ₹350,000
• ₹500,000

Company B began with ₹50,000 in cash and purchased ₹20,000 in inventory. The company earned ₹30,000 in revenue during the month and paid ₹15,000 in expenses. Calculate the owner's equity at the end of the month.

• ₹55,000
• ₹65,000
• ₹50,000
• ₹35,000

If a company's equity is ₹150,000, and its total assets are ₹300,000, what is the amount of its liabilities?

• ₹250,000
• ₹200,000
• ₹100,000
• ₹150,000