Question : Creditors are
Option 1: Tangible Fixed Assets
Option 2: Other Current Liabilities
Option 3: Intangible Assets under Development
Option 4: Trade payable
Correct Answer: Other Current Liabilities
Solution : Answer = Other Current Liabilities
Creditors are typically categorized as trade payables, which represent amounts owed to suppliers for goods or services purchased on credit. They fall under the category of Other Current Liabilities in the balance sheet, reflecting short-term obligations that the company must settle within a year. Hence, the correct option is 2.
Question : Goodwill is
Option 3: Intangible Assets
Option 4: Short-term Borrowings
Question : Goodwill and patents fall under the category of ________.
Option 1: Current assets
Option 2: Liquid assets
Option 3: Intangible assets
Option 4: Tangible assets
Question : Which of the following is the correct formula for "Current Ratio"?
Option 1: Liquid Assets/Current Liabilities
Option 2: Current Assets/Current Liabilities
Option 3: Fixed Assets/Current Assets
Option 4: Liquid Assets/Current Assets
Question : To know the return on investment, by capital employed we mean:
Option 1: Current Asset - Current Liabilities
Option 2: Gross Block
Option 3: Fixed Assets + Current Assets - Current Liabilities
Option 4: Net Fixed Assets
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