Question : ----------------- is a fund earmarked for investment in fixed assets or already invested in fixed assets. An example of a Fixed Assets Fund is a Building Fund & Amount invested in fixed assets during the year is transferred to a Capital Fund.
Option 1: Capital fund
Option 2: Fixed assets fund
Option 3: Endowment Fund
Option 4: None of the above
Correct Answer: Fixed assets fund
Solution : Fixed Assets Fund is a fund earmarked for investment in fixed assets or already invested in fixed assets. Example of Fixed Assets Fund: Building Fund & Amount invested in fixed assets during the year is transferred to Capital Fund. Hence, the correct option is 2.
Question : Which of the following statement is incorrect?
Option 1: Networking capital refers to investment in all the current assets taken together.
Option 2: Fixed capital is the money invested in fixed assets
Option 3: Working capital refers to that part of total capital which is required for holding current assets.
Question : It is the money invested in fixed assets which is to be used over a long period of time. Which capital is highlighted in the given statement?
Option 1: Working capital
Option 2: Fixed capital
Option 3: Capital structure
Question : Which of the following statements is incorrect?
Option 1: Working Capital = Current Assets - Current Liabilities
Option 2: Current Liabilities = Total Assets - Non-Current Liabilities - Shareholder's fund
Option 3: Working Capital = Equity Share Capital + Reserves & Surplus - Long Term Loan - Non-Current Assets
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