Free Credit Risk Management Trivia Questions and Answers

Question 1

The Companies (Auditor's Report) Order, 2016 ("the order") contains how many clauses?

Accepted Answer

16

Answer

21

Answer

12

Answer

15

Question 2

What is the total amount of long-term funds that are supporting the financing of current assets if the total amount of current assets is Rs. 168 lakh and the total amount of current liabilities is Rs. 142.68 lakh?

Accepted Answer

Rs. 25.32 lakh

Answer

Rs. 24.32 lakh

Answer

Rs. 26.32 lakh

Answer

Can't be calculated from the given information

Question 3

How is Net Working Capital (NWC) determined?

Accepted Answer

Any of the above

Answer

Total Current Assets - Total Current Liabilities

Answer

(Net Worth + Term Liabilities) - (Total Assets -current assets)

Answer

Long Term Sources - Long Term uses

Question 4

What category should the outstanding balance in the balance sheet's preliminary or pre-operative expenses be assigned?

Accepted Answer

Intangible Assets

Answer

Non-Current Assets

Answer

Current Assets

Answer

Fixed Assets

Question 5

The management is in charge of preparing the financial statements. What duties fall under the purview of the Independent/Statutory Auditors?

Accepted Answer

All the above

Answer

To express an opinion on the financial statement

Answer

Assurance for True and Fair representation of financial statements

Answer

Comments on the compliance of the various Acts, Accounting Standards etc.

Question 6

What could be the causes of a decrease in net working capital?

Accepted Answer

All of the above

Answer

Conversion of current assets into non-current assets

Answer

Use of short term funds for long term purposes

Answer

Losses in business

Question 7

The Tandon Committee recommended three lending techniques. What will the current ratio be for the second financing method?

Accepted Answer

1.33

Answer

It depends on case to case basis

Answer

1.28

Answer

More than 1.33