FREE Credit Risk Management Trivia Questions and Answers

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

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Explanation:
Intangible assets are non-physical assets that lack a physical substance but have value and are identifiable. These assets are not held for sale in the normal course of business but are used to generate future benefits for the company.

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

Correct! Wrong!

Explanation:
The Companies (Auditor's Report) Order, 2016, commonly known as the CARO 2016, consists of 16 clauses. These clauses specify the requirements and matters to be included in the auditor's report for companies in India. The order aims to enhance the quality and transparency of financial reporting and auditing practices for companies.

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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?

Correct! Wrong!

Explanation:
To determine the amount of long-term funds supporting the financing of current assets, you can use the formula:

Long-term funds = Total current assets - Total current liabilities

In this case, the total of current assets is Rs. 168 lakh, and the total of current liabilities is Rs. 142.68 lakh. By subtracting the total current liabilities from the total current assets, we can find the number of long-term funds supporting the financing of current assets:

Long-term funds = Rs. 168 lakh - Rs. 142.68 lakh = Rs. 25.32 lakh

Therefore, the amount of long-term funds supporting the financing of current assets is Rs. 25.32 lakh.