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

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.

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

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.

Question 3

How is Net Working Capital (NWC) determined?

Accepted Answer

Any of the above

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

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.

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

Credit Risk Management Practice Test

Credit Risk Management Practice Test

FREE Credit Risk Management Trivia Questions and Answers