If debt-equity ratio is 2:1 and total assets ₹12,00,000, long-term debt is: (Assume no current liabilities) MCQ with Answer and Explanation

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If debt-equity ratio is 2:1 and total assets ₹12,00,000, long-term debt is: (Assume no current liabilities)

A. ₹8,00,000

B. ₹6,00,000

C. ₹4,00,000

D. ₹2,00,000

Answer: Option A

Solution (By JKSSB Mock Tests)

Total assets = Equity + Debt (since no CL). D/E = 2, so D=2E. E + 2E = 12L => 3E=12 => E=4L, D=8L.

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Question #1

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The 'Country-by-Country Report' (CbCR) filing in India is required for MNE groups with consolidated revenue exceeding:

A. ₹1,000 crore

B. ₹5,500 crore (€750 million)

C. No threshold

D. ₹500 crore

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Correct Answer: Option B

Explanation:
The threshold is aligned with BEPS Action 13, i.e., €750 million.

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Question #2

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The 'Indian Financial Management System' for central government is managed by:

A. Securities and Exchange Board of India

B. Reserve Bank of India

C. Ministry of Corporate Affairs

D. Controller General of Accounts (CGA)

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Correct Answer: Option D

Explanation:
CGA is the principal advisor on accounting matters for the Union Government.

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Question #3

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Which accounting standard deals with the presentation of financial statements?

A. AS 9

B. AS 1

C. AS 2

D. AS 10

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Correct Answer: Option B

Explanation:
AS 1 'Disclosure of Accounting Policies' deals with the classification and presentation of financial statements and the disclosure of accounting policies.

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