The time value of money concept is a core element in which financial management decision? MCQ with Answer and Explanation

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The time value of money concept is a core element in which financial management decision?

A. Capital Budgeting

B. Working Capital Management

C. Ratio Analysis

D. Inventory Valuation

Answer: Option A

Solution (By JKSSB Mock Tests)

Capital budgeting techniques like Net Present Value (NPV) discount future cash flows, fundamentally relying on the time value of money.

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Question #1

Under GST, IGST revenue is:

A. Deposited into the RBI reserves

B. Kept entirely by the State Government

C. Apportioned between the Central and the Destination State Government

D. Kept entirely by the Central Government

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Correct Answer: Option C

Explanation:
Being a destination-based tax, IGST is collected by the Centre and shared with the destination state where the goods are consumed.

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Question #2

The 'Section 194O' (TDS on e-commerce) rate is:

A. 2%

B. 5%

C. 1%

D. 10%

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Correct Answer: Option C

Explanation:
TDS at 1% on gross amount of sales facilitated by e-commerce operator.

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Question #3

The balance of 'Petty Cash Book' is:

A. A liability

B. Income

C. An asset

D. An expense

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Correct Answer: Option C

Explanation:
Petty cash balance is cash in hand, an asset.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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