The working capital requirement of a business is ₹80,000; current ratio is 2:1. Current assets will be: MCQ with Answer and Explanation

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The working capital requirement of a business is ₹80,000; current ratio is 2:1. Current assets will be:

A. ₹1,60,000

B. ₹80,000

C. ₹40,000

D. ₹1,20,000

Answer: Option A

Solution (By JKSSB Mock Tests)

Working capital = CA - CL = 80,000; CA/CL = 2 => CA = 2CL. Then 2CL - CL = 80,000 => CL = 80,000; CA = 1,60,000.

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

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The 'Letter of Undertaking' (LUT) is used for exporting goods/services without payment of IGST by:

A. Only new exporters

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C. Exporters with a good compliance history

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Correct Answer: Option C

Explanation:
Exporters can furnish LUT instead of paying IGST and claiming refund.

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The 'Tax on Virtual Digital Assets' (VDAs) allows deduction of:

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Correct Answer: Option B

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A: A partner has the right to inspect the books of accounts of the firm. R: This right is implied in the Partnership Act, 1932. Choose the correct option.

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Correct Answer: Option C

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