Working Capital Management specifically deals with: MCQ with Answer and Explanation

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Working Capital Management specifically deals with:

A. Fixed assets and long-term debt

B. Dividend payouts

C. Current assets and current liabilities

D. Issuing new equity shares

Answer: Option C

Solution (By JKSSB Mock Tests)

It involves managing the relationship between a firm's short-term assets and its short-term liabilities to ensure adequate liquidity.

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

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Question #1

Social accounting primarily focuses on:

A. Maximizing shareholder wealth

B. Reporting the social and environmental impact of a business

C. Calculating tax liabilities

D. Auditing internal controls

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Correct Answer: Option B

Explanation:
Social accounting measures and reports the social, environmental, and economic effects of business activities on the community.

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Question #2

The 'Directorate General of Foreign Trade' (DGFT) is under:

A. RBI

B. Ministry of Commerce and Industry

C. Ministry of Finance

D. Ministry of External Affairs

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Correct Answer: Option B

Explanation:
DGFT is the nodal agency for foreign trade policy under Ministry of Commerce.

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Question #3

Which of the following is an example of an 'Error of Commission'?

A. Recording a machinery purchase in the Purchases Account

B. Failing to record a transaction entirely

C. Entering Rs 4,500 instead of Rs 5,400 in an account

D. Two errors cancelling each other out

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Correct Answer: Option C

Explanation:
An error of commission involves incorrect casting, posting, or carry-forward, such as writing the wrong numerical amount.

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