Q6. Under Basel II, the capital as a % of RWAs to be maintained by banks in India is-
1) 8%
2) 4.5%
3) 9%
4) 12%
Q7. Read the following regarding depreciation:
(1) A fixed percentage of the original cost of
the asset is charged as depreciation each year.
(2) A fixed percentage is charged as depreciation
on the diminishing value of the asset each year.
(3) Amount written as depreciation is kept aside
and invested in securities each year.
Identity the depreciation method from the above
statements:
i) (1) straight line method ;
ii) (2) sinking fund method ;
iii) (3) written down value method
1) i , ii , iii
2) ii , i , iii
3) i , iii , ii
4) ii , iii , i
Q8. A debit in the real account implies -----
1) Value of the asset, whose account is being
debited has increased
2) The business has disposed off the asset
3) Value of the asset, whose account is being
debited has decreased
4) None of the above
Q9. As per to Accounting Standards 2, Inventories
means tangible property held ---
1) For sale in the ordinary course of business
2) In the process of production for such sale
3) For production in the production of goods and
services for sale and it includes maintenance supplies and consumables other
than machinery and spares
4) All the above
Q10. When a business uses borrowed funds, having
relatively lower costs, it is said that the business has used ---------
1) Operating leverage
2) Combined leverage
3) Financial leverage
4) None of the above
