Stock is considered as a liquid asset as anytime it can be converted into cash immediately.

Related MCQs

• Determine stock turnover ratio if, Opening stock is Rs 31,000 , Closing stock is Rs 29,000, Sales is Rs 3,20,000 & Gross profit ratio is 25% on sales.
• In case of other enterprises cash flow arising from interest paid should be classified as cash flow from ________ while dividends and interest received should be stated as cash flow from ____.
• Opening stock + purchases + direct expenses – closing stock =
• Which statement shows the flow of cash and cash equivalents during the financial period?
• If 6% Pref. share capital ₹2,00,000 were redeemed at a premium of 5%, while preparing Cash Flow Statement its effect on cash flow will be :
• If the amount of goodwill is ₹40,000 at the beginning of a year and ₹48,000 at the end of that year then while preparing cash flow statement its effect on cash flow will be :
• As per Accounting Standard-3, Cash Flow is classified into
• Incorrect cash flow planning can lead to ________
• Determine Working capital turnover ratio if, Current asset is Rs 1,50,000, current liability is Rs 1,00,000 & cost of goods sold is Rs 3,00,000.
• When a fixed asset is bought as hire purchase, interest element is classified under ______ and loan element is classified under________.