The correct answer is: D. i and iii are correct
- Statement i. Return on Investment (R.O.I.) is calculated as part of final accounts preparation exercise.
This statement is correct. R.O.I. is a measure of profitability that shows how much profit a company makes for each dollar of investment. It is calculated by dividing net income by average total assets. Net income is the company’s profit after taxes, and average total assets is the average of the company’s total assets at the beginning and end of the year.
- Statement ii. Inventory valuation is a must for ascertaining profit by preparation of Trading Account.
This statement is also correct. Inventory valuation is the process of determining the value of a company’s inventory. The value of inventory is important because it is used to calculate cost of goods sold, which is a major expense on a company’s income statement. Cost of goods sold is calculated by multiplying the cost of inventory by the number of units sold.
- Statement iii. Operational audit is a statutory requirement for a company auditor.
This statement is incorrect. Operational audits are not a statutory requirement for company auditors. However, they are often conducted by companies to assess the effectiveness of their operations. Operational audits can be conducted by internal auditors or external auditors.
- Statement iv. Garner Vs. Murray case relates to settlement of accounts on insolvency of a partner of the firm.
This statement is correct. The Garner Vs. Murray case was a landmark case in English law that established the principle that the assets of a partnership must be used to pay off the debts of the partnership before the partners’ personal assets can be used. The case was decided in 1874, and it has been cited in numerous subsequent cases.
In conclusion, the correct answer is: D. i and iii are correct.