{"id":47157,"date":"2024-04-15T22:22:45","date_gmt":"2024-04-15T22:22:45","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=47157"},"modified":"2024-04-15T22:22:45","modified_gmt":"2024-04-15T22:22:45","slug":"read-the-following-statements-and-mark-your-answer-i-return-on-investment-r-o-i-is-calculated-as-part-of-final-accounts-preparation-exercise-ii-inventory-valuation-is-a-must-for-ascertaining-pro","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/read-the-following-statements-and-mark-your-answer-i-return-on-investment-r-o-i-is-calculated-as-part-of-final-accounts-preparation-exercise-ii-inventory-valuation-is-a-must-for-ascertaining-pro\/","title":{"rendered":"Read the following statements and mark your answer: i. Return on Investment (R.O.I.) is calculated as part of final accounts preparation exercise ii. Inventory valuation is a must for ascertaining profit by preparation of Trading Account iii. Operational audit is a statutory requirement for a company auditor iv. Garner Vs. Murray case relates to settlement of accounts on insolvency of a partner of the firm"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;i and iv are correct&#8221; option2=&#8221;ii and iv are correct&#8221; option3=&#8221;ii and iii are correct&#8221; option4=&#8221;i and iii are correct&#8221; correct=&#8221;option4&#8243;]<!--more--><\/p>\n<p>The correct answer is: <strong>D. i and iii are correct<\/strong><\/p>\n<ul>\n<li><strong>Statement i.<\/strong> Return on Investment (R.O.I.) is calculated as part of final accounts preparation exercise.<\/li>\n<\/ul>\n<p>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&#8217;s profit after taxes, and average total assets is the average of the company&#8217;s total assets at the beginning and end of the year.<\/p>\n<ul>\n<li><strong>Statement ii.<\/strong> Inventory valuation is a must for ascertaining profit by preparation of Trading Account.<\/li>\n<\/ul>\n<p>This statement is also correct. Inventory valuation is the process of determining the value of a company&#8217;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&#8217;s income statement. Cost of goods sold is calculated by multiplying the cost of inventory by the number of units sold.<\/p>\n<ul>\n<li><strong>Statement iii.<\/strong> Operational audit is a statutory requirement for a company auditor.<\/li>\n<\/ul>\n<p>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.<\/p>\n<ul>\n<li><strong>Statement iv.<\/strong> Garner Vs. Murray case relates to settlement of accounts on insolvency of a partner of the firm.<\/li>\n<\/ul>\n<p>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&#8217; personal assets can be used. The case was decided in 1874, and it has been cited in numerous subsequent cases.<\/p>\n<p>In conclusion, the correct answer is: <strong>D. i and iii are correct<\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;i and iv are correct&#8221; option2=&#8221;ii and iv are correct&#8221; option3=&#8221;ii and iii are correct&#8221; option4=&#8221;i and iii are correct&#8221; correct=&#8221;option4&#8243;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"class_list":["post-47157","post","type-post","status-publish","format-standard","hentry","category-accounting","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Read the following statements and mark your answer: i. Return on Investment (R.O.I.) is calculated as part of final accounts preparation exercise ii. Inventory valuation is a must for ascertaining profit by preparation of Trading Account iii. Operational audit is a statutory requirement for a company auditor iv. Garner Vs. Murray case relates to settlement of accounts on insolvency of a partner of the firm<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/read-the-following-statements-and-mark-your-answer-i-return-on-investment-r-o-i-is-calculated-as-part-of-final-accounts-preparation-exercise-ii-inventory-valuation-is-a-must-for-ascertaining-pro\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Read the following statements and mark your answer: i. Return on Investment (R.O.I.) is calculated as part of final accounts preparation exercise ii. Inventory valuation is a must for ascertaining profit by preparation of Trading Account iii. Operational audit is a statutory requirement for a company auditor iv. Garner Vs. Murray case relates to settlement of accounts on insolvency of a partner of the firm\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=&#8221;i and iv are correct&#8221; option2=&#8221;ii and iv are correct&#8221; option3=&#8221;ii and iii are correct&#8221; option4=&#8221;i and iii are correct&#8221; correct=&#8221;option4&#8243;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/read-the-following-statements-and-mark-your-answer-i-return-on-investment-r-o-i-is-calculated-as-part-of-final-accounts-preparation-exercise-ii-inventory-valuation-is-a-must-for-ascertaining-pro\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2024-04-15T22:22:45+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Read the following statements and mark your answer: i. Return on Investment (R.O.I.) is calculated as part of final accounts preparation exercise ii. Inventory valuation is a must for ascertaining profit by preparation of Trading Account iii. Operational audit is a statutory requirement for a company auditor iv. Garner Vs. Murray case relates to settlement of accounts on insolvency of a partner of the firm","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/read-the-following-statements-and-mark-your-answer-i-return-on-investment-r-o-i-is-calculated-as-part-of-final-accounts-preparation-exercise-ii-inventory-valuation-is-a-must-for-ascertaining-pro\/","og_locale":"en_US","og_type":"article","og_title":"Read the following statements and mark your answer: i. Return on Investment (R.O.I.) is calculated as part of final accounts preparation exercise ii. Inventory valuation is a must for ascertaining profit by preparation of Trading Account iii. Operational audit is a statutory requirement for a company auditor iv. Garner Vs. Murray case relates to settlement of accounts on insolvency of a partner of the firm","og_description":"[amp_mcq option1=&#8221;i and iv are correct&#8221; option2=&#8221;ii and iv are correct&#8221; option3=&#8221;ii and iii are correct&#8221; option4=&#8221;i and iii are correct&#8221; correct=&#8221;option4&#8243;]","og_url":"https:\/\/exam.pscnotes.com\/mcq\/read-the-following-statements-and-mark-your-answer-i-return-on-investment-r-o-i-is-calculated-as-part-of-final-accounts-preparation-exercise-ii-inventory-valuation-is-a-must-for-ascertaining-pro\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2024-04-15T22:22:45+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/read-the-following-statements-and-mark-your-answer-i-return-on-investment-r-o-i-is-calculated-as-part-of-final-accounts-preparation-exercise-ii-inventory-valuation-is-a-must-for-ascertaining-pro\/","url":"https:\/\/exam.pscnotes.com\/mcq\/read-the-following-statements-and-mark-your-answer-i-return-on-investment-r-o-i-is-calculated-as-part-of-final-accounts-preparation-exercise-ii-inventory-valuation-is-a-must-for-ascertaining-pro\/","name":"Read the following statements and mark your answer: i. Return on Investment (R.O.I.) is calculated as part of final accounts preparation exercise ii. Inventory valuation is a must for ascertaining profit by preparation of Trading Account iii. Operational audit is a statutory requirement for a company auditor iv. Garner Vs. Murray case relates to settlement of accounts on insolvency of a partner of the firm","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2024-04-15T22:22:45+00:00","dateModified":"2024-04-15T22:22:45+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"breadcrumb":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/read-the-following-statements-and-mark-your-answer-i-return-on-investment-r-o-i-is-calculated-as-part-of-final-accounts-preparation-exercise-ii-inventory-valuation-is-a-must-for-ascertaining-pro\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/exam.pscnotes.com\/mcq\/read-the-following-statements-and-mark-your-answer-i-return-on-investment-r-o-i-is-calculated-as-part-of-final-accounts-preparation-exercise-ii-inventory-valuation-is-a-must-for-ascertaining-pro\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/exam.pscnotes.com\/mcq\/read-the-following-statements-and-mark-your-answer-i-return-on-investment-r-o-i-is-calculated-as-part-of-final-accounts-preparation-exercise-ii-inventory-valuation-is-a-must-for-ascertaining-pro\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/exam.pscnotes.com\/mcq\/"},{"@type":"ListItem","position":2,"name":"mcq","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/mcq\/"},{"@type":"ListItem","position":3,"name":"accounting","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/mcq\/accounting\/"},{"@type":"ListItem","position":4,"name":"Read the following statements and mark your answer: i. Return on Investment (R.O.I.) is calculated as part of final accounts preparation exercise ii. Inventory valuation is a must for ascertaining profit by preparation of Trading Account iii. Operational audit is a statutory requirement for a company auditor iv. Garner Vs. Murray case relates to settlement of accounts on insolvency of a partner of the firm"}]},{"@type":"WebSite","@id":"https:\/\/exam.pscnotes.com\/mcq\/#website","url":"https:\/\/exam.pscnotes.com\/mcq\/","name":"MCQ and Quiz for Exams","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/exam.pscnotes.com\/mcq\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209","name":"rawan239","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","caption":"rawan239"},"sameAs":["https:\/\/exam.pscnotes.com"],"url":"https:\/\/exam.pscnotes.com\/mcq\/author\/rawan239\/"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/47157","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/comments?post=47157"}],"version-history":[{"count":0,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/47157\/revisions"}],"wp:attachment":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/media?parent=47157"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/categories?post=47157"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/tags?post=47157"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}