{"id":48335,"date":"2024-04-15T22:39:45","date_gmt":"2024-04-15T22:39:45","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=48335"},"modified":"2024-04-15T22:39:45","modified_gmt":"2024-04-15T22:39:45","slug":"the-following-is-the-position-of-current-assets-and-current-liabilities-31st-december-94-31st-december-95-debtors-rs-30000-rs-24000-creditors-rs-20000-rs-30000-stock-rs-16000-rs-20000-p","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/the-following-is-the-position-of-current-assets-and-current-liabilities-31st-december-94-31st-december-95-debtors-rs-30000-rs-24000-creditors-rs-20000-rs-30000-stock-rs-16000-rs-20000-p\/","title":{"rendered":"The following is the position of current assets and current liabilities: 31st December, 94 31st December, 95 Debtors Rs. 30,000 Rs. 24,000 Creditors Rs. 20,000 Rs. 30,000 Stock Rs. 16,000 Rs. 20,000 Prepaid expenses Rs. 8,000 Rs. 12,000 Profit made during the year Rs. 5,00,000 after considering the following items: Depreciation on plant Rs. 20,000 Preliminary expenses written off Rs. 10,000 Transfer to general reserve Rs. 14,000 Profit on sale of land Rs. 6,000 The cash from operations is:"},"content":{"rendered":"<p>\r\n    <!-- Check if it's an AMP page -->\r\n            <!-- Non-AMP version -->\r\n        <div class=\"mcq-container\" data-quiz-id=\"quizState_6a9741488d9cc\">\r\n                                            <div class=\"option\" data-option-key=\"option1\" data-is-correct=\"true\">\r\n                    Rs. 5,44,000                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option2\" data-is-correct=\"false\">\r\n                    Rs. 5,38,000                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option3\" data-is-correct=\"false\">\r\n                    Rs. 5,46,000                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option4\" data-is-correct=\"false\">\r\n                    Rs. 5,54,000                <\/div>\r\n                            \r\n            <!-- Feedback messages for non-AMP -->\r\n            <div class=\"feedback\" data-feedback=\"wrong\">Answer is Right!<\/div>\r\n            <div class=\"feedback\" data-feedback=\"right\">Answer is Wrong!<\/div>\r\n        <\/div>\r\n\r\n        <script>\r\n        document.addEventListener('DOMContentLoaded', function () {\r\n            var containers = document.querySelectorAll('.mcq-container');\r\n\r\n            containers.forEach(function(container) {\r\n                var options = container.querySelectorAll('.option');\r\n                var feedbackSelect = container.querySelector('[data-feedback=\"select\"]');\r\n                var feedbackWrong = container.querySelector('[data-feedback=\"wrong\"]');\r\n                var feedbackRight = container.querySelector('[data-feedback=\"right\"]');\r\n\r\n                options.forEach(function(option) {\r\n                    option.addEventListener('click', function() {\r\n                        var selectedOption = option.getAttribute('data-option-key');\r\n                        var isCorrect = option.getAttribute('data-is-correct') === 'true';\r\n\r\n                        \/\/ Remove previous selections\r\n                        options.forEach(function(opt) {\r\n                            opt.classList.remove('correct', 'incorrect');\r\n                        });\r\n\r\n                        \/\/ Add the correct\/incorrect class\r\n                        if (isCorrect) {\r\n                            option.classList.add('correct');\r\n                            feedbackRight.hidden = false;\r\n                            feedbackWrong.hidden = true;\r\n                        } else {\r\n                            option.classList.add('incorrect');\r\n                            feedbackRight.hidden = true;\r\n                            feedbackWrong.hidden = false;\r\n                        }\r\n\r\n                        \/\/ Hide select feedback\r\n                        feedbackSelect.hidden = true;\r\n                    });\r\n                });\r\n            });\r\n        });\r\n        <\/script>\r\n    \r\n    <!--more--><\/p>\n<p>The correct answer is: <strong>A. Rs. 5,44,000<\/strong><\/p>\n<p>The cash from operations is calculated as follows:<\/p>\n<ul>\n<li>Net profit + Depreciation + Increase in current assets &#8211; Decrease in current liabilities<\/li>\n<\/ul>\n<p>In this case, the net profit is Rs. 5,00,000. The depreciation is Rs. 20,000. The current assets increased by Rs. 8,000 (30,000 &#8211; 24,000) and the current liabilities increased by Rs. 10,000 (30,000 &#8211; 20,000). Therefore, the cash from operations is:<\/p>\n<ul>\n<li>5,00,000 + 20,000 &#8211; 8,000 &#8211; 10,000 = 5,44,000<\/li>\n<\/ul>\n<p>The other options are incorrect because they do not take into account all of the relevant information. For example, option B does not include the <div class=\"youtube-subscribe-container\">\r\n        <a href=\"https:\/\/www.youtube.com\/channel\/UCNHT8lW-JmLC68rjBfZhdkg?sub_confirmation=1\" target=\"_blank\" class=\"youtube-subscribe-button\">\r\n            <span <div class=\"telegram-channel-container\">\r\n        <a href=\"https:\/\/t.me\/pscnotes2025\" target=\"_blank\" class=\"telegram-channel-button\">\r\n            <span class=\"telegram-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 496 512\">\r\n                    <path fill=\"white\" d=\"M248,8C111,8,0,119,0,256s111,248,248,248s248-111,248-248S385,8,248,8z M362,177L320,367c-3,14-10,18-20,14l-56-41l-27,26 c-3,3-5,5-10,5l4-63L323,196c5-5-1-7-8-3l-98,62l-42-13c-9-3-10-9,2-14l162-63C351,160,365,164,362,177z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Join Our Telegram Channel\r\n        <\/a>\r\n    <\/div> class=\"youtube-icon\">\r\n                <svg 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16,000 Rs. 20,000 Prepaid expenses Rs. 8,000 Rs. 12,000 Profit made during the year Rs. 5,00,000 after considering the following items: Depreciation on plant Rs. 20,000 Preliminary expenses written off Rs. 10,000 Transfer to general reserve Rs. 14,000 Profit on sale of land Rs. 6,000 The cash from operations is:","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\/the-following-is-the-position-of-current-assets-and-current-liabilities-31st-december-94-31st-december-95-debtors-rs-30000-rs-24000-creditors-rs-20000-rs-30000-stock-rs-16000-rs-20000-p\/","og_locale":"en_US","og_type":"article","og_title":"The following is the position of current assets and current liabilities: 31st December, 94 31st December, 95 Debtors Rs. 30,000 Rs. 24,000 Creditors Rs. 20,000 Rs. 30,000 Stock Rs. 16,000 Rs. 20,000 Prepaid expenses Rs. 8,000 Rs. 12,000 Profit made during the year Rs. 5,00,000 after considering the following items: Depreciation on plant Rs. 20,000 Preliminary expenses written off Rs. 10,000 Transfer to general reserve Rs. 14,000 Profit on sale of land Rs. 6,000 The cash from operations is:","og_description":"Subscribe on YouTube","og_url":"https:\/\/exam.pscnotes.com\/mcq\/the-following-is-the-position-of-current-assets-and-current-liabilities-31st-december-94-31st-december-95-debtors-rs-30000-rs-24000-creditors-rs-20000-rs-30000-stock-rs-16000-rs-20000-p\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2024-04-15T22:39:45+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"1 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land Rs. 6,000 The cash from operations 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