{"id":49284,"date":"2024-04-15T22:53:30","date_gmt":"2024-04-15T22:53:30","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=49284"},"modified":"2024-04-15T22:53:30","modified_gmt":"2024-04-15T22:53:30","slug":"with-the-help-of-following-information-find-out-the-value-of-fixed-assets-share-capital-rs-720000-working-capital-rs-252000-current-ratio-2-5-proprietary-ratio-0-7","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/with-the-help-of-following-information-find-out-the-value-of-fixed-assets-share-capital-rs-720000-working-capital-rs-252000-current-ratio-2-5-proprietary-ratio-0-7\/","title":{"rendered":"With the help of following information, find out the value of fixed assets- Share capital = Rs. 7,20,000 Working capital = Rs. 2,52,000 Current Ratio = 2.5 Proprietary Ratio = 0.7"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;Rs. 5,04,000&#8243; option2=&#8221;Rs. 5,40,000&#8243; option3=&#8221;Rs. 3,60,000&#8243; option4=&#8221;Rs. 5,88,000&#8243; correct=&#8221;option1&#8243;]<!--more--><\/p>\n<p>The correct answer is A. Rs. 5,04,000.<\/p>\n<p>To calculate the value of fixed assets, we can use the following formula:<\/p>\n<p>Fixed Assets = Current Assets * Proprietary Ratio \/ Current Ratio<\/p>\n<p>Proprietary Ratio is the ratio of shareholders&#8217; equity to total assets. It is a measure of the extent to which a company is financed by its owners. A higher proprietary ratio indicates that a company is more financially stable, as it has a lower level of debt.<\/p>\n<p>Current Ratio is the ratio of current assets to current liabilities. It is a measure of a company&#8217;s ability to meet its short-term obligations. A higher current ratio indicates that a company is more financially stable, as it has a greater ability to meet its short-term obligations.<\/p>\n<p>In this case, we are given the following information:<\/p>\n<p>Share capital = Rs. 7,20,000<br \/>\nWorking capital = Rs. 2,52,000<br \/>\nCurrent Ratio = 2.5<br \/>\nProprietary Ratio = 0.7<\/p>\n<p>We can use this information to calculate the value of fixed assets as follows:<\/p>\n<p>Fixed Assets = Current Assets * Proprietary Ratio \/ Current Ratio<\/p>\n<p>= Rs. 2,52,000 * 0.7 \/ 2.5<\/p>\n<p>= Rs. 5,04,000<\/p>\n<p>Therefore, the value of fixed assets is Rs. 5,04,000.<\/p>\n<p>Option B is incorrect because it is the value of working capital. Option C is incorrect because it is the value of shareholders&#8217; equity. Option D is incorrect because it is the value of current assets.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;Rs. 5,04,000&#8243; option2=&#8221;Rs. 5,40,000&#8243; option3=&#8221;Rs. 3,60,000&#8243; option4=&#8221;Rs. 5,88,000&#8243; correct=&#8221;option1&#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-49284","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>With the help of following information, find out the value of fixed assets- Share capital = Rs. 7,20,000 Working capital = Rs. 2,52,000 Current Ratio = 2.5 Proprietary Ratio = 0.7<\/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\/with-the-help-of-following-information-find-out-the-value-of-fixed-assets-share-capital-rs-720000-working-capital-rs-252000-current-ratio-2-5-proprietary-ratio-0-7\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"With the help of following information, find out the value of fixed assets- Share capital = Rs. 7,20,000 Working capital = Rs. 2,52,000 Current Ratio = 2.5 Proprietary Ratio = 0.7\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=&#8221;Rs. 5,04,000&#8243; 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