{"id":49664,"date":"2024-04-15T22:59:04","date_gmt":"2024-04-15T22:59:04","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=49664"},"modified":"2024-04-15T22:59:04","modified_gmt":"2024-04-15T22:59:04","slug":"given-current-assets-rs-400000-current-liabilities-rs-160000-reserves-surplus-rs-160000-proprietary-ratio-fixed-assets-proprietary-funds-0-75-fixed-assets-will-be","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/given-current-assets-rs-400000-current-liabilities-rs-160000-reserves-surplus-rs-160000-proprietary-ratio-fixed-assets-proprietary-funds-0-75-fixed-assets-will-be\/","title":{"rendered":"Given, Current Assets Rs. 4,00,000 Current Liabilities Rs. 1,60,000 Reserves &#038; Surplus Rs. 1,60,000 Proprietary Ratio (Fixed Assets\/Proprietary Funds) 0.75 Fixed Assets will be"},"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_6a97dead574d4\">\r\n                                            <div class=\"option\" data-option-key=\"option1\" data-is-correct=\"true\">\r\n                    Rs. 7,20,000                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option2\" data-is-correct=\"false\">\r\n                    Rs. 7,60,000                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option3\" data-is-correct=\"false\">\r\n                    Rs. 8,00,000                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option4\" data-is-correct=\"false\">\r\n                    Rs. 9,60,000                <\/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 A. Rs. 7,20,000.<\/p>\n<p>Proprietary ratio is a measure of a company&#8217;s financial leverage. It is calculated by dividing the company&#8217;s fixed assets by its proprietary funds. Proprietary funds are the funds that belong to the owners of the company, and they are made up of the company&#8217;s equity and retained earnings.<\/p>\n<p>A high proprietary ratio indicates that the company has a lot of debt, while a low proprietary ratio indicates that the company has a lot of equity. A proprietary ratio of 0.75 indicates <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> that the company has a debt-to-equity ratio of <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 class=\"youtube-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 576 512\">\r\n                    <path d=\"M549.7 124.1c-6.3-23.7-24.8-42.3-48.3-48.6C458.8 64 288 64 288 64S117.2 64 74.6 75.5c-23.5 6.3-42 24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Subscribe on YouTube\r\n        <\/a>\r\n    <\/div> 1.33. This means that the company has $1.33 in debt for every $1 in equity.<\/p>\n<p>To calculate the fixed assets, we need to know the proprietary funds and the proprietary ratio. We are given that the proprietary funds are Rs. 1,60,000 and the proprietary ratio is 0.75. Therefore, the fixed assets are:<\/p>\n<p>Fixed assets = Proprietary funds * Proprietary ratio<br \/>\n= Rs. 1,60,000 * 0.75<br \/>\n= Rs. 1,20,000<\/p>\n<p>We can also calculate the fixed assets by using the following formula:<\/p>\n<p>Fixed assets = Current assets + Non-current assets &#8211; Current liabilities<br \/>\n= Rs. 4,00,000 + Rs. 1,60,000 &#8211; Rs. 1,60,000<br \/>\n= Rs. 7,20,000<\/p>\n<p>Therefore, the fixed assets are Rs. 7,20,000.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Join Our Telegram Channel Subscribe on YouTube<\/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":[],"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>Given, Current Assets Rs. 4,00,000 Current Liabilities Rs. 1,60,000 Reserves &amp; Surplus Rs. 1,60,000 Proprietary Ratio (Fixed Assets\/Proprietary Funds) 0.75 Fixed Assets will be<\/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\/given-current-assets-rs-400000-current-liabilities-rs-160000-reserves-surplus-rs-160000-proprietary-ratio-fixed-assets-proprietary-funds-0-75-fixed-assets-will-be\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Given, Current Assets Rs. 4,00,000 Current Liabilities Rs. 1,60,000 Reserves &amp; Surplus Rs. 1,60,000 Proprietary Ratio (Fixed Assets\/Proprietary Funds) 0.75 Fixed Assets will be\" \/>\n<meta property=\"og:description\" content=\"Join Our Telegram Channel Subscribe on YouTube\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/given-current-assets-rs-400000-current-liabilities-rs-160000-reserves-surplus-rs-160000-proprietary-ratio-fixed-assets-proprietary-funds-0-75-fixed-assets-will-be\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2024-04-15T22:59:04+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=\"1 minute\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Given, Current Assets Rs. 4,00,000 Current Liabilities Rs. 1,60,000 Reserves & Surplus Rs. 1,60,000 Proprietary Ratio (Fixed Assets\/Proprietary Funds) 0.75 Fixed Assets will be","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\/given-current-assets-rs-400000-current-liabilities-rs-160000-reserves-surplus-rs-160000-proprietary-ratio-fixed-assets-proprietary-funds-0-75-fixed-assets-will-be\/","og_locale":"en_US","og_type":"article","og_title":"Given, Current Assets Rs. 4,00,000 Current Liabilities Rs. 1,60,000 Reserves & Surplus Rs. 1,60,000 Proprietary Ratio (Fixed Assets\/Proprietary Funds) 0.75 Fixed Assets will be","og_description":"Join Our Telegram Channel Subscribe on YouTube","og_url":"https:\/\/exam.pscnotes.com\/mcq\/given-current-assets-rs-400000-current-liabilities-rs-160000-reserves-surplus-rs-160000-proprietary-ratio-fixed-assets-proprietary-funds-0-75-fixed-assets-will-be\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2024-04-15T22:59:04+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/given-current-assets-rs-400000-current-liabilities-rs-160000-reserves-surplus-rs-160000-proprietary-ratio-fixed-assets-proprietary-funds-0-75-fixed-assets-will-be\/","url":"https:\/\/exam.pscnotes.com\/mcq\/given-current-assets-rs-400000-current-liabilities-rs-160000-reserves-surplus-rs-160000-proprietary-ratio-fixed-assets-proprietary-funds-0-75-fixed-assets-will-be\/","name":"Given, Current Assets Rs. 4,00,000 Current Liabilities Rs. 1,60,000 Reserves & Surplus Rs. 1,60,000 Proprietary Ratio (Fixed Assets\/Proprietary Funds) 0.75 Fixed Assets will be","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2024-04-15T22:59:04+00:00","dateModified":"2024-04-15T22:59:04+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"breadcrumb":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/given-current-assets-rs-400000-current-liabilities-rs-160000-reserves-surplus-rs-160000-proprietary-ratio-fixed-assets-proprietary-funds-0-75-fixed-assets-will-be\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/exam.pscnotes.com\/mcq\/given-current-assets-rs-400000-current-liabilities-rs-160000-reserves-surplus-rs-160000-proprietary-ratio-fixed-assets-proprietary-funds-0-75-fixed-assets-will-be\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/exam.pscnotes.com\/mcq\/given-current-assets-rs-400000-current-liabilities-rs-160000-reserves-surplus-rs-160000-proprietary-ratio-fixed-assets-proprietary-funds-0-75-fixed-assets-will-be\/#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":"Given, Current Assets Rs. 4,00,000 Current Liabilities Rs. 1,60,000 Reserves &#038; Surplus Rs. 1,60,000 Proprietary Ratio (Fixed Assets\/Proprietary Funds) 0.75 Fixed Assets will be"}]},{"@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\/d97f17072bfa490596c8f78363955d55?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/d97f17072bfa490596c8f78363955d55?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\/49664"}],"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=49664"}],"version-history":[{"count":0,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/49664\/revisions"}],"wp:attachment":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/media?parent=49664"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/categories?post=49664"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/tags?post=49664"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}