(a)Ulo organization had bought printers 5 years prior which are expected for substitution. The expense of the printers was ' 75,00,000 and the organization devalues these class of resources on a straight-line reason for a very long time. The printers are relied upon to figure it out

7,55688.

There is a proposition to supplant all the printers in the organization and as a Finance Manager; you are given the accompanying other options:

Proposition 1: Purchase another Class of refined organization printers at an expense of

1,00,00,000 which would be deteriorated over a time of 5 years and expected to figure it out

' 10,00,000 toward the end. The buy could either be supported through a credit at 14% repayable in 5 equivalent yearly portions toward the year's end. PVAF at 14% for a very long time is 3.433544

Proposition 2:

Corono had presented a proposition to assume control over the current printers and give on lease the new class of modern organization printers for the following 5 years at a yearly rental of 18,00,000 payable toward the year's end with a proviso to build the rentals by ' 2,43,422 on a yearly premise.

You are needed to recommend the best option in contrast to the administration expecting the organization's annual assessment rate is half and markdown rate is 7%.

You may disregard acknowledgment of scrap esteem and their momentary capital additions/misfortune under both the choices.

2.Stock should be valued at

a)Cost

b)Market price

c)Cost price or market price whichever is lower

d)Cost less depreciation

3.Valuation of Fixed Assets is based on the concept

a)Going concern

b)Conservation

c)Money measurement

d)Dual aspect

4.Valuation means

a)Calculating value of assets

b)Checking the value of assets

c)Checking the physical existence of assets

d)Examining the authenticity of assets

5." Auditor is not valuer" was stated in

a)Kingston Cotton Mills case

b)London & General Bank case

c)Lee . V . Neuchatel Co. Ltd case

d)London oil Storage Co. case

6.Fixed assets are valued at

a)Cost

b)Market price

c)Cost price or market price whichever is less

d)Cost less depreciation

7.Floating assets are valued at

a)Cost

b)Market price

c)Cost price or market price whichever is less

d)Cost less depreciation

8.The scope of work of internal audit is decided by the

a)Share holders

b)Management

c)To improve financial control

d)All of the above

9.Outstanding expenses should be verified with the help of

a)Cash book

b)Balance book

c)Journal proper

d)None of the above

10.Book debts should be verified with the help of

a)Balance sheet

b)Amount received from Debtors

c)Debtors schedule

d)Certificate from the management