Explanation

In a bank reconciliation, deposits in transit are added to the bank balance.

They represent amounts received and recorded by the company but not yet reflected in the bank's statement.

Explanation

Junk bonds are suitable for investors comfortable with high risk.

For retail investors, these securities can play an important role in their portfolio.

It provided the risk is understood.

Explanation

The term EVA stands for Economic Value Added.

It is a measure of a company's financial performance that calculates the value created beyond the required return on its capital.

Explanation

Deterioration in the management of working capital typically refers to the debtors collection period has increased.

This indicates that the company is taking longer to collect payments from its customers.

It affecting its liquidity and working capital management.

Explanation

A key factor is one which restricts the volume of production.

It is the limiting factor in a business process that determines the maximum output or capacity of production.

Explanation

According to Kurt Lewin, Restraining is not a stage in the change process.

The correct stages are Unfreezing, Changing, and Refreezing.

These stages represent the process of preparing for, implementing, and solidifying changes within an organization.

Explanation

Liquidity ratios determine a company's ability to cover short-term obligations and cash flows.

Solvency ratios are concerned with a longer-term ability to pay ongoing debts.

Explanation

Small items like pencils and pens are written off within a year according to the materiality concept.

This concept allows minor expenses to be immediately recorded rather than capitalized, as their impact on financial statements is negligible.

Explanation

The cost which is to be incurred even when a business unit is closed is a shutdown cost.

The shut down price is the minimum price a business needs to justify remaining in the market in the short run.

Explanation

The cost concept basically recognises historical cost or the acquisition cost of the asset.

The value of an asset is to be determined on the basis of historical cost.