71.
Assertion (A) Cash flow statement as per the financial statements as well is incapable in revealing the overall financial position of a firm.
Reason (R) Cash is an important constituent of the working capital based on the recorded facts only.

73.
. . . . . . . . is the maximum possible alternative earning that might have been earned if the productive capacity is put to some alternative use.

75.
Which of the following are the benefits of responsibility accounting?
I. It facilitates the centralization of decision-making.
II. It provides a system of closer control.
III. It measures the performance of individuals in an objective manner.
IV. It develops a sense of cost-consciousness among managers and their subordinates.

77.
Match the items in List-I with the items in List-II and indicate the correct answer.
List-I List-II
a. Debt-equity ratio 1. Net profit before interest and tax/Interest on long-term loans
b. Proprietary ratio 2. Equity share capital + Reserves/Preference share capital + Interest bearing finance
c. Interest coverage ratio 3. Long-term debts/Shareholder's Funds
d. Capital gearing ratio 4. Shareholder's Funds/Total Assets