Which of the following are standards used for measuring performance in finance and accounting?
(A) Capital expenditures
(B) Cost
(C) Inventories
(D) Advertising expenditures
(E) Liquidity
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → (A), (C) and (E) only
(A) Capital expenditures — Correct. Money spent on long-term assets is a standard of finance and accounting.
(B) Cost — Incorrect. Cost is a standard of production, along with quantity, quality and individual job performance.
(C) Inventories — Correct. The level of stock held is a finance and accounting standard.
(D) Advertising expenditures — Incorrect. This is a standard of marketing, along with sales volume, sales expense and the sales-person’s performance.
(E) Liquidity — Correct. The firm’s ability to pay its short-term dues is a finance and accounting standard.
NCERT (2026-27 Edition):
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