Classical

Financial and Management Accounting - Financial and Management Accounting MCQ

46:  
In case of a limited company, the term financial statements includes
A.

Profit and loss and balance sheet

B.
Profit and loss account, profit and loss appropriation account and balance sheet
C.

Balance sheet

D.

None of the above

 
 

Option: B

Explanation :


47:  
The issue of equity capital in exchange of plant and machinery will cause the return on equity capital to
A.

Fluctuate

B.

Decrease

C.

Increase

D.

Remain unchanged

 
 

Option: B

Explanation :


48:  
The return on equity capital ratio is obtained by dividing net profit (after tax) less preference dividend by
A.

Equity capital

B.

Total capital

C.

Current assets

D.

Current liabilities

 
 

Option: A

Explanation :


49:  

The net profit ratio is the ratio of net profit to

A.

Net cash sales

B.

Net credit sales

C.

Net total sales

D.

Capital employed

 
 

Option: C

Explanation :


50:  
Identify the transaction that has no effect on the current ratio.
A.

Preference shares redeemed

B.

Bills receivable collected

C.

Motor car sold for cash

D.

Machinery bought for cash

 
 

Option: B

Explanation :




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