Classical

Financial and Management Accounting - Financial and Management Accounting MCQ

51:  
The profit on the reissue of forfeited share are transferred to
A.

Capital A/ c

B.

Capital Reserve

C.

Profit & Loss A/c

D.

General Issues

 
 

Option: B

Explanation :


52:  
What does creditors turnover ratio take into account?
A.

Total credit sales

B.

Total credit purchase

C.

Total cash sales

D.

Total cash purchases

 
 

Option: B

Explanation :


53:  
The current ratio of a company is 2: 1. Which of the following suggestions would improve the ratio?
A.

To pay a current liability

B.
To borrow money on an interest-bearing promissory note
C.

To purchase stocks for cash

D.
To give an interest-bearing promissory note to a creditor to whom money was owed on current account
 
 

Option: B

Explanation :


54:  
The direct advantages of accounting do not include
A.

Preparation of financial statements

B.

Comparison of results

C.

Competitive advantage

D.

Information to interested groups

 
 

Option: C

Explanation :


55:  
The basic rule of book-keeping "Debit all expenses and losses and credit all gains and incomes" is applicable to
A.

Personal account

B.

Real account

C.

Nominal account

D.

None of the above

 
 

Option: C

Explanation :




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