Classical

Financial and Management Accounting - Financial and Management Accounting MCQ

66:  
Which one of the following statements is not correct?
A.
Bonus shares can be issued out of General Reserves
B.
Bonus shares can be issued in lieu of dividends
C.
The partly-paid shares, if any, should be made fully paid up before the company can make a bonus issue
D.
The bonus issue should be out of free reserves built out of the genuine profits or security premium collected in cash only
 
 

Option: B

Explanation :


67:  

EPS is calculated as

A.

EBIT / Equity shares

B.
(EBIT - Preference Dividend) / Equity shares
C.

EIT / Equity shares

D.
(EAT - Preference Dividend) / Equity shares
 
 

Option: D

Explanation :


68:  
Match List I (Financial Statements and Accounts) with List II (special matters associated with statements and accounts) and select the correct answer using the codes given below the lists:
    List I                                                                                      List II
a. Receipts and Payments Account                                 I. Revenue
b. Income and Expenditure Account                               II. Cash
c. Dividend Equalisation Reserve                                 llI. Liability
d. Club subscription received in Advance Account    IV. Balance Sheet
                                                                                             V. General Reserve
A.

 a   b    c    d

 II    I    IV    III

B.

 a   b    c    d

 III   II   IV    V

C.

 a   b    c    d

 II    I     V    III

D.

 a   b    c    d

 I    II    IV    V

 
 

Option: A

Explanation :


69:  
Which one of the following ratios is most important for judging the long-term solvency of a firm?
A.

Debt-Equity Ratio

B.

Stock Turnover Ratio

C.

Return on Investment

D.

Fixed Assets Turnover Ratio

 
 

Option: A

Explanation :


70:  
Match List I (Items) with List II (Heads in Balance Sheet) and select the correct answer using the codes given below the lists
     List I                                                                                               List II
a. Loss on issue of debentures                                              I. Reserves and Surpluses
b. Unclaimed dividend                                                             II. Miscellaneous Expenditure
c. Prepaid rent                                                                          IlI. Current Liability
d. Profit prior to incorporation                                                IV. Current Assets
A.

 a    b    c    d

III    II     I     IV

B.

 a    b    c    d

III    II     IV     I

C.

 a    b    c    d

 II    III    IV     I

D.

 a    b    c    d

 II    III     I     IV

 
 

Option: C

Explanation :




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