Financial and Management Accounting - Financial and Management Accounting MCQ

76:  
Unpaid calls are shown in the balance sheet of a company
A.

By adding it to the share capital

B.
By deducting it from the called-up share capital
C.

Under the head 'current assets'

D.

Under the head 'current liabilities'

 
 

Option: B

Explanation :

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77:  
Match List I with List II and select correct answer using the codes given below the lists
   List  I                                             List II
a. Current Ratio                       I. Sufficiency of EBIT to cover interest charges
b. Debt-Equity Ratio               II. Short-term solvency
c. Net Profit Margin Ratio      III. Exposure to financial risk
d. Interest Coverage Ratio   IV. Earning left for shareholders
A.

 a   b   c    d

 II   III   I    IV

B.

 a   b   c    d

 III  II   I    IV

C.

 a   b   c    d

 III  II   IV    I

D.

 a   b   c    d

 II   III   IV    I

 
 

Option: D

Explanation :

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78:  
Match List I with List II and select correct answer using the codes given below:
     List I                                       List II
a. G.P. Ratio                           I. Convention of conservatism
b. Cash budget                     II. Profitability
c. E.O.Q.                                 III. Inventory management
d. Provision for bad debts  IV. Management of liquid assets
A.

 a    b    c    d

 II     IV    I    III

B.

 a    b    c    d

 IV   II    III    I

C.

 a    b    c    d

 IV    II    I    III

D.

 a    b    c    d

 II     IV   III   I

 
 

Option: D

Explanation :

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79:  
Match List I (Ratios) with List II (Method of calculation) and select correct answer using the codes given the lists
      List I                                       List II
a. Debt-EquityRatio                   I. Equity Capital / Total Debt Capital
b. Proprietary Ratio                   II. External Equity / Owner's Equity
c. Capital Gearing Ratio         III. Total Shareholders Funds / Total Assets
d. ROI                                         IV. Profit before Interest and Tax / Net Assets
A.

 a    b   c    d

 II    III   I    IV

B.

 a    b   c    d

 II    III   IV   I

C.

 a    b   c    d

 III   II    I    IV

D.

 a    b   c    d

 III   II    IV   I

 
 

Option: A

Explanation :

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80:  
Match List I with List II and select correct answer using the codes given below:
      List I                                                List II
a. Financial leverage                  I. Efficiency
b. Quick ratio                               II. Profitability
c. Stock turnover ratio               Ill. Risk
d. Margin on sales                    IV. Liquidity
A.

 a   b   c    d

III   IV   I    II

B.

 a   b   c    d

IV   III   I    II

C.

 a   b   c    d

IV   III   II    I

D.

 a   b   c    d

III   IV   II    I

 
 

Option: A

Explanation :

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