Classical

Financial and Management Accounting - Financial and Management Accounting MCQ

6:  
Identify the item that is not taken into account in computing the current ratio.
A.

Bank overdraft

B.

Bank

C.

Stock

D.

Cash

 
 

Option: A

Explanation :


7:  
Dividing the net profit by the paid up amount of equity share capital yields __ .
A.

Temporary investment

B.

Earning per share

C.

Rate of return on equity share capital

D.

None of the above

 
 

Option: C

Explanation :


8:  
Price-earning ratio is equal to market price per equity share divided by ___ 
A.

Earning per share

B.

Current assets

C.

Current liabilities

D.

Liquid assets

 
 

Option: A

Explanation :


9:  
The sale of inventory on account will cause the quick ratio to
A.

Decrease

B.

Increase

C.

Not change

D.

Become zero

 
 

Option: B

Explanation :


10:  
Given that fixed assets are at Rs. 600,000 current assets Rs. 400,000 share capital Rs. 500,000, fixed liabilities Rs. 2,50,000, Current liabilities Rs. 2,50,000, the solvency ratio will be
A.

20%

B.

30%

C.

40%

D.

50%

 
 

Option: A

Explanation :
Total assets/total liabilities=solvency ratio which means 1000000/500000=20%




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  • These questions can be downloaded as Financial and management  accounting online study material pdf.
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  • This section can also be used by commerce students for improving their knowledge in Financial and management accounting
  • These mcq can also be used by any student of XI or XII standard who has opted to study commerce to increase his knowledge.