Classical

Financial and Management Accounting - Financial and Management Accounting MCQ

11:  
Return on total assets ratio is equal to _____ divided by total asset
A.

Current liabilities

B.
Net income before preference dividend and interest paid
C.

Current assets

D.

Earning per share

 
 

Option: B

Explanation :


12:  
Which of the following Iiabilities are taken into account for the quick ratio? 
1. Bills payable 2. Sundry Debtors
3. Loans             4. Debtors
5. Bank overdraft

 

A.

1,2, and 5

B.

2,3, and 4

C.

1,3, and 4

D.

2, 4, and 5

 
 

Option: A

Explanation :


13:  
If the stock turnover ratio is 4 times and the collection period is 30 days the operating cycle would be
A.

30 days

B.

60 days

C.

90 days

D.

120 days

 
 

Option: C

Explanation :


14:  
Given that current liabilities are at Rs. 300,000, current ratio is 3:1 and quick ratio is 1:1, the value of stock will be:
A.

Rs. 600,000

B.

Rs. 1,600,000

C.

Rs. 900,000

D.

Rs. 12,00,000

 
 

Option: A

Explanation :


15:  
If the current ratio stands at 2 : 1 an equal increase in current assets and current liabilities would ------- the current ratio.
A.

Decrease

B.

increase

C.

Not change

D.

Cause fluctuations in

 
 

Option: A

Explanation :

 




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