Classical

Financial and Management Accounting - Financial and Management Accounting MCQ

21:  
Which of the following transactions will
improve the current Ratio?
1. Bills receivable Dishonoured
2. Cash collected from customers
3. Issue of new shares
4. Payment of preliminary expenses by way of equity shares
Select the correct answer using the codes given below

 

A.

1, 2, and 3

B.

only 4

C.

only 3

D.

2 and 4

 
 

Option: C

Explanation :

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22:  
The stock turnover ratio may be calculated as ___ 
A.

Cost of goods sold / Average stock

B.

Turnover at cost / stock at cost

C.

Turnover at selling price / Stock at selling price

D.

Any of the above

 
 

Option: A

Explanation :

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23:  

ROI stands for?

A.

Return on Investment

B.

Ratio of Investment

C.

Return of Income

D.

None of these

 
 

Option: A

Explanation :

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24:  
The satisfactory ratio between internal and external equity is  ____
A.

1:1

B.

2:1

C.

3:1

D.

4:1

 
 

Option: A

Explanation :

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25:  
Match List 1- with List-II and select the correct answer using the codes given below the lists
     List-I                                                                 List-II
1. Acid test ratio                                          a. Liquidity ratio
2. Gearing ratio                                          b. Profitability ratio
3. Working capital turnover ratio             c. Leverage ratio
4. Return on capital employed               d. Long term solvency ratio
                                                                      e. Activity ratio
A.

1 - a, 2 - c, 3 - e, 4 - b

B.

1 - b, 2 - e, 3 - a, 4 - c

C.

1 - a, 2 - e, 3 - d, 4 - b

D.

1 - e, 2 - c, 3 - d, 4 - a

 
 

Option: A

Explanation :

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