Classical

Financial and Management Accounting - Financial and Management Accounting MCQ

26:  
The gross profit ratio is the ratio of gross profit to
A.

Net cash sales

B.

Net credit sales

C.

Closing stock

D.

Net total sales

 
 

Option: D

Explanation :


27:  
Acid test ratio is equal to quick current assets divided by ____
A.

Current liabilities

B.

Current assets

C.

Total liabilities

D.

Total assets

 
 

Option: A

Explanation :


28:  
Match List-I with List-II and select the correct answer using the codes given below the lists
    List-I                                             List-II
1. Leverage Ratio                      a. Liquidity position
2. Acid test                                  b. Efficiency of assets management
3. Turnover Ratio                      c. Management of working Capital
4. Current Ratio                        d. Debt and equity relationship

 

A.

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

B.

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

C.

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

D.

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

 
 

Option: D

Explanation :


29:  
Which of the following assets would be taken into account for working capital turnover ratio.
1. Plant          2. Stock
3. Mortgage  4. Sales
5. Reserve    6. Bank
 
A.

1,5, and 6

B.

4,5, and 6

C.

2,4, and 6

D.

3,5, and 6

 
 

Option: C

Explanation :


30:  

In the debt equity ratio, external equity refers to

A.

Only Debentures

B.

Only current liabilities

C.

Debentures and current liability

D.

Reserves

 
 

Option: C

Explanation :




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