Classical

Financial and Management Accounting - Financial and Management Accounting MCQ

31:  

Acid test ratio should normally be ----

A.

2:1

B.

1:1

C.

1:2

D.

2:2

 
 

Option: B

Explanation :


32:  
Match List-I (objectives of analysis) with List -II (ratios to be computed) and select the correct answer using the codes given below:
        List -I                                                       List - II
l. Trading on Equity                                  a. Earning per share
2. Efficiency of inventory control             b. Liquidity Ratio
3. Overall Efficiency                                  c. Capital Gearing
4. Immediate solvency                            d. Stock turnover Ratio
A.

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

B.

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

C.

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

D.

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

 
 

Option: B

Explanation :


33:  
Which of the following is a type of budget according to function?
A.

Fixed Budget

B.

Operating Budget

C.

Long term Budget

D.

Flexible Budget

 
 

Option: B

Explanation :


34:  
In the computation of the debtors turnover ratio accounts receivable includes
A.

Debtors and B/R

B.

Creditors and B/P

C.

Bank overdraft and loan

D.

Debtors and creditors

 
 

Option: A

Explanation :


35:  
Identify the formula that is used to calculate the capital turnover ratio
A.

Credit sales/ Capital employed

B.

Credit sales/net worth

C.

Net sales/ Average accounts payable

D.

Net sales/Capital employed

 
 

Option: D

Explanation :




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