Classical

Financial and Management Accounting - Financial and Management Accounting MCQ

41:  
The net income of the company should ideally be ----- times of the fixed internal charges.
A.

3 or 4

B.

4 or 5

C.

5 or 6

D.

6 or 7

 
 

Option: D

Explanation :


42:  

What does the ROI take into account?

A.

Net fixed assets

B.

Shareholder's investment

C.

Net worth

D.

Operating expenses

 
 

Option: A

Explanation :


43:  
If cost of goods sold is Rs. 100,000, other; operating expenses are Rs. 20,000 and total net sales are Rs. 150,000 the operating ratio will be equal to ____
A.

70%

B.

80%

C.

90%

D.

100%

 
 

Option: B

Explanation :


44:  
The ideal ratio between total long term funds and total long terms loan is ---- 
A.

4:1

B.

3:1

C.

2:1

D.

1:1

 
 

Option: C

Explanation :


45:  
The current ratio of a company is 2: 1 which of the following suggestions would Improve, reduce and net change it.
I.   Payment to trade creditors
II.  Sell machinery for cash
Ill. Purchased goods for cash
IV. Issue of equity shares
A.

Decrease, Increase, Increase, No effect

B.

No effect, Increase, Decrease, Increase

C.

Increases, Increase, No effect, Increase

D.

Increase, No effect, Decrease, Increase

 
 

Option: C

Explanation :




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