Financial and Management Accounting - Financial and Management Accounting Multiple Choice Questions

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26:  

Assertion (A).ROI is the index to study management efficiency.

Reason (R). Earning power in relation to total investment is measured by ROl.

A.	Both A and R are true and R is the correct explanation of A.
B.	Both A and R are true but R is not a correct explanation of A.
C.	A is true but R is false
D.	A is false but R is true.
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	Option: B Explanation : Click on Discuss to view users comments. Write your comments here: Updating your Comments.. Updating your Comments..

27:  

If a particular current asset in the current year is more than what was in the previous year, then the change in the current assets results in of working capital.

A.	decrease
B.	increase
C.	zero
D.	none of these
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	Option: B Explanation : Click on Discuss to view users comments. Write your comments here: Updating your Comments.. Updating your Comments..

28:  

A firm earns a profit of Rs. 15,000 per year. In the same business a 10% return is generally expected. The total assets of the firm are Rs. 1,70,000. The value of other liabilities is Rs. 60,000. What is the value of goodwill?

A.	Rs. 20,000
B.	Rs. 30,000
C.	Rs. 40,000
D.	Rs. 50,000
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	Option: C Explanation : Click on Discuss to view users comments. Write your comments here: Updating your Comments.. Updating your Comments..

29:  

Which one of the following is capital expenditure?

A.	Cost of advertisement
B.	Purchase of a delivery van
C.	Purchase of raw material
D.	Purchase of machine oil
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	Option: B Explanation : Click on Discuss to view users comments. Write your comments here: Updating your Comments.. Updating your Comments..

30:  

EBIT /Total Assets Ratio is

A.	Liquidity Ratio
B.	Profitability Ratio
C.	Solvency Ratio
D.	Turnover Ratio
	Answer Report Discuss
	Option: B Explanation : Click on Discuss to view users comments. Write your comments here: Updating your Comments.. Updating your Comments..

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