Classical

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

31:  
Which one in the following is least suited for measuring return on investment?
A.

Income

B.
Net operating income before interest and taxes, average total assets
C.
Operating income ratio, Total assets turnover
D.
Net income after interest but before taxes average total shareholders equity
 
 

Option: C

Explanation :


32:  

The equation for the Debt equity ratio is

A.

Long term Debt / Equity Capital

B.

Liquid Assets / Current Liability

C.

Current Assets / Current Liability

D.

Net Profit / Net Sales

 
 

Option: A

Explanation :


33:  
Which of the following accounting standards is not mandatory in India?
A.
Fixed assets accounting and revenue recognition
B.

Inventory and depreciation accounting

C.

Non-monetary assets and fixed assets

D.

Monetary assets and depreciation accounting

 
 

Option: C

Explanation :


34:  
Which of the following is a type of efficiency ratio?
A.

Debt-equity Ratio

B.

Earning Per share

C.

Working Capital turnover Ratio

D.

Net Profit Ratio

 
 

Option: C

Explanation :


35:  
Match List I (Transaction) with List II (Entry to be made) and select the correct answer by using the codes given below the list:
    List-I                                                          List- II
1. Loss on realisation                         (a) Debits partner's capital A/C
2. Profit on realisation                         (b) Credit realisation A/C
3. Assets sold                                      (c) Credit Partner's A/C
4. Creditors paid                                  (d) Debit realisation A/C
A.

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

B.

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

C.

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

D.

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

 
 

Option: A

Explanation :




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