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Financial and Management Accounting - Financial and Management Accounting Objective Type Questions

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1:  
Accounting ratios can be expressed in the following forms:
1 Pure number
2. Percentage
3. Times
4. Fraction
Select the correct answer using the codes given below
A.

1 and 2
B.

1,2 and 3
C.

2 and 3
D.

1,2,3 and 4
 
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Option: D

Explanation :

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2:  
The firm is said to be more geared, if equity capital is more than the debentures and -------
A.

Preference share capital
B.

Loan
C.

Both (a) +(b)
D.

Total assets
 
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Option: C

Explanation :

Capital Gearing Ratio = (Equity Share Capital ) / (Preference Share Capital + Debentures + Loans)

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3:  
Which of the following items is considered as a revenue expenditure?
A.
Expenditure by way of maintenance that has increased productivity
B.
Repair of a gearbox in a car that has enhanced its operational life.
C.
Complete overhaul of a machine, spending around 20% of its value.
D.
Changing a small component of a machine to maintain its operating efficiency.
 
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Option: D

Explanation :

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4:  
The basis adopted for piecemeal distribution of cash among the partners should be such that amounts finally left unpaid are in the ratio in which
A.

Capital stands on the date of dissolution
B.

Profits and losses are shared
C.
Capital balances stood at the beginning of partnership
D.

Private assets appear on the date of dissolution.
 
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Option: B

Explanation :

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5:  
A company can buy-back its own shares out of
1 Free reserves
2 Securities premium account
3. Proceeds of any shares
Select the correct answer using the codes given below:
A.

1 and 2
B.

1 and 3
C.

2 and 3
D.

1, 2 and 3
 
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Option: D

Explanation :

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  • These objective type questions answers can be used to gain a credit score in various undergraduate and post graduate commerce courses like B com and Mcom
  • These questions answers can be used in the preparation of ugc net exams.
  • These questions can be downloaded as Financial and management  accounting online study material pdf.
  • This section can be used for the preparation of quizzes by any commerce student.
  • This section can also be used by commerce students for improving their knowledge in Financial and management accounting
  • These mcq can also be used by any student of XI or XII standard who has opted to study commerce to increase his knowledge.

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