Classical

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

51:  
Consider the particulars given below:
Sales                    Rs.60,000
Variable cost       Rs.25,000
Fixed cost            Rs.30,000
Based on these data, the operating leverage shall be

 

A.

5

B.

7

C.

8

D.

9

 
 

Option: B

Explanation :


52:  
The following four assets normally appear in the balance sheet
1. Advance salary
2. Copyright
3. Preliminary expenses
4. Loose tools
The correct order in which these are to appear in the balance sheet if drawn in order of permanency will be
A.

4,2,1,3

B.

3,2,4,1

C.

1,2,3,4

D.

2,4,1,3

 
 

Option: D

Explanation :


53:  
Match List-I with List-II and select the correct answer using the codes given below the lists:
    List-I                                                                   List-II
a. Reducing capital                                    I. Contribution margin
b. Sales> Variable cost                            II. Reorganization
c. Sales> Break even sales                   III. Absorption
d. Take-over of firm                                  IV. Margin of safety
A.

a    b    c     d

II    I     III    IV

B.

a    b    c     d

I     II     III    IV

C.

a    b    c     d

I      II     IV   III

D.

a    b    c     d

II    I     IV    III

 
 

Option: D

Explanation :




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