Classical

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

11:  
Proprietary ratio indicates the relationship between proprietor's funds and __ .
A.

Reserve

B.

Total assets

C.

Share capital

D.

Debentures

 
 

Option: B

Explanation :


12:  
For the purpose of analysing change in financial position, enterprises prepare
A.

Balance Sheet and Profit & Loss A/ c

B.
Cash flow statement and Funds flow statement
C.
Statement of cash from operations and Balance Sheet
D.
Statement of changes in working capital and Statement of cash from operations.
 
 

Option: B

Explanation :


13:  
Ratios may be classified as
1 Profitability ratios
2. Coverage ratios
3. Turnover ratios
4. Financial ratios
5. Leverage ratios
Select the correct answer using the codes given below:
A.

1,3 and 4

B.

1,2,3 and 4

C.

1,3,4 and 5

D.

1,2,3,4 and 5

 
 

Option: D

Explanation :


14:  
Legal cost incurred in case of disputed land and building is classified as
A.

Operating activity

B.

Investing activity

C.

Financing activity

D.

All of the above

 
 

Option: B

Explanation :


15:  
Match List-I with List-II and select the correct answer using the codes given below the lists:
List-I (Transactions)                                        List-II (Impact on current ratio)
a. Goods sold at profit                                     I. Improvement
b. Creditors paid                                              II. Deterioration
c. Debts realised                                            III. No change
d . Materials purchased on credit.
A.

a    b    c    d

I     III    II   II

B.

a    b    c    d

II     III    I   II

C.

a    b    c    d

I     I     III   II

D.

a    b    c    d

II     I    III   III

 
 

Option: C

Explanation :




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