Classical

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

26:  
Which of the following pairs is not correctly matched?
A.
Accounting equation: Assets = Liabilities + Capital
B.

Accounting year: 1st April to 31st March

C.
Accrual concept: Recognising revenue on receipt of cash
D.
Cost concept: Recognising transactions at historical cost
 
 

Option: C

Explanation :


27:  
Match List-I with List-II and select the correct answer using the codes given below the lists:
   List-I                                              List-II
a. Leverage Ratio                       I. Short-term solvency
b. Liquidity Ratio                        II. Earning capacity
c. Turn-over Ratio                     III . Relationship of Debt and Equity
d. Profitability Ratio                  IV. Efficiency of Assets Management
A.

a   b    c   d

II    I    III   IV

B.

a   b    c   d

III   II    I   IV

C.

a   b    c   d

IV  III    I   II

D.

a   b    c   d

III   I    IV   II

 
 

Option: D

Explanation :


28:  
Capital employed equals
1. Fixed Assets + Working Capital
2. Long-term debt + Share Capital + Reserves & Surplus - Fictitious Assets - Non-business Assets
3. Tangible Fixed and Intangible Assets + Current Assets - Current liabilities 
Select the correct answer using the codes given below:
A.

1 and 2

B.

2 and 3

C.

1 and 3

D.

1,2 and 3

 
 

Option: D

Explanation :


29:  
Which of the following is a type of responsibility centre?
A.

Cost or Expense Centre

B.

Profit Centre

C.

Investment Centre

D.

All of the above

 
 

Option: D

Explanation :


30:  
Amount of premium on issue of shares is decided by the __ as per the guidelines issued by SEBI
A.

Company Law Board

B.

Board of Directors

C.

Registrar of Companies

D.

Shareholders.

 
 

Option: B

Explanation :




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