Classical

Financial Accounting - Financial Accounting Multiple Choice Questions

11:  

Current Ratio can be computed by

A.

Stock / Debtors

B.

Assets / Stock

C.

Current Assets / Current Liabilities

D.

(Stock + Cash + Share) /100

 
 

Option: C

Explanation :


12:  

Degree of operating leverage can be computed by

A.

(% ∆ in Operating Income) / (% ∆ in sales )

B.

% Sales / % Profit

C.

Sales /Cost of production

D.

Sales / Fixed Cost

 
 

Option: D

Explanation :


13:  

Debt Equity Ratio is computed by

A.

Reserve / Capital

B.

(Reserve + Capital + Loss) / 2

C.

Assets / Current Assets

D.

Total Liabilities / Shareholders Equity

 
 

Option: D

Explanation :


14:  

Suppliers and creditors of a firm are interested in

A.

Profitability position

B.

Liquidity position

C.

Market share position

D.

Debt position

 
 

Option: B

Explanation :


15:  

Which formula may be used for 'EPS'?

A.
14506
B.
14506
C.
14506
D.
14506
 
 

Option: C

Explanation :




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