Classical

Financial and Management Accounting - Financial and Management Accounting MCQ

51:  
The profit on the reissue of forfeited share are transferred to
A.

Capital A/ c

B.

Capital Reserve

C.

Profit & Loss A/c

D.

General Issues

 
 

Option: B

Explanation :

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52:  
What does creditors turnover ratio take into account?
A.

Total credit sales

B.

Total credit purchase

C.

Total cash sales

D.

Total cash purchases

 
 

Option: B

Explanation :

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53:  
The current ratio of a company is 2: 1. Which of the following suggestions would improve the ratio?
A.

To pay a current liability

B.
To borrow money on an interest-bearing promissory note
C.

To purchase stocks for cash

D.
To give an interest-bearing promissory note to a creditor to whom money was owed on current account
 
 

Option: B

Explanation :

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NEERAJ said: (9:01pm on Wednesday 25th April 2018)
But how if we issue promissory note our liabilities also increase like if we issue rs 50000 promissory note current liability and cash both increase so it's reduce the current ratio if we pay current lliability it's improve the current ratio so ans will be A

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54:  
The direct advantages of accounting do not include
A.

Preparation of financial statements

B.

Comparison of results

C.

Competitive advantage

D.

Information to interested groups

 
 

Option: C

Explanation :

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55:  
The basic rule of book-keeping "Debit all expenses and losses and credit all gains and incomes" is applicable to
A.

Personal account

B.

Real account

C.

Nominal account

D.

None of the above

 
 

Option: C

Explanation :

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