Click to Get updated NTA UGC NET CS Test Series           Study Material for UGC NET Computer Science- 2019

# Financial and Management Accounting - Financial and Management Accounting MCQ

11:
Return on total assets ratio is equal to _____ divided by total asset
 A. Current liabilities B. Net income before preference dividend and interest paid C. Current assets D. Earning per share Answer Report Discuss Option: B Explanation : Click on Discuss to view users comments. Write your comments here:
12:
Which of the following Iiabilities are taken into account for the quick ratio?
1. Bills payable
2. Sundry Creditors
3. Loans
4. Debtors
5. Bank overdraft

 A. 1, 3 and 5 B. 2,3, and 4 C. 1,3, and 4 D. 2, 4, and 5 Answer Report Discuss Option: A Explanation : Quick ratio is also known as liquid ratio or acid test ratio. Current ratio provides a rough idea of the liquidity of a firm so subsequently a second testing device was developed named as acid test ratio or quick ratio. It establishes relationship between liquid assets and current liabilities. Quick ratio = Liquid (quick) assets / Current Liabilities Click on Discuss to view users comments. VIJYA said: (8:24pm on Monday 5th September 2016) quick ratio =Q A/'Q LQ A= S D,Q L =B P, LOANS Rupinder said: (4:06pm on Sunday 6th November 2016) Sundry debtors is not liability CHANCHAL said: (10:19pm on Saturday 18th February 2017) SUNDRY CREDITOR INSTEAD OF SUNDRY DEBTORS NISHA said: (10:44pm on Wednesday 21st February 2018) ANSWER SHOULD BE 'D'.. AS LOANS ARE NOT A PART OF CL.. Vikas said: (12:36am on Wednesday 2nd May 2018) Quick liabilities = b/p creditors only Write your comments here:
13:
If the stock turnover ratio is 4 times and the collection period is 30 days the operating cycle would be
 A. 30 days B. 60 days C. 90 days D. 120 days Answer Report Discuss Option: C Explanation : operating cycle = inventory conversion period + average collection period Click on Discuss to view users comments. shreya said: (7:15pm on Tuesday 12th July 2016) no.............. its 120 days DURGA PRASAD MOHAPATRA said: (9:58pm on Thursday 29th June 2017) yes 90days i.e 360/4=90days Nagaraj said: (8:06am on Wednesday 25th October 2017) If it is 90, I think no need collection period. I'm I right??? Vikas sir said: (12:39am on Wednesday 2nd May 2018) Operating cycle = CA days - CL days In this question = 90 days inventories 30 days collection periods Write your comments here:
14:
Given that current liabilities are at Rs. 300,000, current ratio is 3:1 and quick ratio is 1:1, the value of stock will be:
 A. Rs. 600,000 B. Rs. 1,600,000 C. Rs. 900,000 D. Rs. 12,00,000 Answer Report Discuss Option: A Explanation : Click on Discuss to view users comments. Write your comments here:
15:
If the current ratio stands at 2 : 1 an equal increase in current assets and current liabilities would ------- the current ratio.
 A. Decrease B. increase C. Not change D. Cause fluctuations in Answer Report Discuss Option: A Explanation :   Click on Discuss to view users comments. kishor kumar said: (3:23pm on Sunday 26th June 2016) reatio will be incereased pooja sharma said: (3:22am on Friday 15th September 2017) take an example...like if current assets are 400000 and current liabilities are 200000 , then current ratio will be 2:1 and now if we increase current assets and current liablities by 50000...then current assets will be 450000 and current liabilities will be 250000, then the ratio will be 1.8 : 1 Gautam Sanghpriya said: (2:12am on Sunday 1st October 2017) CURRENT ASSETS = 2000CURRENT LIABILITIES = 1000IF THERE IS AN INCREASE IN BOTH OF RS. 1000 IN BOTH, THEN THE AMOUNT WILL BE C.A. = 2000 1000 = 3000C.L . = 1000 1000 = 2000CURRENT RATIO = C.A./C.L. =3000/2000 = 1.5/1 or 3/2 =3:2so there is a decrease in the ratio. Write your comments here: X