### Management Accounting Set 10

This set of Management Accounting Multiple Choice Questions & Answers (MCQs) focuses on Management Accounting Set 10

Q1 | #NAME?
• Trial Balance
• Profit and Loss Account
• Balance sheet
• Income Statement
Q2 | Disclose accounting information
• Balance sheet
• Profit and Loss Account
• Financial statements
Q3 | Afford full diagnosis of the profitability and financial position
• Preparation of Profit and Loss Account
• Balance Sheet
• Final Accounts
• Analysis of financial statements
Q4 | Study of the trend of the same items of two or more balance sheets
• Common size Profit and Loss A/C
• Common size balance sheet
• Comparative Income statement
• Comparative Balance Sheet
Q5 | Expressed as a percentage of each asset to total
• Common size P/L A/C
• Common size Balance Sheet
• Comparative Income Statement
• Trend analysis
Q6 | Ratios of different items for various periods are calculated and compared
• Common size
• Comparative
• Trend analysis
• Ratio analysis
Q7 | Yard stick which measures relationship between two variables
• Financial statements
• Ratio
• Fund Flow analysis
• Cash flow analysis
Q8 | The ratio which depicts the relationship between two items, one of which is drawn from the Balance Sheet and the other from the revenue account
• Current ratio
• Equity Ratio
• Net Profit ratio
• Debtors Turn over Ratio
Q9 | The ratio of liquid asset to current liabilities
• Quick ratio
• Current ratio
• Absolute liquid ratio
• Combined ratio
Q10 | Equity includes --------------
• Equity share capital
• Equity share capital + Preference share capital+-fictitious asset
• Equity capital + Preference share capital + reserves And surplus-fictious asset
• Equity capital + Preference share capital
Q11 | The ratio which shows the relationship b/w share holderâ€™s fund and total assets
• Debit equity ratio
• Proprietary ratio
• Solvency ratio
• Fixed asset
Q12 | Long term solvency of a firm can be measured by
• Current ratio
• Net profit ratio
• Gross profit ratio
• Debt equity ratio
Q13 | The ratio that shows the relationship between fixed asset to share holders fund
• Fixed asset to net worth
• Fixed asset ratio
• Fixed assets turn over ratio
• Net worth ratio
Q14 | The index of efficiency and profitability of the business
• Operating ratio
• Operating profit ratio
• Expense ratio
• Net profit ratio
Q15 | The ratio that includes whether investment in inventory is efficiently used or not
• Inventory turnover ratio
• Working capital turn over ratio
• Fixed asset turn over ratio
• Activity ratio
Q16 | Comparison and interpretation of ratio is known as ---------------------
• Fund flow analysis
• Cash flow analysis
• Ratio analysis
• Trend analysis
Q17 | Powerful tool for analyzing financial statement is ----------
• Trend analysis
• Ratio analysis
• Analysis
• Interpretation
Q18 | The relationship between two amount or variables is measured with the help of ------------
• Ratio
• Trend
• Comparative
• Common size
Q19 | The main aim of the ratio analysis is to help the ----------of the firm
• Owners
• Officials
• Departments
• Management
Q20 | Ratios help the management in evolving market strategies through -----------
• Inter firm comparison
• Intra firm comparison
• Ratios
• None of the above
Q21 | Ratios may be used as a measure of -------------
• Efficiency
• Solvency
• Profitability
• None of the above
Q22 | An example of Balance Sheet ratio is ---------------
• Net profit ratio
• Inventory turn over ratio
• Current ratio
• Fixed asset turn over ratio
Q23 | Income statement ratios are also called -----------
• Operating ratio
• Liquidity ratio
• Activity ratio
• Trend ratio
Q24 | Leverage ratios are also known as -------------- ratios
• Short term solvency ratios
• Long term solvency ratios
• Solvency ratio
• Liquidity ratio
Q25 | The ratios that shows the capacity of the business unit to meet its short term obligation out of its short term resources is known as --------------
• Solvency ratio
• Leverage ratio
• Liquidity ratio
• Trend Ratio