### Management Accounting Set 11

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This set of Management Accounting Multiple Choice Questions & Answers (MCQs) focuses on Management Accounting Set 11

Q1 | The ratio that highlight the end result of business activities are known as ---------------- ratios

- Liquidity
- Leverage
- Activity
- Profitability

Q2 | The efficiency of the management can be measured with the help of ------------------

- Activity ratio
- Leverage ratio
- Liquidity ratio
- Profitability ratio

Q3 | The ratio of current asset to current liability is known as --------------

- Liquid ratio
- Current ratio
- Absolute liquid ratio
- Turn over ratio

Q4 | The asset, the amount of which can be realized within a period of one year are known as ----------------

- Current liability
- Current asset
- Liquid liability
- Fixed asset

Q5 | The ideal current ratio is -------------

- 2:01
- 1:01
- 1:02
- 1:03

Q6 | The ratio which shows the relationship between borrowed funds and owners capital is ---------------

- Proprietary ratio
- Debt equity ratio
- Capital gearing ratio
- Fixed asset ratio

Q7 | Proprietary ratio measures the relationship between share holder fund and ------------------

- Total asset
- Fixed asset
- Current asset
- Fictious asset

Q8 | The relationship between total outside liabilities and total assets can be indicated through ------------

- Fixed asset ratio
- Solvency ratio
- Fixed asset turn over ratio
- Proprietary ratio

Q9 | Debt service ratio is also known as --------------

- Interest coverage ratio
- Dividend payout ratio
- Solvency ratio
- Debtors turn over ratio

Q10 | Debt equity ratio is an example of ---------------- ratios

- Balance sheet ratio
- Profit & loss account ratio
- Mixed ratio
- Liquidity ratio

Q11 | Income tax payable come under ------------------

- Long term liability
- Long term fund
- Current liability
- Other liabilities

Q12 | Stock and prepaid expanses are not included in ----------------

- Current asset
- Fixed asset
- Current liability
- Quick asset

Q13 | In a sound business, acid test ratio ------------------- is considered satisfactory

- 1:02
- 2:01
- 1:01
- 0.5:1

Q14 | Cost of good sold+operating expanses=-------------------------

- Total cost
- Cost of product
- Cost of sales
- Operating cost

Q15 | Example of activity ratios ------------------------

- Gross profit ratio
- Net profit ratio
- Operating ratio
- Stock turn over ratio

Q16 | Example of leverage ratio

- Debtors velocity
- Stock turnover ratio
- Current ratio
- Solvency ratio

Q17 | Current ratio is an example of --------------------

- Leverage ratio
- Liquidity ratio
- Activity ratio
- Turnover ratio

Q18 | Stock turn over ratio is an example of -------------------

- Liquidity ratio
- Leverage ratio
- Profitability ratios
- Activity ratios

Q19 | Ratio analysis is a study of relationship among various --------------- factors in a business

- Operational
- Official
- Financial
- Others

Q20 | Liquidity ratios measure the --------- solvency of a firm

- Long term
- Short term
- Average
- Others

Q21 | By computing current ratio ---------------- solvency of a concern is assessed

- Short term
- Long term
- Liquidity
- Profitability

Q22 | #NAME?

- Liquidity ratio
- Profitability
- Activity
- Leverage

Q23 | Satisfactory level of debt equity ratio is --------------------

- 1:01
- 3:01
- 2:01
- 1:02

Q24 | Operating ratio establishes the relationship between --------------- and net sales

- Cost of goods sold
- Cost of sales
- Cost of production
- Operating cost

Q25 | For dividend yield ratio -------------- price of the equity shares is taken into consideration

- Market
- Cash
- Cost
- None of the above