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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