### Management Accounting Set 12

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This set of Management Accounting Multiple Choice Questions & Answers (MCQs) focuses on Management Accounting Set 12

Q1 | Coverage of fixed assets by shareholderâ€™s equity is a good tests of----------------

- solvency
- liquidity
- Activity
- profitability

Q2 | Net worth refers to ownerâ€™s--------------------------

- Equity
- Solvency
- Liability
- None of these

Q3 | Ratio to assess the short term debt paying capacity of a firm is----------

- Debt equity ratio
- Propriety ratio
- Liquid ratio
- Solvency ratios

Q4 | The ratio which is used to ascertain the soundness of the long term financial position is------------

- Debt equity ratio
- Liquidity ratio
- Activity ratio
- Gross profit ratio

Q5 | If the current assets and working capital of a company are rs.80,000 and rs.50000 then current liability will be-------------

- Rs.1,00,000
- Rs.1,30,000
- Rs.70000
- Rs.30000

Q6 | The ratio which is a good indicator to maintain the correct selling price and efficiency of trading activity is------

- Net profit ratio
- Gross profit ratio
- Current ratio
- Liquid ratios

Q7 | Return on investment is a----------------

- Profit and loss account ratio
- Balance sheet ratio
- Combined ratio
- Position statement ratio

Q8 | Debtors turnover ratio also known as----------

- Payable turnover
- Receivable turnover ratio
- Creators turnover ratio
- Debtors velocity

Q9 | The operating profit and net sale of a firm are rs.2,00,000 and rs.10,00,000 respectively then operating ratio will be

- 20%
- 5%
- 50%

Q10 | The ratio which indicates how quickly debtors are converted into cash is---------

- Receivable turnover ratio
- Inventory turnover ratio
- Working capital turnover ratio
- Creditors turnover ratio

Q11 | Net capital employed is equal to ---------------

- Total assets minus liabilities
- Fixed asset plus net working capital
- Total asset minus long-term liabilities
- Total assets

Q12 | Ratio of net profit before interest and tax to sales is------------------------------

- Solvency ratio
- Capital gearing
- Operating profit ratio
- None of these

Q13 | Lower stock turnover ratio indicates-------------------------------

- Solvency position
- Monopoly situation
- Over investment in inventory
- None of these

Q14 | Collection of book debts-----

- Has no effect on current ratio
- Has decreased in current ratio
- Has increased in current ratio
- None of these

Q15 | Debt equity ratio is a--------------------------------------

- Profitability ratio
- Turnover ratio
- Short term solvency ratio
- Long term solvency ratio

Q16 | Market price per share divided by earnings per share is-------

- Price earning ratio
- Return on equity
- Market test ratio
- Book value per share

Q17 | Solvency ratio indicates-----------------

- Credit worthiness
- Activity
- Profitability
- None of these

Q18 | Current ratio shows-----

- The change in gross profit
- The working capital position
- The liquidity of assets
- The change in net profit

Q19 | Current ratio is 4:1, the amount of current liabilities is Rs.12000 the amount of working capital is-----

- Rs.48,000
- Rs.36000
- Rs.30000
- Rs.60000

Q20 | Stock turnover ratio is used to determine -----------------------of an enterprise

- Profitability
- Liquidity& solvency
- Efficiency
- Growth

Q21 | Working capital is expressed as------

- Current asset-fixed asset
- Fixed assets-current liabilities
- Current assets-current liabilities
- None of these

Q22 | Dividend yield is an example for------ratio

- Solvency
- Liquidity
- Market strength
- Net worth

Q23 | Debtors turnover ratio is used to calculate------

- efficiency
- solvency
- liquidity
- profitability

Q24 | Rol measures-----

- Profitability in relation to investment
- Profitability in relation to sales
- Operating efficiency
- Long term solvency

Q25 | Debtors turnover ratio measures----------

- Short term solvency
- Operating efficiency
- Long term solvency
- Credit policy