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This set of Accounting for Managerial Decisions Multiple Choice Questions & Answers (MCQs) focuses on Accounting For Managerial Decisions Set 2
Q1 | Expressed as a percentage of each asset to total
- Common size P/L A/C
- Common size Balance Sheet
- Comparative Income Statement
- Trend analysis
Q2 | Ratios of different items for various periods are calculated and compared
- Common size
- Comparative
- Trend analysis
- Ratio analysis
Q3 | Yard stick which measures relationship between two variables
- Financial statements
- Ratio
- Fund Flow analysis
- Cash flow analysis
Q4 | The ratio which depicts the relationship between two items,one of which is drawn from the BalanceSheet and the other from the revenue account
- Current ratio
- Equity Ratio
- Net Profit ratio
- Debtors Turn over Ratio
Q5 | The ratio of liquid asset to current liabilities
- Quick ratio
- Current ratio
- Absolute liquid ratio
- Combined ratio
Q6 | Equity includes --------------
- Equity share capital
- Equity share capital+Preference share capital+-fictitious asset
- Equity capital+Prefernce share capital+reserves snd surplus-fictious asset
- Equity capital+Preference share capital
Q7 | The ratio which shows the relationship b/w share holder’s fund and total assets
- Debit equity ratio
- Proprietary ratio
- Solvency ratio
- Fixed asset
Q8 | Long term solvency of a firm can be measured by
- Current ratio
- Net profit ratio
- Gross profit ratio
- Debt equity ratio
Q9 | 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
Q10 | The index of efficiency and profitability of the business
- Operating ratio
- Operating profit ratio
- Expense ratio
- Net profit ratio
Q11 | 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
Q12 | Comparison and interpretation of ratio is known as ---------------------
- Fund flow analysis
- Cash flow analysis
- Ratio analysis
- Trend analysis
Q13 | Powerful tool for analyzing financial statement is ----------
- Trend analysis
- Ratio analysis
- Analysis
- Interpretation
Q14 | The relationship between two amount or variables is measured with the help of ------------
- Ratio
- Trend
- Comparative
- Common size
Q15 | The main aim of the ratio analysis is to help the ----------of the firm
- Owners
- Officials
- Departments
- Management
Q16 | Ratios indicate trends in important items and this helps in -----------
- Forecasting
- Reporting
- Analyzing
- Interpreting
Q17 | Ratios help the management in evolving market strategies through -----------
- Inter firm comparison
- Intra firm comparison
- Ratios
- None of the above
Q18 | Ratios may be used as a measure of -------------
- Effiency
- Solvency
- Profitability
- None of the above
Q19 | An example of Balance Sheet ratio is ---------------
- Net profit ratio
- Inventory turn over ratio
- Current ratio
- Fixed asset turn over ratio
Q20 | Income statement ratios are also called -----------
- Operating ratio
- Liquidity ratio
- Activity ratio
- Trend ratio
Q21 | Leverage ratios are also known as -------------- ratios
- Short term solvency ratios
- Long term solvency ratios
- Solvency ratio
- Liquidity ratio
Q22 | The ratios that shows tha capacity of the business unit to meet its short term obligation out of itsshort term resources is known as --------------
- Solvency ratio
- Leverage ratio
- Liquidity ratio
- Trend Ratio
Q23 | The ratio that highlight the end result of business activities are known as ---------------- ratios
- Liquidity
- Leverage
- Activity
- Profitability
Q24 | The efficiency of the management can be measured with the help of ------------------
- Activity ratio
- Leverage ratio
- Liquidity ratio
- Profitability ratio
Q25 | The ratio of current asset to currnt liability is known as --------------
- Liquid ratio
- Current ratio
- Absolute liquid ratio
- Turn over ratio