On This Page
This set of Accounting for Managerial Decisions Multiple Choice Questions & Answers (MCQs) focuses on Accounting For Managerial Decisions Set 3
Q1 | 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
Q2 | The ideal current ratio is -------------
- 2:1
- 1:1
- 1:2
- 1:3
Q3 | The ratio which shows the relationship between borrowed funds and owners capital is ---------------
- Proprietary ratio
- Debt equity ratio
- Capital gearing ratio
- Fixed asset ratio
Q4 | Proprietary ratio measures the relationship between share holder fund and ------------------
- Total asset
- Fixed asset
- Current asset
- Fictious asset
Q5 | 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
Q6 | Debt service ratio is also known as --------------
- Interest coverage ratio
- Dividend payout ratio
- Solvency ratio
- Debtors turn over ratio
Q7 | Debt equity ratio is an example of ---------------- ratios
- Balance sheet ratio
- Profit & loss account ratio
- Mixed ratio
- Liquidity ratio
Q8 | Income tax payable come under ------------------
- Long term liability
- Long term fund
- Current liability
- Other liabilities
Q9 | Stock and prepaid expanses are not included in ----------------
- Current asset
- Fixed asset
- Current liability
- Quick asset
Q10 | In a sound business, acid test ratio ------------------- is considered satisfactory
- 1:2
- 2:1
- 1:1
- 0.5:1
Q11 | Cost of good sold+operating expanses=-------------------------
- Total cost
- Cost of product
- Cost of sales
- Operating cost
Q12 | Example of activity ratios ------------------------
- Gross profit ratio
- Net profit ratio
- Operating ratio
- Stock turn over ratio
Q13 | Example of leverage ratio
- Debtors velocity
- Stock turnover ratio
- Current ratio
- Solvency ratio
Q14 | Current ratio is an example of --------------------
- Leverage ratio
- Liquidity ratio
- Activity ratio
- Turnover ratio
Q15 | Stock turn over ratio is an example of -------------------
- Liquidity ratio
- Leverage ratio
- Profitability ratios
- Activity ratios
Q16 | Ratio analysis is a study of relationship among various --------------- factors in a business
- Operational
- Official
- Financial
- Others
Q17 | Liquidity ratios measure the --------- solvency of a firm
- Long term
- Short term
- Average
- Others
Q18 | By computing current ratio ---------------- solvency of a concern is assessed
- Short term
- Long term
- Liquidity
- Profitability
Q19 | ---------------- ratio studies the firm’s ability to meet its long term financial position
- Liquidity ratio
- Profitability
- Activity
- Leverage
Q20 | Satisfactory level of debt equity ratio is --------------------
- 1:1
- 3:1
- 2:1
- 1:2
Q21 | Operating ratio establishes the relationship between --------------- and net sales
- Cost of goods sold
- Cost of sales
- Cost of production
- Operating cost
Q22 | For dividend yield ratio -------------- price of the equity shares is taken into consideration
- Market
- Cash
- Cost
- None of the above
Q23 | Coverage of fixed assets by shareholder’s equity is a good tests of----------------
- solvency
- liquidity
- Activity
- profitability
Q24 | Net worth refers to owner’s--------------------------
- Equity
- Solvency
- Liability
- None of these
Q25 | Ratio to assess the short term debt paying capacity of a firm is----------
- Debt equity ratio
- Propriety ratio
- Liquid ratio
- Solvency ratios