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This set of Accounting for Managerial Decisions Multiple Choice Questions & Answers (MCQs) focuses on Accounting For Managerial Decisions Set 4
Q1 | 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
Q2 | If the current assets and working capital of a company are rs.80,000 and rs.50000 then currentliability will be-------------
- Rs.1,00,000
- Rs.1,30,000
- Rs.70000
- Rs.30000
Q3 | The ratio which is a good indicator to maintain the correct selling price and efficiency of tradingactivity is------
- Net profit ratio
- Gross profit ratio
- Current ratio
- Liquid ratios
Q4 | Return on investment is a----------------
- Profit and loss account ratio
- Balance sheet ratio
- Combined ratio
- Position statement ratio
Q5 | Debtors turnover ratio also known as----------
- Payable turnover
- Receivable turnover ratio
- Creators turnover ratio
- Debtors velocity
Q6 | The operating profit and net sale of a firm are rs.2,00,000 and rs.10,00,000 respectively thenoperating ratio will be
- 20%
- 5%
- 50%
Q7 | 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
Q8 | Net capital employed is equal to ---------------
- Total assets minus liabilities
- Fixed asset plus net working capital
- Total asset minus long-term liabilities
- Total assets
Q9 | Ratio of net profit before interest and tax to sales is------------------------------
- Solvency ratio
- Capital gearing
- Operating profit ratio
- None of these
Q10 | Lower stock turnover ratio indicates-------------------------------
- Solvency position
- Monopoly situation
- Over investment in inventory
- None of these
Q11 | Collection of book debts-----
- Has no effect on current ratio
- Has decreased in current ratio
- Has increased in current ratio
- None of these
Q12 | Debt equity ratio is a--------------------------------------
- Profitability ratio
- Turnover ratio
- Short term solvency ratio
- Long term solvency ratio
Q13 | Market price per share divided by earnings per share is-------
- Price earning ratio
- Return on equity
- Market test ratio
- Book value per share
Q14 | Solvency ratio indicates-----------------
- Credit worthiness
- Activity
- Profitability
- None of these
Q15 | Current ratio shows-----
- The change in gross profit
- The working capital position
- The liquidity of assets
- The change in net profit
Q16 | 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
Q17 | Stock turnover ratio is used to determine -----------------------of an enterprise
- Profitability
- Liquidity& solvency
- Efficiency
- Growth
Q18 | Working capital is expressed as------
- Current asset-fixed asset
- Fixed assets-current liabilities
- Current assets-current liabilities
- None of these
Q19 | Dividend yield is an example for------ratio
- Solvency
- Liquidity
- Market strength
- Net worth
Q20 | Debtors turnover ratio is used to calculate------
- efficiency
- solvency
- liquidity
- profitability
Q21 | Rol measures-----
- Profitability in relation to investment
- Profitability in relation to sales
- Operating efficiency
- Long term solvency
Q22 | Debtors turnover ratio measures----------
- Short term solvency
- Operating efficiency
- Long term solvency
- Credit policy
Q23 | Fund flow refers to change in-----
- Working capital
- Fixed capital
- Current capital
- Increase in working capital
Q24 | Depreciation is sometimes treated as -------of funds
- Outflow
- Use
- Source
- No change
Q25 | Salary outstanding is----- of funds
- Source
- Inflow
- Application
- No change