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This set of Management Accounting Multiple Choice Questions & Answers (MCQs) focuses on Analysis & interpretation of financial statement Set 2

Q1 | Operating ratio is calculated by
Q2 | The financial decision making that relates to current assets or short term asset is known as__________________.
Q3 | In what order should current assets be present on a statement of financial position?
Q4 | If value of opening inventories increases, what happens to the value of gross profit?
Q5 | What does the statement of comprehensive income show?
Q6 | Depreciation is applied to non-current assets in the statement of financial position in order to
Q7 | What would be the most likely impact on trade receivables days if invoice discounting wasoffered to and accepted by a large customer of a business?
Q8 | ___________in accounting, is when the costs to acquire an asset are expensed over the life ofthat asset rather than in the period it was incurred?
Q9 | Capitalization is the sum of a corporation’s stock, long term debts &________?
Q10 | __________ is a situation in which actual profits of a company are not sufficient enough topay interest on debentures, on loans and pay dividends on shares over a period of time?
Q11 | Asset structure = _________+__________.
Q12 | In finance, "working capital" means the same thing as __________.
Q13 | In deciding the appropriate level of current assets for the firm, management is confrontedwith_____________.
Q14 | Permanent working capital ___________.
Q15 | Net working capital refers to ___________.
Q16 | To financial analysts, "gross working capital" means the same thing as ________.
Q17 | An example of fixed asset is________.
Q18 | Which one of the following is not the determinant of the working capital?
Q19 | Permanent working capital ___
Q20 | Which one of the following is not a method to find working capital requirement?
Q21 | The Capital used for meeting routine and repetitive expenses of day to day businessoperations is called____.
Q22 | Gross working capital represents __________.
Q23 | Net working capital is the excess of current assets over ________.
Q24 | A positive (net) working capital will arise when current assets exceed _________.
Q25 | The net working capital, being the difference between current assets and current liabilities isa _______.