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MCQs

Total Questions : 842 | Page 3 of 85 pages
Question 21. Liquid or Quick assets =
  1.    Current assets - (Stock + Work in progress)
  2.    Current assets + Stock + Work in progress
  3.    (Current assets + Stock) + Work in progress
  4.    (Current assets + Work in progress) - Stock
 Discuss Question
Answer: Option A. -> Current assets - (Stock + Work in progress)
Question 22. Lower the Debt Equity ratio
  1.    Lower the protection to creditors
  2.    Higher the protection to creditors
  3.    It does not affect the creditors
  4.    None of the above
 Discuss Question
Answer: Option B. -> Higher the protection to creditors
Question 23. A higher inventory ratio indicates
  1.    Better inventory management
  2.    Quicker turnover
  3.    Both A and B
  4.    None of the above
 Discuss Question
Answer: Option C. -> Both A and B
Question 24. A low Return on Investment Ratio (ROI) indicates
  1.    Improper utilization of resources
  2.    Over investment in assets
  3.    Both A and B
  4.    None of the above
 Discuss Question
Answer: Option C. -> Both A and B
Question 25. Return on Investment Ratio (ROI) =
  1.    (Gross profit / Net sales) x 100
  2.    (Gross profit x Sales / Fixed assets) x 100
  3.    (Net profit / Sales) x 100
  4.    (Net profit / Total assets) x 100
 Discuss Question
Answer: Option D. -> (Net profit / Total assets) x 100
Question 26. Sales expenditure budget is prepared by estimating the expense(s) of
  1.    Advertisement
  2.    Market analysis
  3.    Salesman's salary
  4.    All of the above
 Discuss Question
Answer: Option D. -> All of the above
Question 27. Budgeting is difficult to apply in the following cases
  1.    Products subjected to rapid changes
  2.    Job order manufacturing
  3.    Uncertain market condition
  4.    All of the above
 Discuss Question
Answer: Option D. -> All of the above
Question 28. A Master Budget consists of
  1.    Sales budget
  2.    Production budget
  3.    Material budget
  4.    All of the above
 Discuss Question
Answer: Option D. -> All of the above
Question 29. The accounting process involves recording
  1.    Quantifiable economic event
  2.    Non Quantifiable economic event
  3.    All of them
  4.    None of them
 Discuss Question
Answer: Option A. -> Quantifiable economic event
Question 30. In accounting, an economic event is referred to as
  1.    Cash
  2.    Bank statement
  3.    Transaction
  4.    Exchange of money
 Discuss Question
Answer: Option C. -> Transaction

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