Description : The ratio which indicates how quickly debtors are converted into cash is--------- a) Receivable turnover ratio b) Inventory turnover ratio c) Working capital turnover ratio d) Creditors turnover ratio
Last Answer : a) Receivable turnover ratio
Description : Debtors Turnover ratio is also known as (i) Receivables turnover ratio (ii) Debtors velocity (iii) Stock velocity (iv) Payable turnover ratio A. (i) and (ii) B. (i) and (iii) C. (ii) and (iii) D. (iii) and (iv)
Last Answer : A. (i) and (ii)
Description : Example of leverage ratio a) Debtors velocity b) Stock turnover ratio c) Current ratio d) Solvency ratio
Last Answer : d) Solvency ratio
Description : Debtors turnover ratio measures---------- a) Short term solvency b) Operating efficiency c) Long term solvency d) Credit policy
Last Answer : a) Short term solvency
Description : Debtors turnover ratio is used to calculate------ a) efficiency b) solvency c) liquidity d) profitability
Last Answer : a) efficiency
Description : Sundry Debtors – Rs.15,000 Bills Receivable (B/R) – Rs.12,500 Cash at Bank – Rs.17,500 Stock – Rs.15,000 Profit – Rs.20,000 Creditors – Rs.25,000 Bills Payable (B/P) – Rs.15,000 Sales – Rs.1,00,000 What is the Acid Test Ratio ? (A) 1•5 : 1 (B) 1•125 : 1 (C) 16 2/3% (D) 50%
Last Answer : Answer: 1•125 : 1
Description : Cash, receivable, and payable are examples of ____________ items.
Last Answer : Monitory,
Description : Debt service ratio is also known as -------------- a) Interest coverage ratio b) Dividend payout ratio c) Solvency ratio d) Debtors turn over ratio
Last Answer : a) Interest coverage ratio
Description : Which one of the following statements is correct ? When creditors' velocity or creditors' turnover is higher as compared to debtors' velocity, it would (A) improve liquidity (B) reduce liquidity (C) have no effect on liquidity (D) improve financial position
Last Answer : Answer: have no effect on liquidity
Description : The ratio which depicts the relationship between two items,one of which is drawn from the Balance Sheet and the other from the revenue account a) Current ratio b) Equity Ratio c) Net Profit ratio d) Debtors Turn over Ratio
Last Answer : d) Debtors Turn over Ratio
Description : Which one of the following ratios is likely to be affected the most on account of price level changes ? (A) Current Ratio (B) Inventory Turnover Ratio (C) Debtors’ Turnover Ratio (D) Fixed Assets Turnover Ratio
Last Answer : Answer: Debtors’ Turnover Ratio
Description : For the financial year ended as on March 31, 2013 the figures extracted from the balance sheet of Xerox Limited as under: Opening Stock Rs. 29,000; Purchases Rs. 2,42,000; Sales Rs. 3,20,000; Gross Profit 25% of ... Stock Turnover Ratio will be :- (a) 8 times (b) 6 times (c) 9 times (d) 10 times
Last Answer : (a) 8 times
Description : Stock turnover ratio is used to determine -----------------------of an enterprise a) Profitability b) Liquidity& solvency c) Efficiency d) Growth
Last Answer : c) Efficiency
Description : Debt equity ratio is a-------------------------------------- a) Profitability ratio b) Turnover ratio c) Short term solvency ratio d) Long term solvency ratio
Last Answer : d) Long term solvency ratio
Description : Lower stock turnover ratio indicates------------------------------- a) Solvency position b) Monopoly situation c) Over investment in inventory d) None of these
Last Answer : c) Over investment in inventory
Description : Current ratio is an example of -------------------- a) Leverage ratio b) Liquidity ratio c) Activity ratio d) Turnover ratio
Last Answer : b) Liquidity ratio
Description : The ratio that includes whether investment in inventory is efficiently used or not a) Inventory turnover ratio b) Working capital turn over ratio c) Fixed asset turn over ratio d) Activity ratio
Last Answer : a) Inventory turnover ratio
Description : . If credit sales for the year is Rs. 5,40,000 and Debtors at the end of year is Rs. 90,000 the Average Collection Period will be (a) 30 days (b) 61 days (c) 90 days (d) 120 days
Last Answer : (b) 61 days
Description : Current assets include A. Stores & Spare parts B. Stock in trade C. Sundry Debtors D. All of the above
Last Answer : D. All of the above
Description : Current assets are Rs.6,00,000 current liabilities are Rs.3,00,000 the debtors realized Rs.40,000, the impact on net working capital would be------------------------- a) No change in working ... Decrease of working capital by Rs.80,000 c) Increase of working capital by Rs.40,000 d) None of these
Last Answer : a) No change in working capital
Description : Which of the following is non-current asset a) Goodwill b) Debtors c) Stock d) Prepaid rent
Last Answer : a) Goodwill
Description : In the balance sheet, ending merchandise inventory is reported a. in current assets immediately following accounts receivable. b. in current assets immediately following prepaid expenses. c. in current assets immediately following cash. d. under property, plant, and equipment.
Last Answer : a. in current assets immediately following accounts receivable.
Description : In terms of liquidity, merchandise inventory is a. more liquid than cash. b. more liquid than accounts receivable. c. more liquid than prepaid expenses. d. less liquid than store equipment.
Last Answer : c. more liquid than prepaid expenses.
Description : When a seller grants credit for returned goods, the account that is credited is a. Sales. b. Sales Returns and Allowances. c. Merchandise Inventory. d. Accounts Receivable.
Last Answer : d. Accounts Receivable.
Description : When goods are returned that relate to a prior cash sale, a. the Sales Returns and Allowances account should not be used. b. the cash account will be credited. c. Sales Returns and Allowances will be credited. d. Accounts Receivable will be credited.
Last Answer : b. the cash account will be credited.
Description : A credit memorandum is used as documentation for a journal entry that requires a debit to a. Sales and a credit to Cash. b. Sales Returns and Allowances and a credit to Accounts Receivable. c. ... and a credit to a contra-revenue account. d. Cash and a credit to Sales Returns and Allowances.
Last Answer : d. Cash and a credit to Sales Returns and Allowances.
Description : he journal entry to record a credit sale is a. Cash Sales b. Cash Service Revenue c. Accounts Receivable Service Revenue d. Accounts Receivable Sales
Last Answer : d. Accounts Receivable Sales
Description : The collection of a $900 account after the 2 percent discount period will result in a a. debit to Cash for $882. b. debit to Accounts Receivable for $900. c. debit to Cash for $900. d. debit to Sales Discounts for $18.
Last Answer : c. debit to Cash for $900.
Description : The collection of a $600 account within the 2 percent discount period will result in a a. debit to Sales Discounts for $12. b. debit to Accounts Receivable for $588. c. credit to Cash for $588. d. credit to Accounts Receivable for $588.
Last Answer : a. debit to Sales Discounts for $12.
Description : The entry to record the receipt of payment within the discount period on a sale of $750 with terms of 2/10, n/30 will include a credit to a. Sales Discounts for $15. b. Cash for $735. c. Accounts Receivable for $750. d. Sales for $750.
Last Answer : c. Accounts Receivable for $750.
Description : The current assets should be listed on Cerner's balance sheet in the following order: a. cash, accounts receivable, prepaid insurance, equipment. b. cash, prepaid insurance, supplies, ... receivable, prepaid insurance, supplies. d. equipment, supplies, prepaid insurance, accounts receivable, cash
Last Answer : c. cash, accounts receivable, prepaid insurance, supplies.
Description : The operating cycle of a company is the average time that is required to go from cash to a. sales in producing revenues. b. cash in producing revenues. c. inventory in producing revenues. d. accounts receivable in producing revenues.
Last Answer : b. cash in producing revenues.
Description : Speedy Bike Company received a $940 check from a customer for the balance due. The transaction was erroneously recorded as a debit to Cash $490 and a credit to Service Revenue $490. The ... Receivable, $940. d. debit Accounts Receivable, $940; credit Cash, $450 and Service Revenue, $490.
Last Answer : c. debit Cash, $450 and Service Revenue, $490; credit Accounts Receivable, $940.
Description : The assets which is not taken under the net assets method of calculating Purchase Consideration is: (A) Loose Tools (B) Bills Receivable (C) Machinery (D) Share issued expenses
Last Answer : (D) Share issued expenses
Description : Increase in the amount of bills receivable results in-------------- a) decrease in cash b) increase in cash c) no change in cash d) none of these
Last Answer : a) decrease in cash
Description : Calculate the labour turnover rate according to Separation method from the following: No. of workers on the payroll: - At the beginning of the month: 500 - At the end of the month: 600 During the month, 5 workers left ... engaged for an expansion scheme. (a) 4.55% (b) 1.82% (c) 6% (d) 3%
Last Answer : (a) 4.55%
Description : Calculate the labour turnover rate according to replacement method from the following: No. of workers on the payroll: - At the beginning of the month: 500 - At the end of the month: 600 During the month, 5 workers left ... engaged for an expansion scheme. (a) 4.55% (b) 1.82% (c) 6% (d) 3%
Last Answer : (b) 1.82%
Description : Calculate workers recruited and joined from the following: Labour turnover rates are 20%, 10% and 6% respectively under Flux method, Replacement method and Separation method. No. of workers replaced during the quarter is 80. (a) 112 (b) 80
Last Answer : (a) 112
Description : Calculate workers left and discharged from the following: Labour turnover rates are 20%, 10% and 6% respectively under Flux method, Replacement method and Separation method. No. of workers replaced during the quarter is 80. (a) 112 (b) 80 (c) 48 (d) 64
Last Answer : (c) 48
Description : Costs associated with the labour turnover can be categorised into: (a) Preventive Costs only (b) Replacement costs only (c) Both of the above (d) Machine costs
Last Answer : (c) Both of the above
Description : Which of the following is not an avoidable cause of labour turnover: (a) Dissatisfaction with Job (b) Lack of training facilities (c) Low wages and allowances (d) Disability, making a worker unfit for work
Last Answer : (d) Disability, making a worker unfit for work
Description : Labour turnover means: (a) Turnover generated by labour (b) Rate of change in composition of labour force during a specified period (c) Either of the above (d) Both of the above
Last Answer : (b) Rate of change in composition of labour force during a specified period
Description : (i) Sale or purchase of goods or services for a certain value to be receivable or payable in the future.
Last Answer : Give the word term or phrase which can substitute each of the following statement : (i) ... services are withdrawn by the proprietor for self-use.
Description : Which of the following is not one of the primary concerns in the Finance Department? a. Acquiring the capital needed for company activities. b. Establishing a dividend policy that maximizes the ... structure of the firm, its relationship between debt and equity. e. Deciding promo and sales budget
Last Answer : e. Deciding promo and sales budget
Description : Under a perpetual inventory system, acquisition of merchandise is debited to the a. Merchandise Inventory account. b. Cost of Goods Sold account. c. Purchases account. d. Accounts Payable account.
Last Answer : a. Merchandise Inventory account.
Description : he journal entry to record a return of merchandise purchased on account under a perpetual inventory system would include a. Accounts Payable Sales Returns and Allowances b. Purchase Returns and ... Accounts Payable c. Accounts Payable Inventory d. Merchandise Inventory Cost of Goods Sold
Last Answer : d. Merchandise Inventory Cost of Goods Sold
Description : In a perpetual inventory system, a return of defective merchandise by a cash customer is recorded by crediting a. Accounts Payable and Cash. b. Merchandise Inventory and Cost of Goods Sold c. Purchases Returns and Allowances and Merchandise Inventory. d. .Cash and Cost of Goods Sold.
Last Answer : d. .Cash and Cost of Goods Sold.
Description : A buyer would record a payment within the discount period under a perpetual inventory system by crediting a. Accounts Payable. b. Merchandise Inventory. c. Purchase Discounts. d. Sales Discounts.
Last Answer : b. Merchandise Inventory.
Description : The journal entry to record a return of merchandise purchased on account under a perpetual inventory system would credit a. Accounts Payable. b. Purchase Returns and Allowances. c. Sales. d. Merchandise Inventory.
Last Answer : d. Merchandise Inventory.
Description : Current liabilities a. are obligations that the company is to pay within the forthcoming year. b. are listed in the balance sheet in order of their expected maturity. c. are listed in the balance sheet, ... . d. should not include long-term debt that is expected to be paid within the next year.
Last Answer : a. are obligations that the company is to pay within the forthcoming year. b. are listed in the balance sheet in order of their expected maturity.