Description : Debtors turnover ratio is used to calculate------ a) efficiency b) solvency c) liquidity d) profitability
Last Answer : a) efficiency
Description : By computing current ratio ---------------- solvency of a concern is assessed a) Short term b) Long term c) Liquidity d) Profitability
Last Answer : a) Short term
Description : The ratios that shows tha capacity of the business unit to meet its short term obligation out of its short term resources is known as -------------- a) Solvency ratio b) Leverage ratio c) Liquidity ratio d) Trend Ratio
Last Answer : c) Liquidity ratio
Description : Leverage ratios are also known as -------------- ratios a) Short term solvency ratios b) Long term solvency ratios c) Solvency ratio d) Liquidity ratio
Last Answer : b) Long term solvency ratios
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 : For dividend yield ratio -------------- price of the equity shares is taken into consideration a) Market b) Cash c) Cost d) None of the above
Last Answer : a) Market
Description : Coverage of fixed assets by shareholder’s equity is a good tests of---------------- a) solvency b) liquidity c) Activity d) profitability
Last Answer : a) solvency
Description : Liquidity ratios measure the --------- solvency of a firm a) Long term b) Short term c) Average d) Others
Last Answer : b) Short term
Description : Net worth refers to owner’s-------------------------- a) Equity b) Solvency c) Liability d) None of these
Last Answer : a) Equity
Description : Ratio of net profit before interest and tax to sales is------------------------------ a) Solvency ratio b) Capital gearing c) Operating profit ratio d) None of these
Last Answer : c) Operating profit ratio
Description : Long term solvency of a firm can be measured by a) Current ratio b) Net profit ratio c) Gross profit ratio d) Debt equity ratio
Last Answer : d) Debt equity ratio
Description : Capital gearing ratio is ___________. (a) Market test ratio (b) Long-term solvency ratio (c) Liquid ratio (d) urnover ratio
Last Answer : (b) Long-term solvency ratio
Description : Current ratio shows----- a) The change in gross profit b) The working capital position c) The liquidity of assets d) The change in net profit
Last Answer : b) The working capital position
Description : Example of leverage ratio a) Debtors velocity b) Stock turnover ratio c) Current ratio d) Solvency ratio
Last Answer : d) Solvency ratio
Description : Stock turn over ratio is an example of ------------------- a) Liquidity ratio b) Leverage ratio c) Profitability ratios d) Activity ratios
Last Answer : d) Activity ratios
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 : Debt equity ratio is an example of ---------------- ratios a) Balance sheet ratio b) Profit & loss account ratio c) Mixed ratio d) Liquidity ratio
Last Answer : a) Balance sheet 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 : Stock turnover ratio is used to determine -----------------------of an enterprise a) Profitability b) Liquidity& solvency c) Efficiency d) Growth
Last Answer : c) Efficiency
Description : Solvency ratio indicates----------------- a) Credit worthiness b) Activity c) Profitability d) None of these
Last Answer : a) Credit worthiness
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 : Ratio to assess the short term debt paying capacity of a firm is---------- a) Debt equity ratio b) Propriety ratio c) Liquid ratio d) Solvency ratios
Last Answer : c) Liquid ratio
Description : The relationship between total outside liabilities and total assets can be indicated through ------------ a) Fixed asset ratio b) Solvency ratio c) Fixed asset turn over ratio d) Proprietary ratio
Last Answer : b) Solvency ratio
Description : The ratio which shows the relationship b/w share holder’s fund and total assets a) Debit equity ratio b) Proprietary ratio c) Solvency ratio d) Fixed asset
Last Answer : b) Proprietary ratio
Description : The relationship between current assets and current liabilities is important in evaluating a company's a. profitability. b. liquidity. c. market value. d. accounting cycle.
Last Answer : b. liquidity.
Description : he ratio which is used to ascertain the soundness of the long term financial position is------------ a) Debt equity ratio b) Liquidity ratio c) Activity ratio d) Gross profit ratio
Last Answer : a) Debt equity ratio
Description : ---------------- ratio studies the firm’s ability to meet its long term financial position a) Liquidity ratio b) Profitability c) Activity d) Leverage
Last Answer : d) Leverage
Description : The efficiency of the management can be measured with the help of ------------------ a) Activity ratio b) Leverage ratio c) Liquidity ratio d) Profitability ratio
Last Answer : a) Activity ratio
Description : The ratio that highlight the end result of business activities are known as ---------------- ratios a) Liquidity b) Leverage c) Activity d) Profitability
Last Answer : d) Profitability
Description : Income statement ratios are also called ----------- a) Operating ratio b) Liquidity ratio c) Activity ratio d) Trend ratio
Last Answer : a) Operating ratio
Description : The ratio that shows the relationship between fixed asset to share holders fund a) Fixed asset to net worth b) Fixed asset ratio c) Fixed assets turn over ratio d) Net worth ratio
Last Answer : a) Fixed asset to net worth
Description : Rol measures----- a) Profitability in relation to investment b) Profitability in relation to sales c) Operating efficiency d) Long term solvency
Last Answer : a) Profitability in relation to investment
Description : Ratios may be used as a measure of ------------- a) Effiency b) Solvency c) Profitability d) None of the above
Last Answer : a) Effiency
Description : Example of activity ratios ------------------------ a) Gross profit ratio b) Net profit ratio c) Operating ratio d) Stock turn over ratio
Last Answer : d) Stock turn over ratio
Description : An example of Balance Sheet ratio is --------------- a) Net profit ratio b) Inventory turn over ratio c) Current ratio d) Fixed asset turn over ratio
Last Answer : c) Current ratio
Description : If the market price of the shares to be given for Purchase Consideration at the time of absorption, ............ of the share is to be determined (A) Fair Value (B) Face Value (C) Intrinsic Value (D) Yield Value
Last Answer : (C) Intrinsic Value
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 : On a classified balance sheet, current assets are customarily listed a. in alphabetical order. b. with the largest dollar amounts first. c. in the order of liquidity. d. in the order of acquisition.
Last Answer : c. in the order of liquidity.
Description : Preference dividend in arears on the date of winding up is a) Treated as Secured creditor b) Treated as Preferential creditor c) Treated as Over – riding preferential creditor d) Added to Preference Share Capital
Last Answer : d) Added to Preference Share Capital
Description : The summarized balance sheet of Autolight Limited shows the balances of previous and current year of retained earnings Rs. 25,000 and Rs. 35,000. If dividend paid during the current year amounted to Rs. 5,000 then profit earned during ... (a) Rs. 5,000 (b) Rs. 55,000 (c) Rs. 15,000 (d) Rs. 65,000
Last Answer : (c) Rs. 15,000
Description : Cash flow from financing activities include payment of interest on borrowing and___ to share holders a) Dividend b) Interest c) Bonus d) Bonus shares
Last Answer : a) Dividend
Description : Proposed dividend is classified as----------- a) Investing activity b) Financing activity c) Operating activity d) Cash equivalent
Last Answer : c) Operating activity
Description : Dividend paid under AS- 3 is---------- a) Cash flow from financing activity b) Cash flow from operating activity c) Cash flow from investing activity d) None of these
Last Answer : c) Cash flow from investing activity
Description : Dividend paid are classified under-------------------activities a) Financing b) Investing c) Operating d) Other
Last Answer : a) Financing
Description : Proposed dividend is a-------- a) Current liability b) Current asset c) Noncurrent liability d) Expense
Last Answer : a) Current liability
Description : Net Assets of D.Co. for Purchase Consideration worth Rs. 4,00,000. At the time of absorption, the company has paid 32,000 equity shares each of Rs.10 each at 10% premium, then remaining cash will be - (A) Rs. 48,000 (B) Rs. 84,000 (C) Rs. 80,000 (D) Rs. 90,000
Last Answer : (A) Rs. 48,000
Description : Kirti Co’s Balance Sheet shows Fixed Asset Rs. 3,60,000. At the time of absorption calculation of Net Assets is 10% less than the market value, then market value of such fixed assets is ............ (A) Rs. 3,24,000 (B) Rs. 4,00,000 (C) Rs. 4,20,000 (D) None of these
Last Answer : (B) Rs. 4,00,000
Description : The most critical consideration in the design of a rolled steel column carrying axial loads is the (a) Percentage elongation at yield and the net cross-sectional area (b) Critical bending ... at ultimate load (d) Compressive strength based on slenderness ratio and gross cross-sectional area.
Last Answer : (d) Compressive strength based on slenderness ratio and gross cross-sectional area.
Description : The operating profit and net sale of a firm are rs.2,00,000 and rs.10,00,000 respectively then operating ratio will be a) 20% b) 5% c) 50% d) 20%
Last Answer : a) 20%