Profit for the objective of calculating a ratio may be taken as A. Profit before tax but after interest B. Profit before interest and tax C. Profit after interest and tax D. All of the above

Profit for the objective of calculating a ratio may be taken as A. Profit before tax but after interest
B. Profit before interest and tax
C. Profit after interest and tax
D. All of the above
by

1 Answer

Answer :

D. All of the above
by

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The return on investment (ROI) may be calculated as A. Net profit before interest, tax and dividend / Capital employed B. Net profit after interest, tax and dividend / Shareholder's fund C. ( Net profit - preference dividend )/ No. of equity shares D. Return on Investment / Net profit ratio

Description : The return on investment (ROI) may be calculated as A. Net profit before interest, tax and dividend / Capital employed B. Net profit after interest, tax and dividend / Shareholder's fund C. ( Net profit - preference dividend )/ No. of equity shares D. Return on Investment / Net profit ratio

Last Answer : A. Net profit before interest, tax and dividend / Capital employed

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

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

From the information given below, calculate Debt service coverage Ratio– Net profit after interest and Tax Rs. 40,000, Depreciation Rs. 5,000, Rate of Income Tax 50%, 10% Mortgage Debentures Rs. 60,000. Fixed Interest Charges Rs. 6,000, Debenture Redemption Fund Appropriation of Outstanding Debentures 10%. (A) 4•06 times (B) 5•06 times (C) 6•06 times (D) 7•06 times

Description : From the information given below, calculate Debt service coverage Ratio- Net profit after interest and Tax Rs. 40,000, Depreciation Rs. 5,000, Rate of Income Tax 50%, 10% Mortgage Debentures Rs. 60,000. Fixed Interest Charges Rs. 6 ... . (A) 4 06 times (B) 5 06 times (C) 6 06 times (D) 7 06 times

Last Answer : Answer: 4•06 times

Sales for desired profit is measured as A. (Fixed cost + profit)/ (P/V Ratio) B. (Fixed cost + profit) * (P/V Ratio) C. (Fixed cost - profit)/ (P/V Ratio) D. None of the above

Description : Sales for desired profit is measured as A. (Fixed cost + profit)/ (P/V Ratio) B. (Fixed cost + profit) * (P/V Ratio) C. (Fixed cost - profit)/ (P/V Ratio) D. None of the above

Last Answer : A. (Fixed cost + profit)/ (P/V Ratio)

Which of the following statements are true? A. P/V Ratio can never be used to measure break-even point B. Higher the P/V ratio less will be the profit and vice versa C. Concept of P/V ratio is also used to determine profit at a given volume of sales D. All of the above

Description : Which of the following statements are true? A. P/V Ratio can never be used to measure break-even point B. Higher the P/V ratio less will be the profit and vice versa C. Concept of P/V ratio is also used to determine profit at a given volume of sales D. All of the above

Last Answer : C. Concept of P/V ratio is also used to determine profit at a given volume of sales

Profit-Volume ratio is also known as A. Contribution ratio B. Contribution/Sales ratio C. Marginal Income percentage D. All of the above

Description : Profit-Volume ratio is also known as A. Contribution ratio B. Contribution/Sales ratio C. Marginal Income percentage D. All of the above

Last Answer : D. All of the above

Under absorption costing, managerial decisions are based on A. Profit B. Contribution C. Profit volume ratio D. None of the above

Description : Under absorption costing, managerial decisions are based on A. Profit B. Contribution C. Profit volume ratio D. None of the above

Last Answer : A. Profit

Gross profit ratio is calculated by A. (Gross Profit/Gross sales)*100 B. (Gross Profit/Net sales)*100 C. (Net Profit/Gross sales)*100 D. None of the above

Description : Gross profit ratio is calculated by A. (Gross Profit/Gross sales)*100 B. (Gross Profit/Net sales)*100 C. (Net Profit/Gross sales)*100 D. None of the above

Last Answer : B. (Gross Profit/Net sales)*100

Gross Profit ratio is also termed as A. Gross Profit Margin B. Gross Margin to net sales C. Both a and b D. All of the above

Description : Gross Profit ratio is also termed as A. Gross Profit Margin B. Gross Margin to net sales C. Both a and b D. All of the above

Last Answer : C. Both a and b

Operating profit of a chemical plant is equal to (A) Profit before interest and tax i.e., net profit + interest + tax (B) Profit after tax plus depreciation (C) Net profit + tax (D) Profit after tax

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Last Answer : (A) Profit before interest and tax i.e., net profit + interest + tax (B) Profit after tax plus depreciation

Which of the following is not included under World Bank objective? A. Reconstruction and Economic Development B. Encouragement to Capital Investment C. Balance Development D. Delayed Implementation

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Last Answer : D. Delayed Implementation

A primary objective of dual exchange rates is to allow a country the ability to insulate its balance of payments from net: A. Current account transactions B. Unilateral transfers C. Merchandise trade transactions D. Capital account transactions

Description : A primary objective of dual exchange rates is to allow a country the ability to insulate its balance of payments from net: A. Current account transactions B. Unilateral transfers C. Merchandise trade transactions D. Capital account transactions

Last Answer : D. Capital account transactions

A primary objective of dual exchange rates is to allow a country the ability to insulate its balance of payments from net: A. Current account transactions B. Unilateral transfers C. Merchandise trade transactions D. Capital account transactions

Description : A primary objective of dual exchange rates is to allow a country the ability to insulate its balance of payments from net: A. Current account transactions B. Unilateral transfers C. Merchandise trade transactions D. Capital account transactions

Last Answer : D. Capital account transaction

Management accounting is (i) Subjective (ii) Objective A. Only (i) B. Only (ii) C. Both (i) and (ii) D. None of the above

Description : Management accounting is (i) Subjective (ii) Objective A. Only (i) B. Only (ii) C. Both (i) and (ii) D. None of the above

Last Answer : A. Only (i)

Which of the following is NOT considered to be an objective associated with the use of sales promotions? A. Change buyer attitudes B. Increase volume of individual purchases C. Prompt buyers into trial purchase D. Product improvement

Description : Which of the following is NOT considered to be an objective associated with the use of sales promotions? A. Change buyer attitudes B. Increase volume of individual purchases C. Prompt buyers into trial purchase D. Product improvement

Last Answer : A. Change buyer attitudes

Method of managing advertising budget at level company can have money for is classified as A. percentage of sales method B. affordable method C. competitive parity method D. objective and task method

Description : Method of managing advertising budget at level company can have money for is classified as A. percentage of sales method B. affordable method C. competitive parity method D. objective and task method

Last Answer : B. affordable method

Method of managing promotional budget to match outlays of competitors is called A. percentage of sales method B. affordable method C. competitive parity method D. objective and task method

Description : Method of managing promotional budget to match outlays of competitors is called A. percentage of sales method B. affordable method C. competitive parity method D. objective and task method

Last Answer : C. competitive parity method

Method of managing advertising budget at a certain percentage of sales price per unit or forecasted sales of products is classified as A. percentage of sales method B. affordable method C. competitive parity method D. objective and task method

Description : Method of managing advertising budget at a certain percentage of sales price per unit or forecasted sales of products is classified as A. percentage of sales method B. affordable method C. competitive parity method D. objective and task method

Last Answer : A. percentage of sales method

Method of managing promotion budget by defining objectives, determining tasks to achieve objectives and estimating costs for activities is called A. percentage of sales method B. affordable method C. competitive parity method D. objective and task method

Description : Method of managing promotion budget by defining objectives, determining tasks to achieve objectives and estimating costs for activities is called A. percentage of sales method B. affordable method C. competitive parity method D. objective and task method

Last Answer : D. objective and task method

In market-penetration pricing, the company’s objective is to ________, believing that higher sales volume will lead to lower unit costs and higher long-run profits. A. Block competitive launches B. Maximize their market share C. Minimize their market share D. Maximize volume E. None of the above

Description : In market-penetration pricing, the company's objective is to ________, believing that higher sales volume will lead to lower unit costs and higher long-run profits. A. Block competitive launches B. ... their market share C. Minimize their market share D. Maximize volume E. None of the above

Last Answer : B. Maximize their market share

When contribution is positive but equal to fixed cost, A. There is loss equal to fixed costs B. There is loss more than fixed costs C. There will be loss less than fixed costs D. There will be neither profit not loss

Description : When contribution is positive but equal to fixed cost, A. There is loss equal to fixed costs B. There is loss more than fixed costs C. There will be loss less than fixed costs D. There will be neither profit not loss

Last Answer : D. There will be neither profit not loss

Which of the following is not the main objective of accounting? A] Systematic recording of transactions B] Ascertaining profit or loss C] Ascertainment of financial position D] Solving tax disputes with tax authorities

Description : Which of the following is not the main objective of accounting? A] Systematic recording of transactions B] Ascertaining profit or loss C] Ascertainment of financial position D] Solving tax disputes with tax authorities

Last Answer : D] Solving tax disputes with tax authorities

Which of the following statements are true? A. Contribution doesn’t include fixed cost whereas profit includes fixed cost. B. Contribution is not based on the concept of marginal cost. C. Contribution above breakeven point becomes profit. D. All of the above

Description : Which of the following statements are true? A. Contribution doesn’t include fixed cost whereas profit includes fixed cost. B. Contribution is not based on the concept of marginal cost. C. Contribution above breakeven point becomes profit. D. All of the above

Last Answer : C. Contribution above breakeven point becomes profit.

Using equation method, Break-even point is calculated as A. Sales = Variable expenses + Fixed expenses + Profit B. Sales = Variable expenses + Fixed expenses - Profit C. Sales = Variable expenses - Fixed expenses + Profit D. None of the above

Description : Using equation method, Break-even point is calculated as A. Sales = Variable expenses + Fixed expenses + Profit B. Sales = Variable expenses + Fixed expenses - Profit C. Sales = Variable expenses - Fixed expenses + Profit D. None of the above

Last Answer : A. Sales = Variable expenses + Fixed expenses + Profit

Which of the following are characteristics of B.E.P? A. There is no loss and no profit to the firm. B. Total revenue is equal to total cost. C. Contribution is equal to fixed cost. D. All of the above.

Description : Which of the following are characteristics of B.E.P? A. There is no loss and no profit to the firm. B. Total revenue is equal to total cost. C. Contribution is equal to fixed cost. D. All of the above.

Last Answer : D. All of the above.

In context of net operating profit, which of the following statements are true? A. If all costs are variable, the amount of profit obtained in marginal costing and absorption costing will be same. B. If the volume of sales and output is equal in a period, profit will be same in absorption costing and marginal costing. C. Both a and b D. None of the above

Description : In context of net operating profit, which of the following statements are true? A. If all costs are variable, the amount of profit obtained in marginal costing and absorption costing will be same. B. If ... same in absorption costing and marginal costing. C. Both a and b D. None of the above

Last Answer : C. Both a and b

Which of the following statements related to Contribution Analysis are ture? A. If contribution is zero, there is loss equal to fixed costs B. If contribution is negative, loss is less than fixed costs C. If contribution is positive and more than fixed cost there will be profit. D. All of the above

Description : Which of the following statements related to Contribution Analysis are ture? A. If contribution is zero, there is loss equal to fixed costs B. If contribution is negative, loss is less than fixed costs ... contribution is positive and more than fixed cost there will be profit. D. All of the above

Last Answer : A. If contribution is zero, there is loss equal to fixed costs

While computation of profit in marginal costing A. Total marginal cost is deducted from total sales revenues B. Total marginal cost is added to total sales revenues C. Fixed cost is added to contribution D. None of the above

Description : While computation of profit in marginal costing A. Total marginal cost is deducted from total sales revenues B. Total marginal cost is added to total sales revenues C. Fixed cost is added to contribution D. None of the above

Last Answer : A. Total marginal cost is deducted from total sales revenues

Sales margin variance due to sales quantities is measured as A. Standard profit - Revised standard profit B. Revised standard profit - Budgeted profit C. Standard profit + Revised standard profit D. Revised standard profit + Budgeted profit

Description : Sales margin variance due to sales quantities is measured as A. Standard profit - Revised standard profit B. Revised standard profit - Budgeted profit C. Standard profit + Revised standard profit D. Revised standard profit + Budgeted profit

Last Answer : B. Revised standard profit - Budgeted profit

Which of the following is responsibility center? A. Expense center B. Profit center C. Investment center D. All of the above

Description : Which of the following is responsibility center? A. Expense center B. Profit center C. Investment center D. All of the above

Last Answer : D. All of the above

Contribution margin center is also known as A. Expense center B. Profit center C. Investment center D. All of the above

Description : Contribution margin center is also known as A. Expense center B. Profit center C. Investment center D. All of the above

Last Answer : B. Profit center

In profit center revenue represents a monetary measure of output emanating from a profit center in a given period irrespective whether A. The revenue is realized or not B. The output is sold or not C. Both a and b D. None of the above

Description : In profit center revenue represents a monetary measure of output emanating from a profit center in a given period irrespective whether A. The revenue is realized or not B. The output is sold or not C. Both a and b D. None of the above

Last Answer : C. Both a and b

Cash Flow Statement is prepared from A. Profit and loss account B. Balance Sheet C. Additional Information D. All of the above

Description : Cash Flow Statement is prepared from A. Profit and loss account B. Balance Sheet C. Additional Information D. All of the above

Last Answer : D. All of the above

Profit and Loss Account debit side includes A. Salary B. Discount allowed C. Postage & telegram D. All of the above

Description : Profit and Loss Account debit side includes A. Salary B. Discount allowed C. Postage & telegram D. All of the above

Last Answer : D. All of the above

Under the _____________, both internal and external corporate governance mechanisms are intended to induce managerial actions that maximize profit and A. shareholder value. B. Shareholder theory. C. Agency theory. D. Stakeholder theory. E. Corporate governance theory

Description : Under the _____________, both internal and external corporate governance mechanisms are intended to induce managerial actions that maximize profit and A. shareholder value. B. Shareholder theory. C. Agency theory. D. Stakeholder theory. E. Corporate governance theory

Last Answer : A. shareholder value.

Although the promotion mix is the company’s primary communication activity, the __________________ must be coordinated for greatest communication impact. A. Organizational culture B. Entire marketing mix C. Demand mix D. Profit variables in a company

Description : Although the promotion mix is the company’s primary communication activity, the __________________ must be coordinated for greatest communication impact. A. Organizational culture B. Entire marketing mix C. Demand mix D. Profit variables in a company

Last Answer : B. Entire marketing mix

Intermediaries sponsor their own brands because ________. A. private-label brands sell at higher volumes B. private-label brands are recognizable to the consumer as being widely available from many different retailers C. private-label brands are always of better quality than national brands D. private-label brands can be sold at lower prices yet generate a higher profit margin because of their lower cost structure

Description : Intermediaries sponsor their own brands because ________. A. private-label brands sell at higher volumes B. private-label brands are recognizable to the consumer as being widely available from many ... sold at lower prices yet generate a higher profit margin because of their lower cost structure

Last Answer : D. private-label brands can be sold at lower prices yet generate a higher profit margin because of their lower cost structure

A distribution channel moves goods and services from producers to consumers. It overcomes the major time, place, and ______________ gaps that separate goods and services from those who would use them. A. possession B. profit C. image D. psychological

Description : A distribution channel moves goods and services from producers to consumers. It overcomes the major time, place, and ______________ gaps that separate goods and services from those who would use them. A. possession B. profit C. image D. psychological

Last Answer : A. possession

Marketers operate in which marketplaces: A. Consumer and business B. Global and non-profit C. a & b both D. None of the above

Description : Marketers operate in which marketplaces: A. Consumer and business B. Global and non-profit C. a & b both D. None of the above

Last Answer : C. a & b both

In marketing, ______ is the focal point. A. Profit B. Sales C. Customer D. All of the above

Description : In marketing, ______ is the focal point. A. Profit B. Sales C. Customer D. All of the above

Last Answer : C. Customer

Total managerial remuneration cannot exceed ____% of net profit A. 11 B. 12 C. 13 D. 14

Description : Total managerial remuneration cannot exceed ____% of net profit A. 11 B. 12 C. 13 D. 14

Last Answer : A. 11

The corrective actions after the analysis of variances has to be taken by A. Cost accountant B. Management C. Both a and b D. None of the above

Description : The corrective actions after the analysis of variances has to be taken by A. Cost accountant B. Management C. Both a and b D. None of the above

Last Answer : B. Management

During the recessionary phase of a business cycle: A. The natural rate of unemployment will increase dramatically B. Potential national income will exceed actual national income C. Actual national income will exceed potential national income D. The real rate of interest will exceed the nominal rate of interest.

Description : During the recessionary phase of a business cycle: A. The natural rate of unemployment will increase dramatically B. Potential national income will exceed actual national income C. Actual national income ... national income D. The real rate of interest will exceed the nominal rate of interest.

Last Answer : B. Potential national income will exceed actual national income

During the recessionary phase of a business cycle: A. The natural rate of unemployment will increase dramatically B. Potential national income will exceed actual national income C. Actual national income will exceed potential national income D. The real rate of interest will exceed the nominal rate of interest.

Description : During the recessionary phase of a business cycle: A. The natural rate of unemployment will increase dramatically B. Potential national income will exceed actual national income C. Actual national income ... national income D. The real rate of interest will exceed the nominal rate of interest.

Last Answer : A. The natural rate of unemployment will increase dramatically

In the case of financial enterprises, the cash flow resulting from interest and dividend received and interest paid should be classified as cash flow from A. Operating activities B. Financing activities C. Investing activities D. None of the above

Description : In the case of financial enterprises, the cash flow resulting from interest and dividend received and interest paid should be classified as cash flow from A. Operating activities B. Financing activities C. Investing activities D. None of the above

Last Answer : A. Operating activities

When a fixed asset is bought as hire purchase, interest element is classified under ______ and loan element is classified under________. A. Operating activities, financing activities B. Financing activities, investing activities C. Investing activities, operating activities D. None of the above

Description : When a fixed asset is bought as hire purchase, interest element is classified under ______ and loan element is classified under________. A. Operating activities, financing activities B. ... activities, investing activities C. Investing activities, operating activities D. None of the above

Last Answer : B. Financing activities, investing activities

Which of the following stages is not included in AIDAS theory? A. Gaining interest B. Evaluation C. Securing attention D. Inducing action E. Building satisfaction.

Description : Which of the following stages is not included in AIDAS theory? A. Gaining interest B. Evaluation C. Securing attention D. Inducing action E. Building satisfaction.

Last Answer : B. Evaluation

Contracts made after incorporation but before the grant of Certificate of commencement of Business _________ A. Provisional contracts B. Pre incorporation contracts C. Preliminary contracts D. Both (b) & (c)

Description : Contracts made after incorporation but before the grant of Certificate of commencement of Business _________ A. Provisional contracts B. Pre incorporation contracts C. Preliminary contracts D. Both (b) & (c)

Last Answer : A. Provisional contracts

Which of the following are limitations of break-even analysis? A. Static concept B. Capital employed is taken into account. C. Limitation of non-linear behaviour of costs D. Limitation of presence of perfect competition

Description : Which of the following are limitations of break-even analysis? A. Static concept B. Capital employed is taken into account. C. Limitation of non-linear behaviour of costs D. Limitation of presence of perfect competition

Last Answer : A. Static concept

In case of an agreement to sell, action against a third party for damaging the goods can be taken by: A. The seller B. The buyer C. Both D. None

Description : In case of an agreement to sell, action against a third party for damaging the goods can be taken by: A. The seller B. The buyer C. Both D. None

Last Answer : A. The seller