Top 150+ Solved Accounting for Managerial Decisions MCQ Questions Answer
Q. Leverage ratios are also known as -------------- ratios
a. Short term solvency ratios
b. Long term solvency ratios
c. Solvency ratio
d. Liquidity ratio
Q. The ratios that shows tha capacity of the business unit to meet its short term obligation out of itsshort term resources is known as --------------
a. Solvency ratio
b. Leverage ratio
c. Liquidity ratio
d. Trend Ratio
Q. The ratio that highlight the end result of business activities are known as ---------------- ratios
a. Liquidity
b. Leverage
c. Activity
d. Profitability
Q. The efficiency of the management can be measured with the help of ------------------
a. Activity ratio
b. Leverage ratio
c. Liquidity ratio
d. Profitability ratio
Q. The ratio of current asset to currnt liability is known as --------------
a. Liquid ratio
b. Current ratio
c. Absolute liquid ratio
d. Turn over ratio
Q. The asset, the amount of which can be realized within a period of one year are known as----------------
a. Current liability
b. Current asset
c. Liquid liability
d. Fixed asset
Q. The ratio which shows the relationship between borrowed funds and owners capital is ---------------
a. Proprietary ratio
b. Debt equity ratio
c. Capital gearing ratio
d. Fixed asset ratio
Q. Proprietary ratio measures the relationship between share holder fund and ------------------
a. Total asset
b. Fixed asset
c. Current asset
d. Fictious asset
Q. 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
Q. Debt service ratio is also known as --------------
a. Interest coverage ratio
b. Dividend payout ratio
c. Solvency ratio
d. Debtors turn over ratio
Q. Debt equity ratio is an example of ---------------- ratios
a. Balance sheet ratio
b. Profit & loss account ratio
c. Mixed ratio
d. Liquidity ratio
Q. Income tax payable come under ------------------
a. Long term liability
b. Long term fund
c. Current liability
d. Other liabilities
Q. Stock and prepaid expanses are not included in ----------------
a. Current asset
b. Fixed asset
c. Current liability
d. Quick asset
Q. In a sound business, acid test ratio ------------------- is considered satisfactory
a. 1:2
b. 2:1
c. 1:1
d. 0.5:1