Top 150+ Solved Accounting for Managerial Decisions MCQ Questions Answer
Q. The 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
Q. If the current assets and working capital of a company are rs.80,000 and rs.50000 then currentliability will be-------------
a. Rs.1,00,000
b. Rs.1,30,000
c. Rs.70000
d. Rs.30000
Q. The ratio which is a good indicator to maintain the correct selling price and efficiency of tradingactivity is------
a. Net profit ratio
b. Gross profit ratio
c. Current ratio
d. Liquid ratios
Q. Return on investment is a----------------
a. Profit and loss account ratio
b. Balance sheet ratio
c. Combined ratio
d. Position statement ratio
Q. Debtors turnover ratio also known as----------
a. Payable turnover
b. Receivable turnover ratio
c. Creators turnover ratio
d. Debtors velocity
Q. 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
Q. Net capital employed is equal to ---------------
a. Total assets minus liabilities
b. Fixed asset plus net working capital
c. Total asset minus long-term liabilities
d. Total assets
Q. 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
Q. Lower stock turnover ratio indicates-------------------------------
a. Solvency position
b. Monopoly situation
c. Over investment in inventory
d. None of these
Q. Collection of book debts-----
a. Has no effect on current ratio
b. Has decreased in current ratio
c. Has increased in current ratio
d. None of these
Q. Debt equity ratio is a--------------------------------------
a. Profitability ratio
b. Turnover ratio
c. Short term solvency ratio
d. Long term solvency ratio
Q. Market price per share divided by earnings per share is-------
a. Price earning ratio
b. Return on equity
c. Market test ratio
d. Book value per share
Q. Solvency ratio indicates-----------------
a. Credit worthiness
b. Activity
c. Profitability
d. None of these
Q. 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