Top 150+ Solved Advance Accounting MCQ Questions Answer
Q. Profit for the objective of calculating a ratio may be taken as
a. Profit before tax but after interest
b. Profit before interest &tax
c. Profit after interest & tax
d. All the above
Q. If sales is Rs 5,00,000 & net profit is Rs 1,20,000 Net profit ratio is
a. 24%
b. 416%
c. 60%
d. None of the above
Q. Financial Statement Analysis can be used for assessment of past performanceonly.
a. false
b. true
c. either true or false
d. only true
Q. Ratio analysis is an important means of expressing the relationship between two numbers.
a. true
b. false
c. may be false
d. a and b both
Q. Liquid Ratio is also known as 2:1 ratio.
a. false
b. true
c. either true or false
d. none of the above
Q. Current ratio indicates the solvency position of the business.
a. true
b. false
c. may be false
d. a and b
Q. Reliability of ratios depend upon the reliability of financial data.
a. true
b. false
c. only a
d. both a and b.
Q. Ratio analysis ensures effective cost control.
a. true
b. false
c. none of the above
d. may be both
Q. The ratios which reveal the final result of the managerial policies and performance is…………..
a. turnover ratios.
b. profitability ratios.
c. short term solvency ratio.
d. long term solvency ratio.
Q. Return on investment is a .
a. turnover ratios.
b. short term solvency ratio.
c. profitability ratios.
d. long term solvency ratio.