Top 150+ Solved Advance Accounting MCQ Questions Answer

From 166 to 176 of 176

Q. The ratio shows the preference dividend as a proportion of profit available forshareholders is

a. interest cover ratio.

b. fixed dividend cover ratio.

c. debt service coverage ratio.

d. dividend yield ratio.

  • b. fixed dividend cover ratio.

Q. The dividend is related to the market value of shares in .

a. interest cover ratio.

b. fixed dividend cover ratio.

c. debt service coverage ratio.

d. dividend yield ratio.

  • d. dividend yield ratio.

Q. Turnover ratio is also known as .

a. activity ratios.

b. solvency ratios.

c. liquidity ratios.

d. profitability ratios.

  • a. activity ratios.

Q. Inventory or stock turnover ratio is also called .

a. stock velocity ratio.

b. debtors velocity ratio.

c. creditors velocity ratio.

d. working capital turnover ratio.

  • a. stock velocity ratio.

Q. Which ratio is calculated to ascertain the efficiency of inventory managementin terms of capital investment?

a. stock velocity ratio.

b. debtors velocity ratio.

c. creditors velocity ratio.

d. working capital turnover ratio.

  • a. stock velocity ratio.

Q. The ratio which measures the relationship between the cost of goods sold andthe amount of average inventory is

a. stock turnover ratio.

b. debtors velocity ratio.

c. creditors velocity ratio.

d. working capital turnover ratio.

  • a. stock turnover ratio.

Q. Sales – Gross Profit = .

a. net profit.

b. administrative expenses.

c. cost of production.

d. cost of goods sol

  • d. cost of goods sold.

Q. Opening stock + purchases + direct expenses – closing stock =

a. net profit.

b. cost of production

c. administrative expenses.

d. cost of goods sold

  • d. cost of goods sold

Q. Which ratio measures the number of times the receivables are rotated in ayear in terms of sales?

a. stock turnover ratio.

b. debtors turnover ratio.

c. creditors velocity ratio.

d. working capital turnover ratio.

  • b. debtors turnover ratio.

Q. Debtors turnover ratio is also called .

a. stock turnover ratio.

b. debtors velocity ratio.

c. creditors velocity ratio.

d. working capital turnover ratio

  • b. debtors velocity ratio.

Q. Creditors turnover ratio is also called .

a. stock turnover ratio.

b. debtors velocity ratio.

c. accounts payables ratio.

d. working capital turnover ratio.

  • c. accounts payables ratio.
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