Top 550+ Solved Corporate Accounting MCQ Questions Answer
Q. Goodwill is paid for obtaining __________.
a. Future benefit
b. Present benefit
c. Past benefit
d. None of the above
Q. The company earns a net profit of 24,000 with a capital of1,20,000. The NRR is10%. Under capitalisation of super profit, goodwill will be ___________.
a. 1,20,000
b. 70,000
c. 12,000
d. 24,000
Q. Fair value is not the average of intrinsic value and yield value.
a. True
b. False
c. none
d. none
Q. The ratio which shows the relationship b/w shareholder’s fund and total assets
a. debit equity ratio
b. proprietary ratio
c. solvency ratio
d. fixed asset
Q. Long term solvency of a firm can be measured by
a. current ratio
b. net profit ratio
c. gross profit ratio
d. debt equity ratio
Q. The ratio that shows the relationship between fixed asset to shareholders fund
a. fixed asset to net worth
b. fixed asset ratio
c. fixed assets turnover ratio
d. net worth ratio
Q. The index of efficiency and profitability of the business
a. operating ratio
b. operating profit ratio
c. expense ratio
d. net profit ratio
Q. The ratio that includes whether investment in inventory is efficiently used or not
a. inventory turnover ratio
b. working capital turnover ratio
c. fixed asset turnover ratio
d. activity ratio
Q. The main aim of the ratio analysis is to help the ______ of the firm
a. owners
b. officials
c. departments
d. management
Q. Ratios indicate trends in important items and this helps in _________
a. forecasting
b. reporting
c. analyzing
d. interpreting
Q. Ratios help the management in evolving market strategies through ________
a. inter firm comparison
b. intra firm comparison
c. ratios
d. none of the above
Q. Ratios may be used as a measure of ________
a. efficiency
b. solvency
c. profitability
d. none of the above
Q. An example of Balance Sheet ratio is _______
a. net profit ratio
b. inventory turnover ratio
c. current ratio
d. fixed asset turnover ratio