Top 550+ Solved Corporate Accounting MCQ Questions Answer
Q. Income statement ratios are also called
a. operating ratio
b. liquidity ratio
c. activity ratio
d. trend ratio
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 the capacity of the business unit to meet its short term obligation out ofits short 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. In a sound business, acid test ratio ________ is considered satisfactory
a. 1:2
b. 2:1
c. 1:1
d. 0.5:1
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. Lower stock turnover ratio indicates ________.
a. solvency position
b. monopoly situation
c. over investment in inventory
d. none of these
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. When all debentures are redeemed, balance in the Debenture Redemption Fund Account istransferred to:
a. capital reserve
b. general reserve
c. profit & loss appropriation a/c
d. none of these
Q. Premium on redemption of debentures is a
a. personal a/c
b. real a/c
c. nominal a/c
d. suspense a/c