Top 550+ Solved Management Accounting MCQ Questions Answer
Q. Proprietary ratio measures the relationship between share holder fund and ------------------
a. Total asset
b. Fixed asset
c. Current asset
d. Fictious asset
Q. The relationship between total outside liabilities and total assets can be indicated through ------------
a. Fixed asset ratio
b. Solvency ratio
c. Fixed asset turn over ratio
d. Proprietary ratio
Q. Debt service ratio is also known as --------------
a. Interest coverage ratio
b. Dividend payout ratio
c. Solvency ratio
d. Debtors turn over ratio
Q. Debt equity ratio is an example of ---------------- ratios
a. Balance sheet ratio
b. Profit & loss account ratio
c. Mixed ratio
d. Liquidity ratio
Q. Income tax payable come under ------------------
a. Long term liability
b. Long term fund
c. Current liability
d. Other liabilities
Q. Stock and prepaid expanses are not included in ----------------
a. Current asset
b. Fixed asset
c. Current liability
d. Quick asset
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. Cost of good sold+operating expanses=-------------------------
a. Total cost
b. Cost of product
c. Cost of sales
d. Operating cost
Q. Example of activity ratios ------------------------
a. Gross profit ratio
b. Net profit ratio
c. Operating ratio
d. Stock turn over ratio
Q. Example of leverage ratio
a. Debtors velocity
b. Stock turnover ratio
c. Current ratio
d. Solvency ratio
Q. Current ratio is an example of --------------------
a. Leverage ratio
b. Liquidity ratio
c. Activity ratio
d. Turnover ratio
Q. Stock turn over ratio is an example of -------------------
a. Liquidity ratio
b. Leverage ratio
c. Profitability ratios
d. Activity ratios
Q. Ratio analysis is a study of relationship among various --------------- factors in a business
a. Operational
b. Official
c. Financial
d. Others
Q. Liquidity ratios measure the --------- solvency of a firm
a. Long term
b. Short term
c. Average
d. Others
Q. By computing current ratio ---------------- solvency of a concern is assessed
a. Short term
b. Long term
c. Liquidity
d. Profitability