Top 550+ Solved Management Accounting MCQ Questions Answer
Q. ---------------- ratio studies the firm’s ability to meet its long term financial position
a. Liquidity ratio
b. Profitability
c. Activity
d. Leverage
Q. Operating ratio establishes the relationship between --------------- and net sales
a. Cost of goods sold
b. Cost of sales
c. Cost of production
d. Operating cost
Q. For dividend yield ratio -------------- price of the equity shares is taken into consideration
a. Market
b. Cash
c. Cost
d. None of the above
Q. Coverage of fixed assets by shareholder’s equity is a good tests of----------------
a. solvency
b. liquidity
c. Activity
d. profitability
Q. Net worth refers to owner’s--------------------------
a. Equity
b. Solvency
c. Liability
d. None of these
Q. Ratio to assess the short term debt paying capacity of a firm is----------
a. Debt equity ratio
b. Propriety ratio
c. Liquid ratio
d. Solvency ratios
Q. The ratio which is used to ascertain the soundness of the long term financial position is------------
a. Debt equity ratio
b. Liquidity ratio
c. Activity ratio
d. Gross profit ratio
Q. If the current assets and working capital of a company are rs.80,000 and rs.50000 then current liability will be-------------
a. Rs.1,00,000
b. Rs.1,30,000
c. Rs.70000
d. Rs.30000
Q. The ratio which is a good indicator to maintain the correct selling price and efficiency of trading activity is------
a. Net profit ratio
b. Gross profit ratio
c. Current ratio
d. Liquid ratios
Q. Return on investment is a----------------
a. Profit and loss account ratio
b. Balance sheet ratio
c. Combined ratio
d. Position statement ratio
Q. Debtors turnover ratio also known as----------
a. Payable turnover
b. Receivable turnover ratio
c. Creators turnover ratio
d. Debtors velocity
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