Top 550+ Solved Management Accounting MCQ Questions Answer
Q. Ratio of net profit before interest and tax to sales is------------------------------
a. Solvency ratio
b. Capital gearing
c. Operating profit ratio
d. None of these
Q. Lower stock turnover ratio indicates-------------------------------
a. Solvency position
b. Monopoly situation
c. Over investment in inventory
d. None of these
Q. Collection of book debts-----
a. Has no effect on current ratio
b. Has decreased in current ratio
c. Has increased in current ratio
d. None of these
Q. Debt equity ratio is a--------------------------------------
a. Profitability ratio
b. Turnover ratio
c. Short term solvency ratio
d. Long term solvency ratio
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. Solvency ratio indicates-----------------
a. Credit worthiness
b. Activity
c. Profitability
d. None of these
Q. Current ratio shows-----
a. The change in gross profit
b. The working capital position
c. The liquidity of assets
d. The change in net profit
Q. Current ratio is 4:1, the amount of current liabilities is Rs.12000 the amount of working capital is-----
a. Rs.48,000
b. Rs.36000
c. Rs.30000
d. Rs.60000
Q. Stock turnover ratio is used to determine -----------------------of an enterprise
a. Profitability
b. Liquidity& solvency
c. Efficiency
d. Growth
Q. Working capital is expressed as------
a. Current asset-fixed asset
b. Fixed assets-current liabilities
c. Current assets-current liabilities
d. None of these
Q. Dividend yield is an example for------ratio
a. Solvency
b. Liquidity
c. Market strength
d. Net worth
Q. Debtors turnover ratio is used to calculate------
a. efficiency
b. solvency
c. liquidity
d. profitability
Q. Rol measures-----
a. Profitability in relation to investment
b. Profitability in relation to sales
c. Operating efficiency
d. Long term solvency
Q. Debtors turnover ratio measures----------
a. Short term solvency
b. Operating efficiency
c. Long term solvency
d. Credit policy
Q. Fund flow refers to change in-----
a. Working capital
b. Fixed capital
c. Current capital
d. Increase in working capital