Question 1

Under single entry system the profit and loss can be found out and also it's comparison will be available.

Accepted Answer

A) true 
B) false 
C) both and b 
D) only false 
A) true 
B) false 
C) both and b 
D) only false B

Question 2

Current ratio indicates the solvency position of the business.

Accepted Answer

A) true 
B) false 
C) may be false 
D) a and b 
A) true 
B) false 
C) may be false 
D) a and b A

Question 3

Liquid asset is determined by

Accepted Answer

A) Current asset - stock - prepaid expense 
B) Current asset + Stock +prepaid expense 
C) Current asset + prepaid expense 
D) None of the above 
A) Current asset - stock - prepaid expense 
B) Current asset + Stock +prepaid expense 
C) Current asset + prepaid expense 
D) None of the above A

Question 4

Liquid Ratio is also known as 2:1 ratio.

Accepted Answer

A) false 
B) true 
C) either true or false 
D) none of the above 
A) false 
B) true 
C) either true or false 
D) none of the above

Question 5

Stock is considered as a liquid asset as anytime it can be converted into cash immediately.

Accepted Answer

A) Yes 
B) No 
C) Only YES 
D) None of the above 
A) Yes 
B) No 
C) Only YES 
D) None of the above

Question 6

Working capital turnover ratio can be determined by :

Accepted Answer

A) ( Gross profit / Working capital ) 
B) ( Cost of goods sold / Net sales ) 
C) ( Cost of goods sold / Working capital) 
D) None of the above 
A) ( Gross profit / Working capital ) 
B) ( Cost of goods sold / Net sales ) 
C) ( Cost of goods sold / Working capital) 
D) None of the above

Question 7

Profit for the objective of calculating a ratio may be taken as

Accepted Answer

A) Profit before tax but after interest 
B) Profit before interest &tax 
C) Profit after interest & tax 
D) All the above 
A) Profit before tax but after interest 
B) Profit before interest &tax 
C) Profit after interest & tax 
D) All the above

Question 8

The gross profit represents the net margin.

Accepted Answer

A) false 
B) true 
C) both a and b 
D) may be false 
A) false 
B) true 
C) both a and b 
D) may be false

Question 9

The relationship between two financial variables can be expressed in:

Accepted Answer

A) Pure ratio 
B) Percentage 
C) Rate or time 
D) all the above 
A) Pure ratio 
B) Percentage 
C) Rate or time 
D) all the above

Question 10

When the concept of ratio is defined in respect to the item shown in the financial statements, it is termed as

Accepted Answer

A) Accounting ratio 
B) Financial ratio 
C) costing ratio 
D) none of the above 
A) Accounting ratio 
B) Financial ratio 
C) costing ratio 
D) none of the above

Question 11

The ratio analysis is helpful to management in taking several decisions, but as a mechanical substitute for judgement and thinking, it is worse than useless.

Accepted Answer

A) True 
B) False 
C) may be false 
D) both a and b 
A) True 
B) False 
C) may be false 
D) both a and b

Question 12

They record a few translation completely just like the double entry system but a majority of the transactions are recorded only partially is known as incomplete records.

Accepted Answer

A) true 
B) false 
C) both a and b 
D) none of the above 
A) true 
B) false 
C) both a and b 
D) none of the above

Question 13

Ratio analysis helps in investment decision.

Accepted Answer

A) true 
B) false 
C) may be true 
D) a & b both 
A) true 
B) false 
C) may be true 
D) a & b both

Question 14

Which of the following is not included in current assets.

Accepted Answer

A) Debtors 
B) Stock 
C) Cash at bank 
D) Cash in hand 
A) Debtors 
B) Stock 
C) Cash at bank 
D) Cash in hand

Question 15

What will be the Gross Profit if , total sales is Rs 2,60,000,cost of net goods sold is Rs 2,00,000 & sales return is Rs10,000 ?

Accepted Answer

A) 13 % 
B) 28% 
C) 26% 
D) 20% 
A) 13 % 
B) 28% 
C) 26% 
D) 20%

Question 16

Ratio analysis is an important means of expressing the relationship between two numbers.

Accepted Answer

A) true 
B) false 
C) may be false 
D) a and b both 
A) true 
B) false 
C) may be false 
D) a and b both

Question 17

Profit and losses can't be ascertained because Trading and Profit and loss account can't be prepared.

Accepted Answer

A) true 
B) false 
C) may be true 
D) may be false 
A) true 
B) false 
C) may be true 
D) may be false

Question 18

Return on properties funds is also known as.

Accepted Answer

A) Return on net worth 
B) Return on shareholders fun 
C) Return on the shareholders investment 
D) All the above 
A) Return on net worth 
B) Return on shareholders fun 
C) Return on the shareholders investment 
D) All the above

Question 19

Single entry system is mixture of single entry, double entry and no entry.

Accepted Answer

A) true 
B) may be false 
C) only true 
D) none of the above 
A) true 
B) may be false 
C) only true 
D) none of the above

Question 20

Liquidity ratios are expressed in

Accepted Answer

A) Pure ratio form 
B) Percentage 
C) Rate or time 
D) None of the above 
A) Pure ratio form 
B) Percentage 
C) Rate or time 
D) None of the above

Under single entry system the profit and loss can be found out and also it's comparison will be available.

Current ratio indicates the solvency position of the business.

Liquid asset is determined by

Liquid Ratio is also known as 2:1 ratio.

Stock is considered as a liquid asset as anytime it can be converted into cash immediately.

Working capital turnover ratio can be determined by :

Profit for the objective of calculating a ratio may be taken as

The gross profit represents the net margin.

The relationship between two financial variables can be expressed in:

When the concept of ratio is defined in respect to the item shown in the financial statements, it is termed as

The ratio analysis is helpful to management in taking several decisions, but as a mechanical substitute for judgement and thinking, it is worse than useless.

They record a few translation completely just like the double entry system but a majority of the transactions are recorded only partially is known as incomplete records.

Ratio analysis helps in investment decision.

Which of the following is not included in current assets.

What will be the Gross Profit if , total sales is Rs 2,60,000,cost of net goods sold is Rs 2,00,000 & sales return is Rs10,000 ?

Ratio analysis is an important means of expressing the relationship between two numbers.

Profit and losses can't be ascertained because Trading and Profit and loss account can't be prepared.

Return on properties funds is also known as.

Single entry system is mixture of single entry, double entry and no entry.

Liquidity ratios are expressed in

Accounting Standards and Reporting in India

Banking Regulations and Accounting Practices in India

Insurance and Loss Assessment

Accounting and Co-Operative Society

Accounting and Financial Terms and Concepts

Branch Accounting and Single Entry System

Ratio Analysis and Financial Performance Metrics

Ratios and Turnovers in Accounting

Filters

Exam 7: Financial Statements and Ratio Analysis

Under single entry system the profit and loss can be found out and also it's comparison will be available.

Current ratio indicates the solvency position of the business.

Liquid asset is determined by

Liquid Ratio is also known as 2:1 ratio.

Stock is considered as a liquid asset as anytime it can be converted into cash immediately.

Working capital turnover ratio can be determined by :

Profit for the objective of calculating a ratio may be taken as

The gross profit represents the net margin.

The relationship between two financial variables can be expressed in:

When the concept of ratio is defined in respect to the item shown in the financial statements, it is termed as

The ratio analysis is helpful to management in taking several decisions, but as a mechanical substitute for judgement and thinking, it is worse than useless.

They record a few translation completely just like the double entry system but a majority of the transactions are recorded only partially is known as incomplete records.

Ratio analysis helps in investment decision.

Which of the following is not included in current assets.

What will be the Gross Profit if , total sales is Rs 2,60,000,cost of net goods sold is Rs 2,00,000 & sales return is Rs10,000 ?

Ratio analysis is an important means of expressing the relationship between two numbers.

Profit and losses can't be ascertained because Trading and Profit and loss account can't be prepared.

Return on properties funds is also known as.

Single entry system is mixture of single entry, double entry and no entry.

Liquidity ratios are expressed in

Accounting Standards and Reporting in India

Banking Regulations and Accounting Practices in India

Insurance and Loss Assessment

Accounting and Co-Operative Society

Accounting and Financial Terms and Concepts

Branch Accounting and Single Entry System

Ratio Analysis and Financial Performance Metrics

Ratios and Turnovers in Accounting

Filters