Download PDF
Free Download PDF of Accounting Questions with Answers as per exam pattern, to help you in day to day learning. We provide all important questions and answers for all Exam.
25. Which ratio is calculated to ascertain the efficiency of inventory management in terms of capital
investment?
- [A] stock velocity ratio
- [B] debtors velocity ratio
- [C] creditors velocity ratio
- [D] working capital turnover ratio
Answer: Option [A]
26. Which ratio measures the number of times the receivables are rotated in a year in terms of sales?
- [A] stock turnover ratio
- [B] debtors turnover ratio
- [C] creditors velocity ratio
- [D] working capital turnover ratio
Answer: Option [B]
27. Current assets - current liabilities =
- [A] fixed capital
- [B] working capital
- [C] opening capital
- [D] closing capital
Answer: Option [B]
28. The ratio establishes the relationship between fixed assets and long-terms funds is
- [A] current ratio
- [B] fixed assets ratio
- [C] fixed assets turnover ratio
- [D] debt equity ratio
Answer: Option [B]
29. A high capital gearing ratio indicates
- [A] under capitalization
- [B] over capitalization
- [C] borrowed capital
- [D] long term funds
Answer: Option [A]
30. Low turnover of stock ratio indicates
- [A] solvency position
- [B] monopoly situation
- [C] overinvestment in inventory
- [D] liquidity position
Answer: Option [C]
31. All those assets which are converted into cash in the normal course of business within one year are
known as
- [A] fixed assets
- [B] current assets
- [C] fictitious assets
- [D] wasting assets
Answer: Option [B]
32. Any transaction between a current account and another current account does not affect
- [A] profit
- [B] funds
- [C] working capital
- [D] capital
Answer: Option [B]
33. Decrease in current asset
- [A] increases working capital
- [B] decreases working capital
- [C] decrease fixed capital
- [D] increase fixed capital
Answer: Option [B]
34. Decrease in current liability
- [A] increases working capital
- [B] decreases working capital
- [C] decreases fixed capital
- [D] ncreases fixed capital
Answer: Option [A]
35. Profit on sale of fixed assets is
- [A] non trading income
- [B] operating income
- [C] non trading gains
- [D] long term gain
Answer: Option [C]
36. In funds flow statement, funds from operations is
- [A] application of fund
- [B] source of cash
- [C] application of cash
- [D] source of fund
Answer: Option [D]
Please share this page