1. Ratio of ‘net sales’ to’ net W.C’ is a:-
A) W.C. turnover ratio
B) Profitability ratio
C) Liquidity ratio
D) Can’t say
Ans. (a)
2. Observing changes in the financial variable across the years in:-
A) Vertical analysis.
B) Horizontal analysis.
C) Inter-firm comparison.
D) None
Ans. (b)
3. Ratio of net profit before interest & fax to sales in a:-
A) Operating profit ratio
B) Capital gearing
C) Solvency ratio
D) Can’t say
Ans. (a)
4. The statistical yardstick that provides a measure of the relationship
Between two accounting figures in:-
A) A operating current ratio
B) The accounting ratio
C) Input-output ratio
D) None
Ans. (b)
5. Debt equity ratio is a:-
A) Liquidity ratio
B) Solvency ratio
C) Profitability ratio
D) None
Ans. (b)
6. The turnover ratio helps management in:-
A) Managing resources
B) Managing a debit
C) Evaluating performance
Ans. (c)
7. Long term solvency is indicated by
A) Current ratio
B) Debt / easily ratio
C) Net profit ratio
Ans. (b)
8. The three most useful general purpose financial statements for management are:-
a) P & L A/C, B/S & statement of retained earnings.
b) P & L A/C, B/S & statement of changes in financial position.
c) P & L A/C, fund flow statement, stat of R.E
d) Stat. of R.E, B/S & fund flow statement
Ans. (b)
9. In case of a Ltd. Co. the term financial statement includes:-
a) P & L A/C & B/S
b) P & L A/C P & L appropriation A/C & B/S.
c) B/S
d) None
Ans. (b)
10. The term current assets do not include:-
a) Payments in advance
b) Bills receivable
c) Long-term deferred charges.
e) None
Ans. (c)
11. The following is a recorded fact:-
a) Mkt. Value of investment
b) Debtors
c) Replacement cost of M/C
d) None
Ans. (b)
12. The term fixed assets include:-
a) Stock in trade
b) Furniture
c) Payments in advance.
d) None
Ans. (b)