This quiz works best with JavaScript enabled. Home > Economy > Accounting > Accounting – Quiz 11 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Accounting Quiz 11 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is working as demutualized stock exchange since from beginning? A) BSE. B) NSE. C) DSE. D) All of the above. Show Answer Correct Answer: B) NSE. 2. Which type of function may be performed by the finance manager for management of profitability? A) Pricing. B) Cost control. C) Forecasting future Profits. D) All of the above. Show Answer Correct Answer: D) All of the above. 3. Capital budgeting investment decision involve A) Long term assets. B) Capital expenditure. C) A long term function. D) All of the above. Show Answer Correct Answer: D) All of the above. 4. The stock turnover ratio is ..... A) Activity ratio. B) Solvency ratio. C) Financial ratio. D) Profitability ratio. Show Answer Correct Answer: A) Activity ratio. 5. '360' degree method relates to A) Retrenchments. B) Employees moral. C) Organization Climate. D) Performance appraisal. Show Answer Correct Answer: D) Performance appraisal. 6. Inventory is generally valued as lower of A) Cost and Sales Value. B) Sales Value and Profit. C) Cost and Net Realizable Value. D) Market Price and Replacement Cost. Show Answer Correct Answer: C) Cost and Net Realizable Value. 7. Cost of capital is helpful in corporative analysis of various A) Product. B) Source of Finance. C) Source of Material. D) Source of Services. Show Answer Correct Answer: B) Source of Finance. 8. Capital budgeting is known as A) Profit. B) Cost of Sales. C) Cost of Product. D) Capital Expenditure. Show Answer Correct Answer: D) Capital Expenditure. 9. Which trade policy results in the government levying both a specific tariff and an ad-valorem tariff on imported goods A) Nominal tariff. B) Effective tariff. C) Revenue tariff. D) Compound tariff. Show Answer Correct Answer: D) Compound tariff. 10. The Present values of total cash inflows should be compared with Present value of A) Income. B) Investment. C) Cash Inflows. D) Cash Outflows. Show Answer Correct Answer: D) Cash Outflows. 11. The power to forfeit shares must be provided in the A) Company Law Board. B) Registrar of Companies. C) Memorandum of Association. D) Articles of Association of the company as the Companies Act does not contain any provision regarding forfeiture of shares. Show Answer Correct Answer: D) Articles of Association of the company as the Companies Act does not contain any provision regarding forfeiture of shares. 12. Capital budgeting is also known as A) Investment Decision making. B) Planning Capital expenditure. C) Capital Expenditure Decisions. D) All of the above. Show Answer Correct Answer: D) All of the above. 13. In the calculation of return on shareholders investments the referred investment deals with A) Preference and equity capital only. B) All appropriations. C) All reserves. D) All of the above. Show Answer Correct Answer: D) All of the above. 14. The effect of the most-favored-nation (normal trade relations) clause is to A) Eliminate all tariffs between countries. B) Increase all tariff rates between countries. C) Maintain a discriminatory structure of tariffs. D) Maintain a nondiscriminatory structure of tariffs. Show Answer Correct Answer: D) Maintain a nondiscriminatory structure of tariffs. 15. When prices show a rising trend, which of the following methods of inventory valuation will result in lower income and lower valuation of inventory? A) FIFO. B) LIFO. C) Simple average method. D) Weighted average method. Show Answer Correct Answer: B) LIFO. 16. No. of units of domestic currency required to buy one unit of a foreign currency is known as A) Spot Rate. B) Cross-Rate. C) Direct Route. D) Indirect Route. Show Answer Correct Answer: A) Spot Rate. 17. If forfeited shares are reissued at a discount then the amount of discount should not exceed the A) Actual amount received on forfeited shares. B) Original discount on reissued shares, if any. C) Total amount of (a) and (b). D) 10 % of face value of shares. Show Answer Correct Answer: C) Total amount of (a) and (b). 18. Which one of the following is correct about margin of safety ratio? A) Contribution / sales value. B) Contribution / Sales of BEP. C) Capital employ / Net worth. D) Operating profit / contribution. Show Answer Correct Answer: B) Contribution / Sales of BEP. 19. Cash flows denominated in foreign currency are reported in a manner consistent with A) AS-3. B) AS-9. C) AS-11. D) AS-16. Show Answer Correct Answer: C) AS-11. 20. Right shares can be issued at any time after the expiry of A) One year from the first allotment of shares in the company. B) Two years from the formation of a company. C) (A) or (B) whichever is earlier. D) (A) or (B) whichever is latter. Show Answer Correct Answer: C) (A) or (B) whichever is earlier. ← PreviousNext →Related QuizzesEconomy QuizzesAccounting Quiz 1Accounting Quiz 2Accounting Quiz 3Accounting Quiz 4Accounting Quiz 5Accounting Quiz 6Accounting Quiz 7Accounting Quiz 8Accounting Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books