This quiz works best with JavaScript enabled. Home > Economy > Accounting > Accounting – Quiz 13 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Accounting Quiz 13 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which factor determines capital structure? A) Risk. B) Cost of Capital. C) Trading on Equity. D) All of the above. Show Answer Correct Answer: D) All of the above. 2. A firm is compulsorily dissolved when A) The business becomes illegal. B) All the partners become insolvent. C) All the partners except one become is insolvent. D) All of the above. Show Answer Correct Answer: D) All of the above. 3. A short-term lease which is often cancellable is known as A) Net Lease. B) Finance Lease. C) Leverage Lease. D) Operating Lease. Show Answer Correct Answer: D) Operating Lease. 4. For the purpose of calculating ROI capital employed means A) Gross Block. B) Net Fixed assets. C) Current assets - current liabilities. D) Fixed assets + current assets - current liabilities. Show Answer Correct Answer: D) Fixed assets + current assets - current liabilities. 5. Dividend is income for the A) SEBI. B) Company. C) Shareholders. D) Goods Suppliers. Show Answer Correct Answer: C) Shareholders. 6. Which of the following is a type of partner? A) Minor. B) Nominal. C) Sleeping or Dormant. D) All of the above. Show Answer Correct Answer: D) All of the above. 7. Which of the following statements is true in relation to liabilities? A) Currently existing obligations which the firm intends to meet at some time in the future. B) It must be capable of being expressed in money terms. C) Claims against the resources. D) All of the above. Show Answer Correct Answer: D) All of the above. 8. Which is Time Adjusted Method of Capital Budgeting? A) Pay-off method. B) Payout period method. C) Pay-back period method. D) Net present value method. Show Answer Correct Answer: D) Net present value method. 9. Total assets - Total external liabilities equal to A) Net Cost. B) Net assets. C) Net liabilities. D) Net Depreciation. Show Answer Correct Answer: B) Net assets. 10. Which of the following is a capital expenditure? A) Loss of stock by fire. B) Loss due to embezzlement by the manager. C) Compensation paid for breach of a contract to supply goods. D) Interest on borrowings during the period of construction of works. Show Answer Correct Answer: D) Interest on borrowings during the period of construction of works. 11. Which accounting standard deals with intagible assets? A) AS-2. B) AS-6. C) AS-14. D) AS-26. Show Answer Correct Answer: D) AS-26. 12. Which of the following cash flows is not a cash flow from operating activity? A) Payment of dividend. B) Cash payment to and on behalf of employees. C) Cash payments to suppliers for goods and services. D) Cash receipts from royalties, fees, commissions and other revenue. Show Answer Correct Answer: A) Payment of dividend. 13. Which one is not an important objective of financial Management? A) Value Maximisation. B) Profit Maximisation. C) Wealth Maximisation. D) Maximisation of Social benefits. Show Answer Correct Answer: D) Maximisation of Social benefits. 14. According to the guidelines issued by SEBI, a company has to create Debenture Redemption Reserve equivalent to .....of the amount of debentures issue before redemption of debentures commences. A) 25 %. B) 50 %. C) 75 %. D) 100 %. Show Answer Correct Answer: B) 50 %. 15. Which of the following recognises risk in capital budgeting analysis by adjusting estimated cash flows and employs risk-free rate to discount the adjusted cash flows? A) Cash. B) Inventory. C) Pay-back Period. D) Certainty Equivalent Approach. Show Answer Correct Answer: D) Certainty Equivalent Approach. 16. Goods withdrawn by the proprietor for his personal use are A) Added to the purchases. B) Treated as sales at cost price. C) Shown as a deduction from the sales. D) Shown as a deduction from the purchases. Show Answer Correct Answer: D) Shown as a deduction from the purchases. 17. The listed companies are allowed to pay brokerage on private placement of capital at the maximum rate of A) 0.5 %. B) 1.5 %. C) 2.5 %. D) 3.5 %. Show Answer Correct Answer: B) 1.5 %. 18. Which one of the following is not used to estimate cost of equity capital? A) External yield criterion. B) Capital asset pricing model. C) Dividend plus growth rate. D) Equity capitalisation approach. Show Answer Correct Answer: A) External yield criterion. 19. A newly established company cannot be successful in obtaining finance by way of A) Issue of debenture. B) Issue of equity capital. C) Issue of preference share. D) None of the above. Show Answer Correct Answer: A) Issue of debenture. 20. The Present Value of all inflows are cumulated in A) Order of Time. B) Order of Cash. C) Order of Sales. D) Order of Investment. Show Answer Correct Answer: A) Order of Time. ← 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