This quiz works best with JavaScript enabled. Home > Economy > Accounting > Accounting – Quiz 19 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Accounting Quiz 19 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Du Pont Analysis deals with A) Capital Budgeting. B) Analysis of Profit. C) Analysis of Fixed Assets. D) Analysis of Current Assets. Show Answer Correct Answer: B) Analysis of Profit. 2. Accounting ratios can be expressed in the following forms A) Times. B) Fraction. C) Percentage. D) All of the above. Show Answer Correct Answer: D) All of the above. 3. The cash flow associated with extraordinary items should be classified as arising from A) Investing activities. B) Financing activities. C) Operating activities. D) All of the above. Show Answer Correct Answer: D) All of the above. 4. In some cases assessment year and previous year can be same financial year. A) True. B) False. C) Is decided by the Assessing Officer. D) Cannot be said with certainty. Show Answer Correct Answer: A) True. 5. The issue of equity capital in exchange of plant and machinery will cause the return on equity capital to A) Increase. B) Decrease. C) Fluctuate. D) Remain unchanged. Show Answer Correct Answer: B) Decrease. 6. Proprietary ratio indicates the relationship between proprietor's funds and ..... . A) Reserve. B) Debentures. C) Share capital. D) Total assets. Show Answer Correct Answer: D) Total assets. 7. The proposal is accepted if the profitability index is more than A) Zero. B) One. C) Three. D) Five. Show Answer Correct Answer: A) Zero. 8. The net income of the company should ideally be ----- times of the fixed internal charges. A) 3 or 4. B) 4 or 5. C) 5 or 6. D) 6 or 7. Show Answer Correct Answer: D) 6 or 7. 9. Currency speculation is ..... if speculators bet against market forces that cause exchange fluctuations, thus moderating such fluctuations. A) Stabilizing. B) Inflationary. C) Deflationary. D) Destabilizing. Show Answer Correct Answer: A) Stabilizing. 10. The firm is said to be more geared, if equity capital is more than the debentures and ..... A) Loan. B) Reserve. C) Total assets. D) Preference share capital. Show Answer Correct Answer: D) Preference share capital. 11. Which of the following is an advantage of standard costing? A) Determination of variance. B) Facilitates cost control. C) Measuring efficiency. D) All of the above. Show Answer Correct Answer: D) All of the above. 12. The presence of fixed costs in the total cost structure of a firm results into A) Super Leverage. B) Financial Leverage. C) Operating Leverage. D) None of the above. Show Answer Correct Answer: C) Operating Leverage. 13. Return on total assets ratio is equal to ..... divided by total asset A) Current assets. B) Current liabilities. C) Earning per share. D) Net income before preference dividend and interest paid. Show Answer Correct Answer: D) Net income before preference dividend and interest paid. 14. Which is the method of Capital budgeting? A) Rate of Return Method. B) Pay back period Method. C) Net Present Value Method. D) All of the above. Show Answer Correct Answer: D) All of the above. 15. Members of the EU find that trade creation is fostered when their economies are A) Highly competitive. B) Geographically distant. C) Highly noncompetitive. D) Small in economic importance. Show Answer Correct Answer: A) Highly competitive. 16. Contingent liability is shown due to A) Dual aspect concept. B) Convention of materiality. C) Convention of conservatism. D) Convention of full disclosure. Show Answer Correct Answer: B) Convention of materiality. 17. Legal cost incurred in case of disputed land and building is classified as A) Operating activity. B) Investing activity. C) Financing activity. D) All of the above. Show Answer Correct Answer: B) Investing activity. 18. Business loss can be set off against salary income A) False. B) True. C) Cannot be said with certainty. D) Is decided by the Assessing Officer. Show Answer Correct Answer: A) False. 19. After declaration dividends are paid to the shareholders as per the provision of A) RBI Act. B) SEBI Act. C) Indian Contract Act. D) Indian Companies Act. Show Answer Correct Answer: B) SEBI Act. 20. Unabsorbed depreciation which could not be set off in the same assessment year, can be carried forward for A) 4 Years. B) 6 Years. C) 8 Years. D) Indefinitely. Show Answer Correct Answer: D) Indefinitely. ← 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