This quiz works best with JavaScript enabled. Home > Economy > Accounting > Accounting – Quiz 22 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Accounting Quiz 22 (17 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The gross profit ratio is the ratio of gross profit to A) Closing stock. B) Net cash sales. C) Net credit sales. D) Net total sales. Show Answer Correct Answer: D) Net total sales. 2. Dividend is the portion of A) Debt. B) Profit. C) Assets of the company. D) Current Assets of the company. Show Answer Correct Answer: B) Profit. 3. A very important component of management accounting is A) Cost accounting. B) Contract accounting. C) Financial accounting. D) Management auditing. Show Answer Correct Answer: A) Cost accounting. 4. Which of the following aspects of revenue recognition is not dealt by AS-9? A) Revenue arising from governments grants and other similar subsidies. B) Revenue arising from hire-purchase, lease agreements. C) Revenue arising from construction contracts. D) All of the above. Show Answer Correct Answer: D) All of the above. 5. Before expiry date, the time value of a call option is A) Intrinsic Value. B) Spot Price - Strike Price. C) Strike Price - Spot Price. D) Market Premium - Intrinsic Value. Show Answer Correct Answer: D) Market Premium - Intrinsic Value. 6. Business Plans designed to achieve the organisation objective is called A) Strategic plan. B) Human Resource Planning. C) Human Resource forecasting. D) Corporate Development Plan. Show Answer Correct Answer: A) Strategic plan. 7. Which of the following Iiabilities are taken into account for the quick ratio? A) Bills payable. B) Bank overdraft. C) Sundry Debtors. D) All of the above. Show Answer Correct Answer: D) All of the above. 8. Income and Expenditure Account is prepared in non-trading concerns in lieu of A) Cash book. B) Trading account. C) Profit and loss account. D) Manufacturing account. Show Answer Correct Answer: C) Profit and loss account. 9. Capital employed equals A) Fixed Assets + Working Capital. B) Tangible Fixed and Intangible Assets + Current Assets - Current liabilities. C) Long-term debt + Share Capital + Reserves & Surplus - Fictitious Assets - Non-business Assets. D) All of the above. Show Answer Correct Answer: D) All of the above. 10. The cost of capital declines when the degree of financial leverage increases 'who advocated it'. A) Net income approach. B) Traditional Approach. C) Modigliani - Miller approach. D) Net operating income approach. Show Answer Correct Answer: A) Net income approach. 11. Cost of Capital for Bonds and Debentures is calculated on A) After Tax basis. B) Before Tax basis. C) Risk-free Rate of Interest basis. D) None of the above. Show Answer Correct Answer: A) After Tax basis. 12. Capital Budgeting is a part of A) Capital Structure. B) Investment Decision. C) Marketing Management. D) Working Capital Management. Show Answer Correct Answer: B) Investment Decision. 13. When Capital Redemption Reserve Account is opened? A) At the time of Reserve. B) At the time of equity repayment. C) At the time of Preference Share Redemption. D) All of the above. Show Answer Correct Answer: C) At the time of Preference Share Redemption. 14. Dividend Policy must be A) Fixed. B) Flexible. C) Flexible and Fixed both. D) None of these. Show Answer Correct Answer: B) Flexible. 15. Capital bonus is given A) By the issue of free fully paid shares known as bonus shares. B) By making partly paid shares as fully paid without getting cash from the shareholders. C) Both (a) and (b). D) By cash payment to shareholders. Show Answer Correct Answer: C) Both (a) and (b). 16. Which is the function of Treasurer? A) Management of Credit. B) Management of Pension. C) Both (a) and (b). D) None of the above. Show Answer Correct Answer: C) Both (a) and (b). 17. Identify the formula that is used to calculate the capital turnover ratio A) Credit sales/net worth. B) Net sales/Capital employed. C) Credit sales/ Capital employed. D) Net sales/ Average accounts payable. Show Answer Correct Answer: B) Net sales/Capital employed. ← PreviousRelated 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