This quiz works best with JavaScript enabled. Home > Economy > Accounting > Accounting – Quiz 4 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Accounting Quiz 4 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. If the company announces dividend then it is necessary to pay it A) Within five years. B) Within six years. C) Within seven years. D) Within certain time. Show Answer Correct Answer: D) Within certain time. 2. Which exchange rate mechanism calls for frequent redefining of the par value by small amounts to remove a payments disequilibrium? A) Dual exchange rates. B) Crawling pegged exchange rates. C) Managed floating exchange rates. D) Adjustable pegged exchange rates. Show Answer Correct Answer: B) Crawling pegged exchange rates. 3. Unpaid calls are shown in the balance sheet of a company A) Under the head 'current assets'. B) Under the head 'current liabilities'. C) By adding it to the share capital. D) By deducting it from the called-up share capital. Show Answer Correct Answer: D) By deducting it from the called-up share capital. 4. Capital budgeting actually the process of making investment decisions in A) Fixed Assets. B) Current Assets. C) Sales Planning. D) Production process and style. Show Answer Correct Answer: A) Fixed Assets. 5. Capital expenditure is related with A) Long period. B) Large amount. C) Purchase of asset. D) All of the above. Show Answer Correct Answer: D) All of the above. 6. Small nations whose trade and financial relationships are mainly with a single partner tend to utilize A) Pegged exchange rates. B) Crawling exchange rates. C) Freely floating exchange rates. D) Managed floating exchange rates. Show Answer Correct Answer: A) Pegged exchange rates. 7. Which of the following assets would be taken into account for working capital turnover ratio. A) Stock. B) Sales. C) Bank. D) All of the above. Show Answer Correct Answer: D) All of the above. 8. To test the liquidity of a concern which of the following ratios are useful? A) Acid test ratio. B) Capital turnover ratio. C) Bad Debt to sales ratio. D) Lnventory turnover ratio. Show Answer Correct Answer: A) Acid test ratio. 9. Cost of capital from all the sources of funds is called A) Implicit Cost. B) Specific cost. C) Composite cost. D) Simple Average Cost. Show Answer Correct Answer: C) Composite cost. 10. Foreign Currency Exchange Rate risk can be hedged in A) Money Market. B) Futures Market. C) Options Market. D) All of the above. Show Answer Correct Answer: D) All of the above. 11. If the current ratio stands at 2 : 1 an equal increase in current assets and current liabilities would..... the current ratio. A) Increase. B) Decrease. C) Not change. D) Cause fluctuations. Show Answer Correct Answer: B) Decrease. 12. According to which of the following concepts, fixed assets are depreciated over their useful life rather than over a shorter period on the expectation of early liquidation? A) Going concern concept. B) Business entity concept. C) Matching concept. D) Cost concept. Show Answer Correct Answer: A) Going concern concept. 13. Which one of the following branches of accounting primarily deals with processing and presenting of accounting data for internal use? A) Tax accounting. B) Inflation accounting. C) Financial accounting. D) Management accounting. Show Answer Correct Answer: D) Management accounting. 14. Financial statements are aflected by A) Recorded facts. B) Personal judgements. C) Accounting conventions. D) All of the above. Show Answer Correct Answer: D) All of the above. 15. Financial Management is a part of A) Business Management. B) Financial Accounting. C) Accounting. D) All of the above. Show Answer Correct Answer: A) Business Management. 16. AS - 6 deals with depreciation accounting and applies to all depreciable assets, except A) Goodwill and livestock. B) Wasting assets and expenditure on research and development. C) Forests, plantations and similar regenerative natural resources. D) All of the above. Show Answer Correct Answer: D) All of the above. 17. Which is helpful in evaluation of financial efficiency of top management? A) Brand. B) Cost of capital. C) Product quality. D) Capital structure. Show Answer Correct Answer: B) Cost of capital. 18. Which of the following accounting equation is correct? A) Capital- Liabilities = Assets. B) Capital = Assets + Liabilities. C) Capital + Assets = Liabilities. D) Capital + Liabilities= Assets. Show Answer Correct Answer: D) Capital + Liabilities= Assets. 19. Cost of Equity Share Capital is more than cost of debt because A) Equity shares are easily saleable. B) Equity shares have higher risk than debt. C) Face value of debentures is more than face value of shares. D) All of the above. Show Answer Correct Answer: B) Equity shares have higher risk than debt. 20. The assets of a business can be classified as A) Only fixed assets. B) Only current assets. C) Fixed and current assets. D) None of the above. Show Answer Correct Answer: C) Fixed and current assets. ← PreviousNext →Related QuizzesEconomy QuizzesAccounting Quiz 1Accounting Quiz 2Accounting Quiz 3Accounting Quiz 5Accounting Quiz 6Accounting Quiz 7Accounting Quiz 8Accounting Quiz 9Accounting Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books