This quiz works best with JavaScript enabled. Home > Economy > Accounting > Accounting – Quiz 5 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Accounting Quiz 5 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which one refers to cash in how under pay back period method? A) Cash flow before depreciation and after taxes. B) Cash flow after depreciation but before taxes. C) Cash flow before depreciation and taxes. D) Cash flow after depreciation and taxes. Show Answer Correct Answer: A) Cash flow before depreciation and after taxes. 2. Cost of Redeemable Preference Share Capital is A) Rate of Dividend. B) After Tax Rate of Dividend. C) Discount Rate that equates PV of inflows and outflows relating to capital. D) None of the above. Show Answer Correct Answer: B) After Tax Rate of Dividend. 3. Financial planning starts with the preparation of A) Cash budget. B) Master budget. C) Balance sheet. D) None of the above. Show Answer Correct Answer: D) None of the above. 4. The amount in unpaid dividend accounts of companies shall be transferred to the A) Investor Protection Fund. B) Investor Education and Protection fund. C) Dividend Equalisation Reserve of the company. D) General Revenue Account of the Central Government. Show Answer Correct Answer: B) Investor Education and Protection fund. 5. AS-19 deals with A) Leases. B) Borrowing Costs. C) Segment Reporting. D) Earning Per share. Show Answer Correct Answer: A) Leases. 6. The cost of debt capital is calculated on the basis of A) Capital. B) Net proceeds. C) Annual Interest. D) Arumal Depreciation. Show Answer Correct Answer: C) Annual Interest. 7. When several countries jointly impose common external tariffs, eliminate tariffs on each other, and eliminate barriers to the movement of labor and capital among themselves, they have formed a/an A) Customs union. B) Economic union. C) Free trade area. D) Common market. Show Answer Correct Answer: D) Common market. 8. The current ratio of a company is 2 : 1. Which of the following suggestions would not change it? A) Purchase of fixed assets. B) Bills receivable dishonoured. C) To discount accounts receivable. D) To borrow money for a short time on an interest bearing promissory note. Show Answer Correct Answer: A) Purchase of fixed assets. 9. Dividend is given on A) Debt Capital. B) Equity Capital. C) Bank Loan (long term). D) Borrowed (Debenture) Capital. Show Answer Correct Answer: B) Equity Capital. 10. The net profit ratio is the ratio of net profit to A) Net cash sales. B) Net credit sales. C) Net total sales. D) Capital employed. Show Answer Correct Answer: C) Net total sales. 11. ..... is needed to balance the balance of payments statement. A) Debit transactions. B) Credit transactions. C) Unilateral transfers. D) Statistical discrepancy. Show Answer Correct Answer: D) Statistical discrepancy. 12. Following are some of the objectives of accounting A) To ascertain whether the business operations have been profitable or not. B) To ascertain the financial position of the business. C) Maintaining systematic records and reporting on the custodianship of resources. D) Both (a) and (b). Show Answer Correct Answer: D) Both (a) and (b). 13. Dividing the net profit by the paid up amount of equity share capital yields ..... A) Rate of return on equity share capital. B) Temporary investment. C) Earning per share. D) None of the above. Show Answer Correct Answer: A) Rate of return on equity share capital. 14. The sale of inventory on account will cause the quick ratio to A) Increase. B) Decrease. C) Become zero. D) Not change. Show Answer Correct Answer: A) Increase. 15. Which is the internal source of finance? A) Provision for Taxation. B) Outstanding Payment. C) Depreciation funds. D) All of the above. Show Answer Correct Answer: D) All of the above. 16. A tariff that prohibits imports has only A) Revenue effect and protection effect. B) Consumption effect and protection effect. C) A revenue effect and redistribution effect. D) Redistribution effect and consumption effect. Show Answer Correct Answer: B) Consumption effect and protection effect. 17. The cost of depreciation funds is calculated according to A) Flow. B) Reserve Theory. C) Accounting Theory. D) Opportunity Cost Theory. Show Answer Correct Answer: D) Opportunity Cost Theory. 18. A company earns sufficient profit before the close of the financial year and its management declares dividend, this dividend is called A) Final dividend. B) Interim dividend. C) Special dividend. D) Proposed dividend. Show Answer Correct Answer: B) Interim dividend. 19. The Gordon 's model of dividend policy is based on A) The firm has perpetual life. B) In the firm r and K remain unchanged. C) The firm only uses retained earnings forfinancing its investment, it is all equity firm. D) All of the above. Show Answer Correct Answer: D) All of the above. 20. The institutional framework developed in 1947 to promote trade liberalization is known as A) The IMF. B) The WTO. C) The GATT. D) The World Bank. Show Answer Correct Answer: C) The GATT. ← PreviousNext →Related QuizzesEconomy QuizzesAccounting Quiz 1Accounting Quiz 2Accounting Quiz 3Accounting Quiz 4Accounting Quiz 6Accounting Quiz 7Accounting Quiz 8Accounting Quiz 9Accounting Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books