This quiz works best with JavaScript enabled. Home > Economy > Accounting > Accounting – Quiz 7 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Accounting Quiz 7 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Price-earning ratio is equal to market price per equity share divided by ..... A) Liquid assets. B) Current assets. C) Current liabilities. D) Earning per share. Show Answer Correct Answer: D) Earning per share. 2. Which of the following describes the relationship between systematic risk and return? A) Capital Market Line. B) Harry Marketing Model. C) Arbitrage Pricing Theory. D) Capital Assets Pricing Model. Show Answer Correct Answer: D) Capital Assets Pricing Model. 3. Which is the determinants of Capital Structure? A) Tax. B) Control. C) Government Policy. D) Requirement of Investors. Show Answer Correct Answer: C) Government Policy. 4. ZBB stands for A) Zero Bond Budget. B) Zero Base Budgeting. C) Zero Basel Budgeting. D) None of the above. Show Answer Correct Answer: B) Zero Base Budgeting. 5. Dividend is Product of A) Productivity. B) Management. C) Dividend Policy. D) Plant and Machinery. Show Answer Correct Answer: C) Dividend Policy. 6. Factoring involves A) Provision of Specialised Services relating to credit investigation. B) Purchase and Collection of debts. C) Sales ledger management. D) All of the above. Show Answer Correct Answer: D) All of the above. 7. In the debt equity ratio, external equity refers to A) Reserves. B) Only Debentures. C) Only current liabilities. D) Debentures and current liability. Show Answer Correct Answer: D) Debentures and current liability. 8. Factoring is a A) Cost of Sales. B) Production Plan. C) Financial Planning. D) New Financial Service. Show Answer Correct Answer: D) New Financial Service. 9. The correct order in which these are to appear in the balance sheet :- 1. Advance salary 2. Copyright 3. Preliminary expenses 4. Loose tools A) 1, 2, 3, 4. B) 2, 4, 1, 3. C) 3, 2, 4, 1. D) 4, 2, 1, 3. Show Answer Correct Answer: B) 2, 4, 1, 3. 10. A company pays dividend at the A) End of the financial year. B) End of the month. C) End of the week. D) All of the above. Show Answer Correct Answer: A) End of the financial year. 11. Which of the following branches of accounting are of recent origin? A) Social responsibility accounting. B) Human resources accounting. C) Both (a) and (b). D) Cost accounting. Show Answer Correct Answer: C) Both (a) and (b). 12. Under the Common Agricultural Policy, exports of any surplus quantities of EU produce are encouraged through the usage of A) Variable levies. B) Counter trade. C) Trigger prices. D) Export subsidies. Show Answer Correct Answer: D) Export subsidies. 13. Consider the following ratios A) Acid test ratio. B) Inventory turnover ratio. C) Both (a) and (b). D) Bad debts to sales ratio. Show Answer Correct Answer: C) Both (a) and (b). 14. Which of the following is not included in the category of 'Intangible Assets'? A) Machinery. B) Copy rights. C) Patents rights. D) Competitive benefit and privileges. Show Answer Correct Answer: A) Machinery. 15. The concept of present value is based on the A) Principle of compound. B) Principle of discounting. C) Both (a) and (b). D) None of the above. Show Answer Correct Answer: B) Principle of discounting. 16. In case the finn is all equity financed, WACC would be equal to A) Cost of Equity. B) Cost of Debt. C) Both (a) and (b). D) None of these. Show Answer Correct Answer: A) Cost of Equity. 17. Which of the following is the benefit of Depositories? A) Reduced Risk of stolen, fake, forged shares. B) Reduction in the share transfer time to the buyer. C) No Stamp duty on transfer of shares in dematerialized form. D) All of the above. Show Answer Correct Answer: D) All of the above. 18. If cash inflows are not uniform, the calculation of pay-back period takes a A) Cumulative Form. B) Common Profit. C) Favourable Position. D) All of the above. Show Answer Correct Answer: A) Cumulative Form. 19. In the computation of the debtors turnover ratio accounts receivable includes A) Debtors and B/R. B) Creditors and B/P. C) Debtors and creditors. D) Bank overdraft and loan. Show Answer Correct Answer: A) Debtors and B/R. 20. The capital structure of any business is an A) Income. B) Interest. C) Appropriate mixture of a number of securities. D) All of the above. Show Answer Correct Answer: C) Appropriate mixture of a number of securities. ← PreviousNext →Related QuizzesEconomy QuizzesAccounting Quiz 1Accounting Quiz 2Accounting Quiz 3Accounting Quiz 4Accounting Quiz 5Accounting Quiz 6Accounting Quiz 8Accounting Quiz 9Accounting Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books