This quiz works best with JavaScript enabled. Home > Economy > Accounting > Accounting – Quiz 9 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Accounting Quiz 9 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is not a capital budgeting decision? A) Merger. B) Inventory level. C) Expansion programme. D) Replacement of an asset. Show Answer Correct Answer: B) Inventory level. 2. There should be a provision in the .....of the company for capitalisation of reserves A) Prospectus. B) Articles of Association. C) Memorandum of Association. D) None of these. Show Answer Correct Answer: B) Articles of Association. 3. Which method of capital budgeting called benefit cost ratio? A) Payout period method. B) Pay back period method. C) Profitability Index method. D) Net present value method. Show Answer Correct Answer: C) Profitability Index method. 4. Which one of the following is correct A) Role of thumb for current ratio is 2: 1. B) Liquid ratio is also known as acid test ratio. C) A ratio is an arithmetical relationship of one number to another number. D) All of the above. Show Answer Correct Answer: D) All of the above. 5. The first computerised online stock exchange in India was A) BSE. B) NSE. C) MCX. D) OTCEI. Show Answer Correct Answer: D) OTCEI. 6. Interest coverage Ratio is given by A) Net profit / Interest on Debt. B) Debt capital / Interest on Debt. C) Profit Before Tax / Interest on Debt. D) Earning Before Interest and Tax / lnterest on Debt. Show Answer Correct Answer: D) Earning Before Interest and Tax / lnterest on Debt. 7. What does the ROI take into account? A) Net worth. B) Net fixed assets. C) Operating expenses. D) Shareholder's investment. Show Answer Correct Answer: B) Net fixed assets. 8. GAAP stands for A) General Annual Accounting Principles. B) General Accepted Accounting Practices. C) Generally Accepted Accounting Principles. D) None of theabove. Show Answer Correct Answer: C) Generally Accepted Accounting Principles. 9. The NAFTA is a A) Customs union. B) Free trade area. C) Common market. D) Monetary union. Show Answer Correct Answer: B) Free trade area. 10. Closing stock is valued at A) Cost or market price whichever is lower. B) Market value. C) Cost. D) None of the above. Show Answer Correct Answer: A) Cost or market price whichever is lower. 11. Valuation of inventory is dealt with in A) AS-1. B) AS-2. C) AS-3. D) AS-4. Show Answer Correct Answer: B) AS-2. 12. Difference between the bank balance as per Cash Book and Pass Book may be due to A) Float. B) Factoring. C) Overdraft. D) None of the above. Show Answer Correct Answer: A) Float. 13. Accounting is concerned with A) Monetary transactions. B) Non-monetary transactions. C) Monetary and non-monetary transactions. D) None of the above. Show Answer Correct Answer: A) Monetary transactions. 14. What does creditors turnover ratio take into account? A) Total cash sales. B) Total credit sales. C) Total credit purchase. D) Total cash purchases. Show Answer Correct Answer: C) Total credit purchase. 15. Standard deviation can be used to measure A) Risk of an investment. B) Return of an investment. C) Both (a) and (b). D) None of these. Show Answer Correct Answer: A) Risk of an investment. 16. Which of the following reserves are free reserves that can be used for issue of bonus shares? A) General reserve. B) Surplus in profit and loss account. C) Securities premium collected in cash only. D) All of the above. Show Answer Correct Answer: D) All of the above. 17. Accounting rules, practices and conventions should not change from one year to another as per the A) Convention of materiality. B) Convention of consistency. C) Convention of conservatism. D) Convention of full disclosure. Show Answer Correct Answer: B) Convention of consistency. 18. Which is the form of dividend? A) Cash dividend. B) Bond dividend. C) Stock dividend. D) All of these. Show Answer Correct Answer: D) All of these. 19. The investment of long term funds is made after a careful assessment of the various projects through A) Sales. B) Fund flow. C) Cost of capital. D) Capital budgeting. Show Answer Correct Answer: D) Capital budgeting. 20. Most tariffs have A) Only revenue effects. B) Only protective effects. C) Both protective and revenue effects. D) Neither protective or revenue effects. Show Answer Correct Answer: C) Both protective and revenue effects. ← PreviousNext →Related QuizzesEconomy QuizzesAccounting Quiz 1Accounting Quiz 2Accounting Quiz 3Accounting Quiz 4Accounting Quiz 5Accounting Quiz 6Accounting Quiz 7Accounting Quiz 8Accounting Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books