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Accounting Quiz 2 (60 MCQs)

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1. Which exchange rate mechanism calls for frequent redefining of the par value by small amounts to remove a payments disequilibrium?
2. Unpaid calls are shown in the balance sheet of a company
3. Capital budgeting actually the process of making investment decisions in
4. Capital expenditure is related with
5. Small nations whose trade and financial relationships are mainly with a single partner tend to utilize
6. Which of the following assets would be taken into account for working capital turnover ratio.
7. To test the liquidity of a concern which of the following ratios are useful?
8. Cost of capital from all the sources of funds is called
9. Foreign Currency Exchange Rate risk can be hedged in
10. If the current ratio stands at 2 : 1 an equal increase in current assets and current liabilities would..... the current ratio.
11. 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?
12. Which one of the following branches of accounting primarily deals with processing and presenting of accounting data for internal use?
13. Financial statements are aflected by
14. Financial Management is a part of
15. AS - 6 deals with depreciation accounting and applies to all depreciable assets, except
16. Which is helpful in evaluation of financial efficiency of top management?
17. Which of the following accounting equation is correct?
18. Cost of Equity Share Capital is more than cost of debt because
19. The assets of a business can be classified as
20. Which one refers to cash in how under pay back period method?
21. Cost of Redeemable Preference Share Capital is
22. Financial planning starts with the preparation of
23. The amount in unpaid dividend accounts of companies shall be transferred to the
24. AS-19 deals with
25. The cost of debt capital is calculated on the basis of
26. 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
27. The current ratio of a company is 2 : 1. Which of the following suggestions would not change it?
28. Dividend is given on
29. The net profit ratio is the ratio of net profit to
30. ..... is needed to balance the balance of payments statement.
31. Following are some of the objectives of accounting
32. Dividing the net profit by the paid up amount of equity share capital yields .....
33. The sale of inventory on account will cause the quick ratio to
34. Which is the internal source of finance?
35. A tariff that prohibits imports has only
36. The cost of depreciation funds is calculated according to
37. A company earns sufficient profit before the close of the financial year and its management declares dividend, this dividend is called
38. The Gordon 's model of dividend policy is based on
39. The institutional framework developed in 1947 to promote trade liberalization is known as
40. The need of capital budgeting in a firm arises on account of the
41. A risk-free stock has a beta value equals
42. Which statement is true about financial management?
43. Ratio Analysis can be used to study liquidity, turnover, profitability, etc. of a firm. What does Debt-Equity Ratio help to study?
44. The issue of sweat equity shares is authorised by a special resolution passed by the company in the
45. A low stock turnover ratio is not desirable because it reveals the
46. Comparison of financial variables of a business enterprise over a period of time is called
47. If the current ratio is 2 : 1 and working capital is Rs. 60,000, What is the value of the current assets?
48. When the proprietor withdraws or takes away some goods from the business for his personal use or consumption, he records the withdrawals at
49. The satisfactory ratio between internal and external equity is .....
50. Which is called as Dividend Ratio Method?
51. Dividend is allocated to the shareholders of
52. For advanced countries such as the United States, tariffs on imported raw materials tend to be
53. Working Capital Turnover measures the relationship of Working Capital with
54. Which of the following factors should be considered while estimating the useful life of a depreciable asset?
55. Which of the following will cause an increase in bond values?
56. Bills of exchange are shown under the head
57. There is deterioration in the management of work capital of XYZ Ltd. What does it refer to?
58. Which is the type of dividend?
59. Which is the element of capital budgeting decision?
60. Price-earning ratio is equal to market price per equity share divided by .....
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