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Accounting Quiz 3 (25 MCQs)

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1. Which is the items of capital structure?
2. Amalgamation of firms takes place to
3. Financial break-even level of EBIT is
4. The European Union is an example of a/an
5. The difference between bid (buying) rates and ask (selling) rates is called the
6. Identify the transaction that has no effect on the current ratio.
7. Under the EU's Common Agricultural Policy, a variable import levy equals the
8. Payment to creditors is a manifestation of cash held for
9. If the company announces dividend then it is necessary to pay it
10. Which exchange rate mechanism calls for frequent redefining of the par value by small amounts to remove a payments disequilibrium?
11. Unpaid calls are shown in the balance sheet of a company
12. Capital budgeting actually the process of making investment decisions in
13. Capital expenditure is related with
14. Small nations whose trade and financial relationships are mainly with a single partner tend to utilize
15. Which of the following assets would be taken into account for working capital turnover ratio.
16. To test the liquidity of a concern which of the following ratios are useful?
17. Cost of capital from all the sources of funds is called
18. Foreign Currency Exchange Rate risk can be hedged in
19. If the current ratio stands at 2 : 1 an equal increase in current assets and current liabilities would_____ the current ratio.
20. 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?
21. Which one of the following branches of accounting primarily deals with processing and presenting of accounting data for internal use?
22. Financial statements are aflected by
23. Financial Management is a part of
24. AS - 6 deals with depreciation accounting and applies to all depreciable assets, except
25. Which is helpful in evaluation of financial efficiency of top management?
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