Ratio analysis mcqs
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The document provides multiple-choice questions (MCQs) related to ratio analysis, useful for various academic exams such as class 12, BBA, MBA, and competitive exams in commerce. It includes definitions, limitations, categories, and tools related to ratio analysis, along with true/false statements about key financial metrics. Additionally, it offers a link for more than 100 MCQs on accounting ratios for further study.
Ratio analysis mcqs
- 1. Ratio Analysis MCQs Dynamic Tutorials and Services
- 2. Ratio Analysis MCQs are Useful for the following Exams: 1) Class 12 Exams (CBSE, AHSEC, State Boards) 2) BBA and MBA 3) CMA, ICAI and ICSI Exam 4) Dibrugarh University 5) Gauhati University 6) Mumbai and Pune University 7) M.Com Entrance Exams 8) All Competitive exams for Commerce stream students
- 3. Prepared By: Kumar Nirmal Prasad Address: Near Jivan Jyoti Hospital, Tinsukia College Road Tinsukia (Assam – 786125) Email id: kumarnirmalprasad@gmail.com Official website: https://www.dynamictutorialsandservices.org/ Contact Number: 9577097967
- 4. 1. Ratio analysis: a) Is an arithmetical relationship between two accounting variables? b) Provide quantitative relationship between two variables. c) It is one of the mean of financial analysis. d) All of the above. 2. Which of the following is not a limitation of ratio analysis? a) False and Misleading results. b) It ignores qualitative factors. c) It is affected by personal judgement of the analyst. d) It cannot be used in forecasting.
- 5. 3. Which of the following are tools of management accounting? a) Financial Planning b) Analysis of financial statements c) Historical cost accounting d) All of the above Ans: d) All of the above 4. Management accounting is suitable for: a) Small trading organisation b) Large industrial and trading organisation c) NPOs d) Co-operative societies Ans: b) large industrial and trading organisation
- 6. 3. Which of the following liabilities are taken into account for the quick ratio? a) Trade Creditors b) Outstanding expenses c) Bank overdraft d) All of the above 4. Accounting ratios are divided into four main categories. Which one of the following was not included in it? a) Liquidity ratios b) Solvency ratios c) Activity ratios d) Control ratios e) Profitability ratios
- 7. 5. Activity ratios are also known as: a) Performance ratios b) Turnover ratios c) Efficiency ratios d) All of the above 6. Activity ratios include: a) Stock turnover ratio b) Trade receivables turnover ratio c) Trade payables turnover ratio d) All of the above
- 8. Fill in the blanks: 1. Operating profit ratio = 1 – operating ratio. 2. Capital employed = Total of fixed assets + Working capital. 3. Net profit ratio is calculated by dividing net profit after interest and tax by net sales. 4. The best ratio to evaluate short-term liquidity is liquid ratio. 5. Solvency ratio is also known as leverage ratio.
- 9. State whether the following statements are true or false: 1. EPS is equal to net profit minus preference dividend divided by the number of equity shares issued. True 2. Proprietary ratio = Shareholder’s fund/Total assets. True 3. Current ratio is also known as acid test ratio. False 4. Liquidity ratio indicates the ability of the company to meet its short term obligations. True 5. Quick ratio is the relationship between quick assets and current liabilities. True 6. Debt equity ratio is solvency ratio. True
- 10. For more than 100 MCQS relating to Accounting Ratios Visit the following Link https://www.dynamictutorialsandservices.org/2020/11/ ratio-analysis-mcqs-accounting-ra.html