51
If the current ratio is 2 : 1 and working capital is Rs. 60,000. What is the value of the current assets?
A)
Rs. 60,000
B)
Rs. 1,00,000
C)
Rs. 1,20,000
D)
Rs. 1,80,000
Answer & Solution
Answer: Option
C
52
The appropriate ratio for indicating liquidity crisis is
A)
Operating ratio
B)
Sales turnover ratio
C)
Current ratio
D)
Acid test ratio
Answer & Solution
Answer: Option
D
53
Cost plus contract is useful for-
A)
Contractor
B)
Contractee
C)
Both A and B
D)
None of these
Answer & Solution
Answer: Option
C
54
The improvement of the profit-volume ratio can be done by
A)
Increasing selling price
B)
Altering sales mixture
C)
Reducing the variable cost
D)
All of the above
Answer & Solution
Answer: Option
D
55
The tier clause in contracts provides protection against possible changes to which of the following?
A)
The value of materials, labour and other expenses
B)
Contract value
C)
Percentage of profit
D)
None of the above
Answer & Solution
Answer: Option
A
56
The preparation of a consolidated statement of accounts as per AS-21 is
A)
Optional
B)
Mandatory for private limited companies
C)
Mandatory for listed companies
D)
Mandatory for all companies
Answer & Solution
Answer: Option
C
57
The margin of safety is calculated by using
A)
$$\frac{{{\text{Profit}}}}{{\frac{{\text{P}}}{{\text{V}}}{\text{ratio}}}}$$
B)
$$\frac{{{\text{Fixed Cost}}}}{{{\text{Contribution}}}}$$
C)
$$\frac{{{\text{Break Even Sales}}}}{{{\text{Sales}}}}$$
D)
$$\frac{{{\text{Profit}}}}{{{\text{Sales}}}}$$
Answer & Solution
Answer: Option
A
58
Which of the following ratios are taken into consideration by a banker before sanctioning the loan?
A)
Proprietors ratio
B)
Stock-turnover ratio
C)
Debt-equity ratio
D)
All of the above
Answer & Solution
Answer: Option
C
59
Under marginal costing, only . . . . . . . . costs are charged to products.
A)
fixed
B)
variable
C)
Both A and B
D)
None of these
Answer & Solution
Answer: Option
B
60
. . . . . . . . represents that quantity of material which is normally ordered when a particular material reaches re-ordering level.
A)
Maximum level
B)
Re-order level
C)
Minimum level
D)
Re-order quantity
Answer & Solution
Answer: Option
D
