Accounting MCQs

Match the items of List-I with the items of List-II and choose the correct answer:

List-I	List-II
a. Provision for	1. Current assets taxation
b. Livestock	2. Unsecured loans
c. Sundry debtors	3. Fixed assets
d. Interest accrued on unsecured loans	4. Provisions

If,

Sundry Debtors	Rs. 15,000
Bill Receivable	Rs. 12,500
Cash at Bank	Rs. 17,500
Stock	Rs. 15,000
Profit	Rs. 20,000
Creditors	Rs. 25,000
Bill payable	Rs. 15,000
Sales	Rs. 1,00,000

The Acid Test Ratio is

Statement I The profit and loss account shows the financial results of the concernfor a period.
Statement II In profit and loss account, indirect expenses are charged against the gross profit.

A club received Rs. 1,00,000 as a donation for the year 1998. The amount of donation received was Rs. 15,000 on 31^st December 1998 and Rs. 20,000 on 31^st December 1997. The amount of income as donation for year 1998 is-

Consider the following statements-
Statement (A): Ratio analysis is an important tool to gain knowledge about the financial soundness of a company.
Reason (R): Ratio analysis is the only for an indicator to decide whether to invest or not in a company.
Give the correct answer:

Consider the following information:

Share capital	Rs. 2,00,000
Long term debts	Rs. 1,00,000
Current liabilites	Rs. 40,000
Fixed assets	Rs. 1,80,000
Current assets	Rs. 1,60,000

The Solvency ratio of the business is

Given,

Current Assets	Rs. 4,00,000
Current Liabilities	Rs. 1,60,000
Reserves & Surplus	Rs. 1,60,000
Proprietary Ratio (Fixed Assets/Proprietary Funds)	0.75

Fixed Assets will be

Which of the following is correct?
1. Unrealised dividend is an asset to the company
2. Dividend declared between two annual general meeting is called interim dividend
3. A company can distribute both interim and final dividend in the same financial year
Choose the correct answer:

Consider the particulars given below:
Sales = Rs. 60,000
Variable cost = Rs. 25,000
Fixed cost = Rs. 30,000
Based on these data, the operating leverage shall be: