Accounting - Questions and Answers for Competitive Exams | GkSeries

13. In profit and loss account, if debit is more than the credit, the difference is

1. [A] net profit
2. [B] net loss
3. [C] gross profit
4. [D] none of the above

Answer: Option [A]

14. Assets which are acquired and held permanently and used in the business with the objective of making profits is known as

1. [A] fixed assets
2. [B] current assets
3. [C] intangible assets
4. [D] none of the above

Answer: Option [A]

15. Which of the following assets have definite physical share or identity and existence?

1. [A] fictitious assets
2. [B] current assets
3. [C] tangible assets
4. [D] intangible assets

Answer: Option [C]

16. Outstanding expenses is a

1. [A] liability
2. [B] income
3. [C] asset
4. [D] none of the above

Answer: Option [A]

17. Interest on capital is a business can be defined as

1. [A] expense
2. [B] income
3. [C] liability
4. [D] asset

Answer: Option [A]

18. The ratios which reflect managerial efficiency in handling the assets is

1. [A] turnover ratios
2. [B] profitability ratios
3. [C] short term solvency ratio
4. [D] none of the above

Answer: Option [A]

19. Interest on capital is added with

1. [A] capital
2. [B] profit
3. [C] loss
4. [D] donation

Answer: Option [A]

20. The ratios which reveal the final result of the managerial policies and performance is

1. [A] turnover ratios
2. [B] profitability ratios
3. [C] long term solvency ratio
4. [D] none of the above

Answer: Option [B]

21. Which of the following matches with fixed assets ratio?

1. [A] short-term solvency ratio
2. [B] long-term solvency ratio
3. [C] profitability ratio
4. [D] turnover ratio

Answer: Option [B]

22. The ratio which determines the profitability from the shareholders point of view is

1. [A] return on investment
2. [B] gross profit ratio
3. [C] return on shareholders funds
4. [D] operating profit ratio

Answer: Option [C]

23. The ratio which shows the proportion of profits retained in the business out of the current year profits is

1. [A] retained earnings ratio
2. [B] pay out ratio
3. [C] earnings per share
4. [D] None

Answer: Option [A]

24. How the dividend is related to the market value of shares?

1. [A] interest coverage ratio
2. [B] fixed dividend coverage ratio
3. [C] debt service coverage ratio
4. [D] dividend yield ratio

Answer: Option [D]