Accounting - Questions and Answers for Competitive Exams | GkSeries

Questions
13. In profit and loss account, if debit is more than the credit, the difference is
  • [A] net profit
  • [B] net loss
  • [C] gross profit
  • [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
  • [A] fixed assets
  • [B] current assets
  • [C] intangible assets
  • [D] none of the above

Answer: Option [A]

15. Which of the following assets have definite physical share or identity and existence?
  • [A] fictitious assets
  • [B] current assets
  • [C] tangible assets
  • [D] intangible assets

Answer: Option [C]

16. Outstanding expenses is a
  • [A] liability
  • [B] income
  • [C] asset
  • [D] none of the above

Answer: Option [A]

17. Interest on capital is a business can be defined as
  • [A] expense
  • [B] income
  • [C] liability
  • [D] asset

Answer: Option [A]

18. The ratios which reflect managerial efficiency in handling the assets is
  • [A] turnover ratios
  • [B] profitability ratios
  • [C] short term solvency ratio
  • [D] none of the above

Answer: Option [A]

19. Interest on capital is added with
  • [A] capital
  • [B] profit
  • [C] loss
  • [D] donation

Answer: Option [A]

20. The ratios which reveal the final result of the managerial policies and performance is
  • [A] turnover ratios
  • [B] profitability ratios
  • [C] long term solvency ratio
  • [D] none of the above

Answer: Option [B]

21. Which of the following matches with fixed assets ratio?
  • [A] short-term solvency ratio
  • [B] long-term solvency ratio
  • [C] profitability ratio
  • [D] turnover ratio

Answer: Option [B]

22. The ratio which determines the profitability from the shareholders point of view is
  • [A] return on investment
  • [B] gross profit ratio
  • [C] return on shareholders funds
  • [D] operating profit ratio

Answer: Option [C]

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23. The ratio which shows the proportion of profits retained in the business out of the current year profits is
  • [A] retained earnings ratio
  • [B] pay out ratio
  • [C] earnings per share
  • [D] None

Answer: Option [A]

24. How the dividend is related to the market value of shares?
  • [A] interest coverage ratio
  • [B] fixed dividend coverage ratio
  • [C] debt service coverage ratio
  • [D] dividend yield ratio

Answer: Option [D]