a. c. d. Knowledge of customers€¦ · b. decreases working capital management efficiency c. d....

JNTU ONLINE EXAMINATIONS [Mid 2 - mefa]

1. Which of the following business organization has separate legal entity other than its owners? [01D01]

a.

b.

c.

d.

2.

3. Partnership business form is governed by the provision of [01D02]

a.

b.

c.

d.

Indian Companies Act 1872

Companies Act 1956

Indian Partnership Act 1932

COPRA

Sole proprietorship

Joint stock companies

Registered partnership

Unregistered partnership

8. What makes a business quite challenging? [01S02]

a.

b.

c.

d.

Profit http://jntuk.strikingsoon.com

Risk involved

Employees

Knowledge of customers

9. The simplest form of business organization is [01S03]

a.

b.

c.

d.

Sole proprietorship


Registered Partnership

Cooperative societies

10. The written agreement among partners for coming together is called [01S04]

a. Memorandum of understanding

b.

c.

a.

b.

c.

d.

Sole proprietorship



Private limited company

5. Among the form of business the one which has least risk to owner is [01M02]

b.

c.

d.


a. Sole proprietorship


Joint Stock Companies

6. Which of the following is a specific feature unique to partnership form of business [01M03]

a.

b.

c.

Profit

Agreement

Business

d. Customers

7. Which of the following feature is NOT characteristic feature of business? [01S01]

a.

b.

c.

d.

Transfer of ownership

Quick decision making

Welfare of customers

Welfare of customers

a.

b.

c.

d.

a.

b.

c.

d.

2

5

a.

b.

c.

d.

a.

b.

c.

2

4. The degree of freedom and flexibility for decision making is large in case of [01M01] d.

10

20

Agent

10

20

11. The serious limitation of sole trader form is [01S05]

It is too simple

12. The maximum number of partners permitted in case of Banking business is [02D01]

13. A partner who gives an impression that he is partner of the firm and liable for the claim is called [02D02]

Active partner

Partner by Estoppel

14. The maximum number or partners in case of non banking business permitted is [02M01]

Partnership deed

Partnership affidavit

Partnership Covenant

Limited capital

Primitive form of organization

Lack of professionalism

Nominal partner

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15. A partner who neither contributes capital nor takes part in the affairs of business is called [02M02]

a.

b.

c.

d.

Sleeping partner http://jntuk.strikingsoon.com

Figurehead partner

Nominal partner

Inactive partner

b.

c.

d.

SEBI

Company Law Board

Ministry of Commerce, GOI

22. Indian Railways is an example of [03D01]

a.

b.

Public Corporation

Government Company

Departmental Undertaking

Non profit society

16. An unregistered partnership firm cannot [02M03]

a.

b.

c.

d.

file suit in support of its claim

enter into 'future' contracts

raise loans from its creditors

admit sleeping partners

c.

d.

a.

17. Whenever any of the partners die [02S01]

a.

b.

c.

d.

the legal heir of the deceased becomes partner automatically and the partnership continues.

the partnership is dissolved

the partnership continues with others sharing the obligations and rights in proportion to their shares.

The partnership stands suspended

b.

c.

d.

18. A partner who contributes capital but does not take part in the affairs of the partnership is called [02S02]

a.

b.

c.

d.

Nominal partner

Inactive partner

Contributing partner

Sleeping partner

19. The procedure for dissolution of a partnership firm is specified in document called [02S03]

a.

b.

c.

d.

Termination procedure

Dissolution document

Partnership deed

Closure memo.

20. The partners of partnership firm have obligations to liabilities to third parties [02S04]

a.

b.

c.

d.

jointly and severally with unlimited liabilities

jointly with limited liabilities

severally with unlimited liabilities

jointly and severally with limited liabilities

21. The competent authority to issue permission to release prospectus is [02S05]

a. RBI

a.

b.

c.

d.

a.

b.

c.

d.

a.

b.

c.

d.

a.

b.

c.

10

20

50

Unlimited

Prospectus

51%

67%

100%

75%

Prospectus

24. Maximum number of members in a private limited company is [03M01]

25. The document that deals with rules and regulation governing the internal conduct of the company is called [03M02]

26. A government company is one in which ---- percent or more of the share is held by state or central government [03M03]

27. The charter of the company is called [03S01]

Memorandum of Association

14

8

6

12

Articles of Association

Memorandum of Association

Standing orders

Articles of Association

23. The number of clauses describing the contents of memorandum of Association are [03D02]



28. The minimum number of members required to form public limited company is [03S02]

a.

b.

c.

d.

2

7

50

10

b.

c.

d.

Public Corporation

Government Company

Central Departmental undertaking

35. The business organization where the right to transfer the share is restricted is called [04M02]

a.

b.

c.

d.

Public limited company

Cooperative society


Multinational company

29. The minimum number of members required to form private limited company is [03S03]

a.

b.

c.

d.

2

7

50

10 a.

30. Prospectus is issued by [03S04]

a.

b.

c.

d.



Cooperative society

Public limited company, Private limited company and Cooperative society

b.

c.

31. National Thermal Power Corporation (NTPC) is an example of [03S05]

a.

b.

c.

Public Corporation

Government Company


d. public Limited Company

32. A company, which controls the composition of board of directors of another company, is called [04D01]

a.

b.

c.

d.

Holding Company

Subsidiary company

Unlimited Company

Limited Company

33. The Indian partnership Act was enacted in [04D02]

a.

b.

c.

d.

1932

1942

1952

1962 http://jntuk.strikingsoon.com

34. Among the public enterprises the degree of autonomy is highest in [04M01]

a. Departmental undertaking

a.

b.

c.

d.

a.

b.

c.

d.

a.

b.

c.

d.

a.

b.

c.

d.

37. Business entity which comes into existence by statue of parliament or state legislature is called [04S01]


38. Government business entity registered under Companies Act 1956 is called [04S02]

Department undertaking

Public corporation


Government Company

39. A company, which controls the composition of board of directors of another company, is called [04S03]

Holding Company

Subsidiary company

Unlimited Company

Limited Company

40. The voting rights in a private or public limited company is based [04S04]

on equality principle

the proportion to the shares held

on the social standing of share holder

transferability of shares

unlimited liability

common seal

winding up

Public corporation

Government Company


36. Which of the following is not a feature of the company? [04M03]



41. In cooperative society the business is governed on the principle of [04S05]

a.

b.

c.

d.

one man one vote

proportion of share held

standing of member

contribution of member.

c.

d.

Trust

Standing Order

48. One of the examples of successful product produced by cooperative society is [05S02]

a.

b.

c.

d.

Nirma

Baidyanath Chavanprash

Amul Butter

Milkmaid

42. Cooperative Societies Act was enacted in [05D01]

a.

b.

c.

d.

1932

1904

1914

1945 a.

43. Which of the following can be considered as the most disadvantage of departmental undertaking? [05D02]

a.

b.

c.

d.

Shares not traded in public

Shares not freely transferable

Red tapism and bureaucracy

Big size

b.

c.

d.

44. The minimum paid up capital to form a public company is [05M01]

a.

b.

c.

d.

Rs. 8,00,000

Rs. 5,00,000

Rs. 4,00,000

Rs.10,00,000

45. Which of the shares can be freely transferred? [05M02]

a.

b.

c.

d.

Departmental undertaking

Cooperative society



46. A company whose controlling shares are held by another is called [05M03]

a.

b.

c.

d.

Parent company

Holding company

Subsidiary company

Supporting company

47. Partnership is created by [05S01]

a.

b.

Contract

Solicitation

a.

b.

c.

d.

a.

b.

c.

d.

a.

b.

c.

d.

a.

b.

c.

d.

50. Which of the organizations is formed for the stated objective of providing employment besides other objectives? [05S04]

Public enterprises

Cooperative Societies

51. When total of current liabilities are more than current assets it is a situation where we have necessarily [06D01]

negative working capital

breakdown of business

liquidation of business

long operating cycle

52. Higher the length of operating cycle, [06D02]

more robust is the operation

less efficient is the operation

more efficient is the operation

less requirement is the working capital

53. In Economics capital is considered as [06M01]

one of the factors of production

source of economic problem

one of the factors of consumption

one of the factors of distribution



Cooperative society



Private Limited company

49. Whose shares can be listed in Stock Exchange? [05S03]



54. The total of stocks of raw materials , work-in- progress, finished goods, stores and spare parts, monetary assets, tender deposits, deposits with customs, excise and port authorities including funds provided by trade creditors is known as [06M02]

a.

b.

c.

d.

Capital

Gross working capital

Net working capital

Business assets

60. Slow moving finished goods and raw material inventory causes, [06S05]

a.

b.

c.

d.

decrease in length of operating cycle

increase in length of operating cycle

decrease in working capital

increase in efficiency of operation

61. Debentures, equity and term loans are sources of funds for [07D01]

a.

b.

c.

fixed and long term assets

working capital

current assets

55. The differences between total current assets and current liabilities is [06M03]

a.

b.

c.

d.

Net working capital

Gross working capital

Fixed working capital

Trading deficit

d.

62. Cash credit, bill discounting and sundry creditors are sources of funds for [07D02]

56. The difference between total of assets and liabilities of a business enterprise is [06S01]

a.

b.

c.

d.

profit

loss

capital

liquidity

57. The problem for growth of underdeveloped countries is essentially the problem of [06S02]

a.

b.

c.

d.

lack of capital

lack of labour

lack of land

lack of will

a.

b.

58. That portion of the capital which is invested in acquiring long term assets is called [06S03]

Durable capital

Fixed capital

c. working capital

Reserves d.

59. The portion of capital needed for running the business on day to day basis is called [06S04]

a.

b.

c.

d.

Liquid capital

Liquidity

Working capital

Quick assets

d.

a.

b.

c.

d.

a.

b.

c.

d.

a.

b.

c.

d.

a.

b.

c.

a.

63. More trade creditors with increase in credit period would, [07M01]

decrease working capital requirement

increase the working capital requirement

increases length of operation cycle

decreases working capital management efficiency

64. Goodwill and patents are example of [07M02]

current assets

working capital

intangible long term assets

tangible long term liabilities

65. Tandon and Chore committee recommendation provide guidelines on bank credit for [07M03]

long term financing

working capital financing

customer financing

fixed asset financing

66. Where product obsolescence and technology obsolescence are fast the most useful criteria for capital budgeting is [07M04]

A. pay back period

short term investments

fixed capital

long term assets

current assets

investment in machinery



b.

c.

d.

accounting rate of return

NPV

IRR

73. Where does one buy and sell the shares of the existing companies? [08M01]

a.

b.

Money market

Capital market

Secondary market

Bond market

67. Shorter collection period would, [07S01]

a.

b.

c.

d.

increase the working capital requirement

reduce the working capital requirement

increases length of operating cycle

increases sales

c.

d.

74. Which of the following is not a current asset? [08M02]

a. tender deposit

Cash deposited with customs for duty

prepaid expenses c.

a.

b.

c.

d.

working capital

capital

long term liabilities

current liabilities

d.

75. When the rate of return is more than the cost of capital then the project should be [08M03]

69. The most liquid form of current assets is [07S03]

a.

b.

c.

d.

marketable inventory

cash and bank balance

finished goods

tender deposit

70. Equity and preference share capital major sources of financing [07S04]

a.

b.

c.

d.

fixed capital

working capital

current assets

day to day operational need

71. The compound rate of return earned on initial investment for the life of the project is measured by [08D01]

a.

b.

c.

pay back period method

profitability index method

NPV

d. IRR

72. Discounting factor in NPV must be [08D02]

a.

b.

c.

d.

based on cost of capital

10%

decided only by Finance Manager

in the range of 8% to 12%

d.

a.

b.

c.

d.

a.

b.

c.

d.

a.

b.

c.

d.

a.

b.

b. accepted

c.

Term loan

a.

76. Which of the following is not a form of long- term finance? [08S01]

77. Which of the following is a current liability? [08S02]

Bills receivables

Bills payable

prepaid expenses

share capital

78. The flow of money in the business is called [08S03]

wealth cycle

business cycle

economic cycle

working capital cycle

79. Capital budgeting is done for [08S04]

working capital

project financing and long term capital planning

rejected

kept in abeyance

kept out of consideration

Preference shares

Debentures

Cash credit

68. Debentures, term loans and mortgages are components of [07S02]

b.

Advance paid by customer along with order



d. estimating the profit 86. Present value of revenue stream divided by investment is [09M04]

a.

b.

c.

d.

NPV

IRR

Profitability Index

Cost of capital

80. The diminution or reduction in the value of the asset due to wear and tear is called [08S05]

a.

b.

c.

d.

depreciation

dissipation http://jntuk.strikingsoon.com

liquidation

attrition 87. The process of evaluating the relative worth of long term investment proposals is called [09S01]

a.

b.

c.

discounting

capital budgeting

depreciating

81. In order to make capital budgeting a purposeful exercise the most important thing is [09D01]

a.

b.

c.

d.

realistic estimation of revenue

calculation of payback period

calculation of NPV

calculation of profitability Index

d.

88. The period within which the original investment is recovered is called [09S02]

b.

c.

d.

Payback period

Earning per share

Profitability Index

83. The difference between the present value of future cash inflows to the original investment is [09M01]

a.

b.

c.

d.

NPV

profitability index

discounted cash value

cost of capital

84. Internal rate of return (IRR) is the rate at which the difference between the present value of cash inflows and the original cost is [09M02]

a.

b.

c.

equal to zero

equal to one

greater than zero

greater than one. d.

85. Average profit after taxes over the life of the project divided by average book investment during the life of the project after depreciation is [09M03]

a.

b.

c.

d.

accounting rate of return

Payback period

Earning per share

Profitability Index

d.

a.

b.

c.

d.

a.

b.

c.

d.

a.

b.

c.

d.

a. accounting rate of return

b.

c.

NPV

IRR

ARR

82. Average profit after taxes over the life of the project divided by average book investment during the life of the project after depreciation is [09D02]

a.

89. For the profitable projects the profitability index should be [09S03]

greater than zero

greater than one

equal to one

less than one

90. Which of the following method does not use the concept of Present value of future revenue? [09S04]

91. Which of the following techniques of capital budgeting uses present value of future earnings? [09S05]

92. Liquidity criteria in investment appraisal is emphasized in [10D01]

valuation of firm

Pay back period

Operating cycle length

turnover period

collection period

Accounting rate of return

Profitability Index

Payback period

Profitability index

Decision tree



b.

c.

d.

NPV

Payback period method

profitability Index

99. Capital budgeting decision are crucial because they are [10S02]

a.

b.

uncommon

redeemable

immeasurable

irreversible

93. The post pay-back cash flows are [10D02]

a.

b.

c.

d.

ignored in pay back period calculation

included in pay back calculation

given weighted preference in calculation

is subtracted from pre pay back period cash inflows

c.

d.

100.Replacement of worn out machine or equipment is essentially [10S03]

a. recurring expenditure decision

working capital decision

capital budgeting decision c.

a.

b.

c.

d.

ARR

NPV

IRR

Profitability index

d.

101.

a.

95. Projects that cannot be taken up simultaneously with the other are called [10M02]

a.

b.

c.

d.

mutually exclusive

complementary

supplementary

derived projects

96. Which of the following methods is used in capital budgeting decisions in cases where the book value less scrap is equally adjusted over the life of the asset? [10M03]

a.

b.

c.

d.

Written down value method

Straight line method

Replenishment method

annuity method

97. Which of the following is determined on after tax basis for capital budgeting? [10M04]

a. cash inflows

b.

c.

cash outflows

depreciation

scrap value of asset d.

98. The present value of future cash inflows over and above cost of investment is [10S01]

a.

b.

c.

d.

Profit

NPV

Cost of capital 105.All transaction recorded according to records do not necessarily mean cash flow. All transactions Discounting factor

d.

a.

b.

c.

d.

a.

b.

c.

d.

a.

b.

c.

d.

b.

c.

multiplied

102.Government transacts the payments into the government's treasury are mainly dealt on [11D01]

Single entry book

Double entry book

Real accounts

nominal accounts

103.Capital i.e. owner's share of assets of the firm is always what is left out of assets after paying outsiders and a transaction must affect asset or liability or capital is based on [11D02]

Dual aspect concept

Money measurement concept

Realisation concept

Business entity concept

104.The concept that only those transactions that are expressed in monetary terms are recorded is called [11M01]

Cost concept


Realisation concept

conservatism

compounded annually

94. Which of the following is not modern method of investment appraisal? [10M01]

b.

routine replacement maintenance decision

Discounting rates are [10S04]

calculated on simple rate basis annually

divided to arrive at the present value



event though not yet settled in cash must be taken into account is [11M02]

a.

b.

c.

d.

Going concern concept

Accrual concept

Cost concept


representation of firm's financial performance is called [11S06]

a.

b.

c.

d.

Reliability

Relevance

Consistency

comparability

106.The concept that the accountant treats the business as distinct from person who owns it is called [11S01]

a.

b.

c.

d.


Dual aspect concept


Consistency

112.An accounting principle that requires recognition of revenue at the time of it is earned called [12D01]

a.

b.

c.

Prudence principle

Realisation principle

Matching principle

Cost principle d.

107.The concept that for every credit there is debit is borne out of [11S02]

a.

b.

c.

d.

Cost concept http://jntuk.strikingsoon.com


Double entry system

consistency

108.The assumption that the business will exist for a long time and transaction recorded on that basis is [11S03]

a.

b.

c.

d.



Accrual concept

Cost concept

109.The accounting is based on historical cost and not market value is [11S04]

b.

c.

a. Consistency concept

Conservatism concept

Cost concept

d. Money measurement concept

At any time in business [11S05] 110.

a.

b.

c.

d.

Assets = Liabilities + Capital

Capital - Liabilities = Assets

Asset + Capital = Liabilities

Assets + Liabilities = Capital

b.

c.

d.

a.

b.

c.

d.

a.

b.

c.

d.

116.

a.

b.

c. 111.The concept that the accounting describes information that is verifiable and faithful

a. profit

revenue

gain

equity

Accrual

Provision

Reserve

Deferral

posting

tallying

a ledger a/c

Journal

113.The residual interest in the assets of the enterprise after deducting all its liabilities is called [12D02]

114.The recognition of expense that has not been paid or a revenue that has not been received is called [12M01]

115.The sequence of accounting processes beginning with the analysis and the journalizing of transaction and ending with the post closing of trial balance is called [12M02]

accounting cycle

adjusting entries

Cash Book is [12M03]

served the dual purpose of Journal and ledger account



117.

a.

b.

c.

d.

The two parts of owner's equity are [12S01]

Assets and Liabilities

Net income and Common Stock

Contributed capital and retained earnings

Revenue and expenses

d.

124.

a.

b.

c.

d.

Profit & Loss A/c and Balance Sheet

Contra entries are found only in [13M01]

personal accounts

Cost accounts

Cash book

Balance sheet 118.Which financial statement is based on the accounting equation? [12S02]

a.

b.

c.

d.

Income statement

the Balance sheet

the statement of cash flows

Statement of changes in shareholder's equity

125.The source of enterprise resources obtained from non-owners is [13M02]

a.

b.

c.

liabilities

assets

119.A chronological record of transaction entered into by a business is called [12S03]

a.

b.

c.

d.

Account

ledger

Journal

posting

d.

126.

a.

b.

c.

d.

Real accounts

Nominal accounts

Personal accounts

Trading a/c

120.Debit what comes in and credit what goes out is the rule for [12S04]

121.Debit all expenses and losses credit all gains and profits is the rule for [12S05]

d.

a.

b.

c.

d.

128.

a.

b.

c.

d.

a.

b.

c.

d.

b.

c.

d.

Nominal accounts

personal accounts

Furniture a/c

a. Real accounts

122.Which of the following is an essential characteristic of an asset? [13D01]

a. An asset is obtained at a cost

b.

c.

d.

123.

a.

b.

c.

An asset provides future benefit

An asset is tangible

Asset is immeasurable

Financial statements are [13D02]

Cash a/c and creditors ledger

Real and Nominal A/cs

Personal and Impersonal A/cs

b.

c.

a.

127.Debit the receiver and credit the giver is the rule for [13S01]

real accounts

nominal accounts

personal accounts

stationary account

Impersonal accounts are [13S02]

Profit and Loss A/cs

Trading A/cs

Real accounts and Nominal accounts

Balance Sheet

129.The itemized list of all ledger balances, cash balances at the close of the accounting year is used to prepare [13S03]

Trial Balance

Trading A/c

Profit and Loss A/c

Balance sheet

130.The statement of the sources and the ways in which these resources are invested at a specified date is shown in [13S04] a. Profit and Loss A/c

capital

profit

Real account

Nominal account

Personal account

Trading account

Cash in hand is classified into [13M03]



b.

c.

d.

Trading A/c

Balance Sheet

Trial balance

c.

d.

Revenue expenditure

Cost of goods

131.The expenses yet to be paid are called [13S05]

a.

b.

c.

d.

accrued expenses

Normal expenses

Arrear expenses

Accumulated expenses

137.Amount that are received in the ordinary course of business is called [14S01]

a.

b.

c.

d.

net profit

revenue receipts

capital receipts

gross profit

a.

a.

b.

c.

d.

monetary current asset

non monetary current asset

fixed asset

long term asset

b.

c.

d.

a.

b.

c.

d.

Capital expenditure

Revenue expenditure

Deferred revenue expenditure

preliminary expenses

a.

b.

c.

d.

Posting to wrong side of a/c

Compensating error

134.Which of the following errors are not disclosed in trial balance? [14M01]

Error in totaling account wrongly

135.Which of the following error can be disclosed? [14M02]

a. Errors of principle

Compensating errors

Posting to wrong side of account

Errors of complete omission of transaction

Posting in one a/c from the journal omitting to post another a/c

b.

c.

d.

136.Expenditure incurred to maintain the earning capacity of the business in the normal course for the current period is [14M03]

a.

b.

Deferred revenue expenditure

Capital expenditurec. Current cost and realizable value

a.

b.

c.

d.

a.

b.

c.

d.

a.

b.

c.

d.

a.

b. c. Current Cost & Realizable Value

133.That portion of expenditure that remains uncharged to Profit & Loss a/c for a given period is [14D02] P & L a/c

Bank a/c

139.Net profit or loss for the end of a given accounting period is shown in [14S03]

140.When the company pays dividend to shareholders which of the following is affected? [14S04]

Income statement

Balance sheet

Trading a/c

Profit and Loss a/c

141.What capital maintenance concept is applied to report net profit? [14S05]

Physical capital

Financial capital measured in nominal monetary units

Financial capital in units of constant purchasing power

intangible capital

142.Which of the following measurement bases are consistent with the fair value concept? [15D01]

Historical cost and present value

Historical cost, current cost and realizable value

Profit and Loss A/cs

Capital A/c

Trading A/c

Cash a/c

Trading a/c

Cash a/c http://jntuk.Strikingsoon.com

132.Receivable that is amount due from a customer is [14D01]

138.The gross profit or loss for the end of a given accounting period is shown in [14S02]



d. Historical cost and realizable value b.

c.

d.

bad debt a/c

personal a/c

sales a/c 143.Withdrawal of goods from business by the proprietor should be credited to [15D02]

a.

b.

c.

d.

144.

a.

b.

c.

d.

Proprietor account

Cash account

Bank account

Goods account

Patents account is a [15M01]

Real a/c

150.Which of the following is called return inwards? [15S04]

a.

b.

c.

d.

purchases

purchase return

sales return

free samples sent by suppliers

Nominal a/c

Fictitious a/c a.

b.

145.The accounting information as provided in company annual report is meant for [15M02]

a.

b.

c.

d.

employees

Accounting professionals

Shareholders

Board of Directors

c.

146.The ascertaining and controlling of the cost of a product or services is principally achieved through [15M03]

a.

b.

c.

d.

147.

a.

b.

c.

d.

Financial accounting

Cost accounting

Zero Based budgeting

Management Accounting

Air conditioning the building is [15S01]

capital expenditure

capital receipt

revenue expenditure

deferred revenue expenditure

148.Salary paid in cash to Mr. Joseph, General Manager Works is credited to [15S02]

a.

b.

c.

d.

GM's a/c

Mr.Joseph's a/c

Salary a/c

Cash a/c

149.When debt is declared bad, which of the following account is debited? [15S03]

a. debtor's a/c

a.

b.

c.

d.

a.

b.

c.

d.

a.

b.

c.

d.

a.

b.

liquidity

solvency

leverage

quick ratio

quick ratio

d.

152.A company's return on investment indicates its [16D01]

153.The standard value of 1:1 is specified for [16M01]

current ratio

154.The overall ability of the business to meet its financial commitments in the long run with equity as percent of total liability is indicated by [16M02]

average collection period

solvency ratio

155.The proportion of owners fund to the total fund deployed in the business is indicated by [16M03]

solvency ratio

debt equity ratio

Sales book

Cash book

Purchase book

Ledger

profitability

debtors turnover ratio

inventory turn over ratio

profitability ratio

Personal a/c 151.Name of the main book of accounts in which all accounts are kept is [15S05]



d.

156.

a.

b.

c.

d.

capital gearing ratio

Current ratio is basically [16S01]

liquidity ratio

activity ratio

solvency ratio

profitability ratio

b.

c.

d.

gross profit ratio

ROI

assets profitability

163.Net profit after taxes divided by number of shares outstanding gives [17D02]

a.

b.

net profit ratio

ROI

EPS

solvency ratio

157.The proportion of current asset to cover current liability is calculated using [16S02]

a.

b.

c.

d.

quick ratio

c.

d.

current ratio

activity ratio a.

b.

158.When closing stock and prepaid expenses are subtracted from current assets we get [16S03]

a.

b.

c.

d.

159.

a.

b.

c.

d.

current liability

quick assets

net working capital

sundry debtors

c.

Capital gearing ratio is [16S04]

debt equity ratio

earning per share


return on investment

a.

b.

c.

d.

working capital cycle length

160.The number of times the working capital has circulated itself is given by [16S05]


working capital turn over ratio

fixed asset turn over ratio

161.The velocity of the fixed assets is measured by [16S06]

a.

b.

c.

d.

quick ratio

net profitability ratio

return on investment


162.The ratio of operating profit by capital employed is given by [17D01]

a. net profit ratio 168.The number of days in a year divided by collection period in days is [17S01]

a.

b.

c.

d.

a.

b.

c.

d.

2

5

a.

b.

c.

d.

ROI

2.5

1.5

d.

165.The surplus of sales over the cost of production ( in manufacturing) and service charges ( in servicing industries) is measured by [17M02]

166.Current assets of XYZ company are Rs. 1,20,000 and total assets are Rs. 6,00,000. Current liabilities are Rs. 80,000 and total liabilities are Rs. 3,00,000. What is the current ratio? [17M03]

167.The set of ratios that measure the company's ability to pay its current bills and operating cost are known by [17M04]

solvency ratios

liquidity ratios

profitability ratios

market indicators

proprietary ratio

interest coverage


acid test ratio

gross profit ratio

assets profitability

solvency ratio

acid test ratio 164.The efficiency of inventory management is measured by [17M01]



a.

b.

c.

d.



working capital turn over ratio

debtor turn over ratio

survive over a long period of time is known as [18M01]

a.

b.

c.

liquidity ratios


market indicators

solvency ratios 169.The efficiency of collection is measured by [17S02]

a.

b.

c.

d.

collection period

inventory turnover ratio

gearing ratio

quick ratio

d.

175.The set of ratios that measure the operating or income performance of a company is know as [18M02]

a.

b.


liquidity ratios

170.Suppose a firm had an inventory turn over ratio of 20. Taking the year to consist of 360 days, how many days on an average does an item remain in inventory? [17S03]

a.

b.

c.

d.

15 days

18 days

20 days

12 days

c.

d.

171.Jain and sons have their sales Rs. 20,00,000 cost of sold Rs.12,00,000 and average inventory Rs. 4,00,000. What was the inventory turnover ratio for the period? [17S04]

a.

b.

c.

d.

3

4

5

0.33

172.A high inventory turn over ratio indicates that [18D01]

b.

c.

d.

a. inventory is selling rapidly

inventory is not moving quickly

the company is ordering too much inventory

the company is selling inventory at high price

173.Which ratio is meaningless in a start up company that has not yet earned profit? [18D02]

a.

b.

c.

d.

P/E ratio

Gross profit ratio


Current ratio

174.The set of ratios that measure the company's ability to meet its long- term obligation and to

d. Rs. 47.50 per share

b.

c.

d.

a.

b.

c.

d.

a.

b.

c.

d.

a.

b.

c.

a.

2:1

1:1

1:2

0.5:2

176.The set of ratios that relate the current market price of the companys stock to earning is [18S01]


solvency ratios

177.The level of different activities in business is measured using [18S02]


turnover ratios

market indicators

solvency ratios

178.The general norm for current ratio is [18S03]

179.Reddy & Reddy C0 reported a P/E ratio of 50 on the last day of the financial year. If the company reported earning of Rs. 2.50 per share, what was the price at which share of the company being traded at that time? [18S04]

Rs. 20 per share

Rs. 125 per share

Rs. 50 per share

solvency ratios

market indicators

activity ratios

market indicators



180.On Mar 31, Naidu caterers reported total current assets of Rs. 45,000 total assets of Rs. 2,00,000 total current liabilities of Rs. 42,000 and total liabilities of Rs.80,000. How much net working capital did Naidu caterers have at that time? [18S05]

a.

b.

c.

d.

Rs. 87,000

Rs.2,00,000

Rs.3000

Rs. 1,23,000

d. Overhead ratio

186.If the current market price of share whose face value at Rs. 10 is Rs.150, and if the company declares dividend of 45% then the dividend yield is [19M03]

a.

b.

c.

d.

3 per annum

45 per annum

30 per annum

15 per annum

a.

b.

c.

d.

the return on equity is 1

the debt to equity ratio is 1

the return on assets ratio is 0.5

the firm has too much debt

a.

b.

c.

a.

b.

c.

d.

ROI

ROCE

ROE

EPS

183.The net profits available to equity shareholders to the amount invested by them is [19D02]

a.

b.

c.

d.

ROI http://jntuk.Strikingsoon.com ROCE

ROE

EPS

184.Financial institution insist on minimum debt to equity ratio of [19M01]

a. 2:1 http://jntuk.Strikingsoon.com

1:2 b.

c. 1.5:2

d. 2: 0.5

185.The ratio between cost of goods sold plus operating expenses and net sales is known as [19M02]

a.

b.

c.

Gross profit ratio

Net profit ratio

Operating ratio

a.

b.

c.

d.

a.

b.

c.

d.

a.

b.

c.

d.

191.

a.

182.Adjusted net profits by capital employed gives [19D01]

b. Solvency ratio

. 92%

450

3000

150

2000

EPS

P/E ratio

188.The price/earning ratio of a company is 30. The company earned Rs. 15 per share for the year ended. As on that what was the price of share in rupees? [19S02]

189.The ratio of nominal or face value of the share by market price of the share expressed as percent of dividend per annum is [19S03]

190.The ratio between net profit before interest and taxes to fixed interest charges is known as [19S04]

Debt equity ratio

Net profit ratio

Gross profit ratio

Interest coverage ratio

Dividend yield is basically [19S05]

Profitability ratio

8

Rs. 4,00,000

Rs.46,00,000

Dividend yield

earning power

181.If a firm has Rs. 1,00,000 debt and Rs. 1,00,000 equity then [18S06]

187.If operating ratio of a company is 92% with a sale of Rs.50,00,000 the profitability per cent ratio is [19S01]



c.

d.

Activity ratio

Liquidity ratio

198.Inefficient collection of debtors is revealed by [20S02]

a. Average payment period

Debtors turnover ratio

Debt to equity ratio

Debt coverage ratio

Liquidity crisis is revealed by [20S03]

interest coverage ratio net profit ratio

current ratio and quick ratio

solvency ratio

192.Low capacity utilization is revealed by [20D01]

a.

b.

c.

d.

quick ratio


debt equity ratio

collection period

b.

c.

d.

199.

a. b.

c.

d.

a.

b.

c.

d.

194.

a.

b.

c.

d.

Average payment period

Creditors turnover ratio

Debt coverage ratio

Debt equity ratio

Debt equity ratio is [20M01]

Liquidity ratio

Solvency ratio

Profitability ratio

Activity ratio

200.Falling demand for the product in the marke is revealed by [20S04]

a. Gross profit ratio

Acid test ratio

201.

195.Turn over ratio helps management in [20M02]

a.

b.

c.

d.

managing resources

managing debt http://jntuk.Strikingsoon.com

evaluating performance

a.

b.

c.

d.

197.Ratio of net sales to net working capital is [20S01]

a.

b.

c.

d.

Working capital turnover ratio

Profitability ratio

Liquidity ratio

Operating ratio

196.Borrowing for short term and investing in long- term assets is revealed by [20M03]

Current ratio and Quick ratio

quick ratio and Collection period

Current ratio and Fixed Asset ratio

Debt Equity ratio and Turnover ratio

managing profit proceeds

c.

d.

a.

b.

c.

d.

b.

Current ratio

Finished goods turnover ratio

current ratio

debt / equity ratio

net profit ratio

gross profit ratio

193.Inability to pay dues to financial institution is revealed by [20D02]

Long term solvency is indicated by [20S05]



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