Accounting Procedures MCQs Quiz May 14, 2020May 14, 2020 by rashidjavedStart the MCQs Quiz below:Please enter your email: 1. The conflict of interest between stockholders and management is known as: Agency Problem Interest conflict Management conflict Agency cost 2. Which of the following ratios are particularly interesting to short term creditors? Liquidity Ratios Long-term Solvency Ratios Profitability Ratios Market Value Ratios 3. AST Company has a current ratio of 4:3. Current Liabilities reported by the company are $30,000. What would be the Net Working Capital for the company? $40,000 ($40,000) $10,000 ($10,000) 4. In which form of business, owners have limited liability? sole proprietorship partnership joint stock company none of the above 5. Which of the following item provides the important function of shielding part of income from taxes? Inventory Supplies Machinery Depreciation 6. The process of determining the present value of a payment or a stream of payments that is to be received in the future is known as: Discounting Compounding Factorization None of the given options 7. The process of determining the present value of a payment or a stream of payments that is to be received in the future is know as:Also Check: Final Accounts MCQs Discounting Compounding Factorization None of the given options 8. You need $10,000 to buy a new television. If you have $6,000 to invest at 5 percent compounded annually, how long will you have to wait to buy the television? 8.42 years 10.51 years 15.75 years 18.78 years 9. Which of the following equation is known as Cash Flow (CF) identity? CF from Assets = CF to Creditors – CF to Stockholder CF from Assets = CF to Stockholder – CF to Creditors CF to Stockholder = CF to Creditors + CF from Assets CF from Assets = CF to Creditors + CF to Stockholder 10. In which of the following type of annuity, cash flows occur at the beginning of each period? Ordinary annuity Annuity due Perpetuity None of the given options 11. Between the two identical bonds having different maturity periods, the price of the _____ bond will change less than that of _______ bond. long-term; short-term short-term; long-term lower-coupon; higher-coupon None of the given options 12. Which of the given areas is addressed by Business Finance? Financing Investing Managing day to day expenses All of these 13. which of the following form of business organization is least regulated?Also Check: Accounting Principles and Concepts MCQs Test Sole-proprietorship General partnership Limited partnership Corporation 14. Which of the following is measured by profit margin? Operating efficiency Asset use efficiency Financial policy Dividend policy 15. A company having a current ratio of 1 will have _______ net working capital. Positive Negative Zero None of the given options 16. Business Finance addresses which of the following? Capital budgeting Capital structure Working capital management All of the given options 17. In which type of business, all owners share in gains and losses and all have unlimited liability for all business debts? Sole-proprietorship General partnership Limited partnership Corporation 18. Which of the following is measured by retention ratio? Operating efficiency Asset use efficiency Financial Policy Dividend Policy 19. How many years will it take to pay off a $11,000 loan with a $1,241.08 annual payment and a 5% interest rate? 6 years 12 years 24 years 48 years 20. Which one of the following terms refers to the risk arises for bond owners from fluctuating interest rates? Fluctuation Risk Interest Rate Risk Real-time Risk Inflation Risk 21. Which of the following set of ratios relates the market price of the firm’s common stock to selected financial statement items?Also Check: Bills of Exchange MCQs quiz Liquidity Ratio Leverage Ratios Profitability Ratios Market Value Ratios 22. If a firm uses cash to purchases inventory, its quick ratio will: Increase Decrease Remain unaffected Become zero 23. Standard Corporation sold fully depreciated equipment for $5,000. This transaction will be reported on the cash flow statement as a(n): Operating activity Investing activity Financial activity None of the given options 24. Which of the following form of business organization is least regulated? Sole-proprietorship General Partnership Limited Partnership Corporation 25. A group of accounts with a common characteristic, such as all customer accounts is a …? General journal Subsidiary ledger Special journal General ledger Loading … Related posts:Business Communication MCQs Quiz Types of Partnership deed Important accounting ratios and formulas Accounting ratios and their classification Return on capital employed (ROCE) ratio
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