NET, IAS, State-SET (KSET, WBSET, MPSET, etc.), GATE, CUET, Olympiads etc.: Commerce MCQs (Practice_Test 3 of 99)
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- X Ltd. Has current ratio of 2: 1 and quick ratio of 1.5: 1: If its current liabilities are ₹ 80,000, then the value of-stock would be
- ₹ 1,60, 000
- ₹ 1,20, 000
- ₹ 40,000
- ₹ 80,000
- If earnings per share of a company is ₹ 5 and the price earning ratio of other similar companies is 4, then the market value of the share of the company would be
- ₹ 0.80
- ₹ 1.25
- ₹ 9
- ₹ 20
- If the cost of goods sold is ₹ 1,00, 000/-, the value of opening stock is ₹ 20,000/-and the value of closing stock is ₹ 80,000/-, then the stock turnover ratio would be
- 5 Times
- 4 Times
- 2 Times
- 1 Times
- Match List I with List II and select the correct answer:
Table Supporting: NET, IAS, State-SET (KSET, WBSET, MPSET, Etc.) , GATE, CUET, Olympiads Etc. : Commerce MCQs (Practice_Test 3 of 99) List-I List-II - Current Ratio
- Debt-Equity Ratio
- Net Profit Margin Ratio
- Interest Coverage Ratio
- Sufficiency of EBIT to cover interest charges interest charges
- Short-term solvency
- Exposure to financial risk
- Earnings left for shareholders
- A
- B
- C
- D
- 2
- 3
- 1
- 4
- 3
- 2
- 1
- 4
- 3
- 2
- 4
- 1
- 2
- 3
- 4
- 1
- Match list I with List II and select the correct answer:
Table Supporting: NET, IAS, State-SET (KSET, WBSET, MPSET, Etc.) , GATE, CUET, Olympiads Etc. : Commerce MCQs (Practice_Test 3 of 99) List-I List-II - Leverage Ratio
- Liquid Ratio
- Turn-over Ratio
- Profitability Ratio
- Short-term solvency
- Earning capacity
- Relationship of Debt and Equity
- Efficiency of Assets Management
- A
- B
- C
- D
- 2
- 1
- 4
- 3
- 3
- 2
- 1
- 4
- 4
- 3
- 1
- 2
- 3
- 1
- 4
- 2
- EPS is calculated as
- EBIT Equity shares
- EBIT-Preference Dividend Equity shares
- EAT Equity shares
- EAT-Preference Dividend
- Equity shares
- Consider the following information provided by XY. Ltd. Net profit before depreciation and taxes: ₹ 44,000 Depreciation for the year: ₹ 8,000 Goodwill written-off during the year: ₹ 10,000 Rate of tax: 50% The cash flow of Ltd. From operations will be
- ₹ 36,000
- ₹ 28,000
- ₹ 26,000
- ₹ 13,000
- If profit made during the year is ₹ 10,000; increase and decrease in the current assets is ₹ 5,000 and ₹ 4,000 respectively, then the cash from operation equals
- ₹ 9,000
- ₹ 10,000
- ₹ 11,000
- ₹ 19,000
- Consider the following statements: The important techniques of auditing are
- Test check and sampling.
- Flow charting of interrelated operations in the accounting system of an organization.
- Using Internal Control Questionnaire.
- Collecting information on price fluctuations from market-research organizations.
- Which of the above statements are correct?
- 1,2 and 3
- 1,2 and 4
- 2,3 and 4
- 1,3 and 4
- Match List I with List II and select the correct answer:
Table Supporting: NET, IAS, State-SET (KSET, WBSET, MPSET, Etc.) , GATE, CUET, Olympiads Etc. : Commerce MCQs (Practice_Test 3 of 99) List-I List-II - Auditor is a watch dog but not a blood hound
- An auditor should sign the balance sheet with open eyes. He should not depend on the officials of the company
- Capital profit cannot be divided as dividend unless all the assets have been revaluated and the profit has been actually realized
- An action for negligence can be brought against the auditor in tort by a person with whom he is not in a contractual relationship but to whom he owes duty
- Union Bank of Allahabad case
- Hedley Byrne and Co. Ltd. Vs. Hiller 4 partners case
- Kingston Cotton Mills case
- Fostar Vs. The Trinidad Lake Ashalte Co. Case
- A
- B
- C
- D
- 1
- 3
- 2
- 4
- 3
- 1
- 2
- 4
- 1
- 3
- 4
- 2
- 3
- 1
- 4
- 2
- Consider the following documents:
- Audit Report
- Audited Final Accounts
- Audit Note Book
- List of Lost Vouchers
- Audit Programme
- Which of the above documents re
- Auditor՚s working papers?
- 1,2 and 4
- 1,3 and 4
- 1,3, 4 and 5
- 2,3 4 and 5
- Auditor՚s working papers?
- Match List I with List II and select the correct answer
Table Supporting: NET, IAS, State-SET (KSET, WBSET, MPSET, Etc.) , GATE, CUET, Olympiads Etc. : Commerce MCQs (Practice_Test 3 of 99) List-I List-II - Interest on capital in construction works
- Management Audit
- Financial Audit
- Valuation in Balance Sheet
- Performance and Propriety
- Capital Expenditure
- Authorization of Expenditure
- Critical review by Management
- Entity Concept
- A
- B
- C
- D
- 2
- 4
- 5
- 3
- 4
- 1
- 2
- 5
- 2
- 1
- 3
- 5
- 4
- 2
- 3
- 1
- Which of the following is NOT correct about the management auditor?
- He appraises and reviews the past performance and future plans of the company
- He evaluates the performance of management and finds out whether they are efficient or not
- He works simultaneously with the statutory auditor verifying the financial state of affairs of the company
- He examines both financial and non financial records of the organization
- The Companies Act 1956 require the annual accounts to show a ‘true and fair view’ of the financial position of the company instead of ‘true and correct view’ because
- too much of dependence on arithmetical accuracy may lead to window dressing
- annual accounts should not only be made correctly but should also convey an overall fair view without any misleading impression
- all financial transactions cannot be correctly expressed in terms of money
- most of the stake holders do not have reasonable idea about accounting rules and regulations