NET, IAS, State-SET (KSET, WBSET, MPSET, etc.), GATE, CUET, Olympiads etc.: Commerce MCQs (Practice_Test 34 of 99)
Get unlimited access to the best preparation resource for competitive exams : get questions, notes, tests, video lectures and more- for all subjects of your exam.
- Given that the value of furniture on 1.1. 93 is ₹ 8000, furniture purchased during the year is ₹ 4,000, sale of furniture on no loss no profit basis is ₹ 2,000, and the furniture is valued at ₹ 7,000 on 31.12. 93, the depreciation for the year 1993 will be
- ₹ 1,000
- ₹ 3,000
- ₹ 5,000
- ₹ 7,000
- Which one of the following statements is NOT correct?
- Bonus shares can be issued out of General Reserves
- Bonus shares can be issued in lieu of dividends
- Bonus shares, can be issued even if the shares of the company are partly paid up
- Bonus shares can be issued even if there is a default in the payment of any term loans outstanding to any Public
- Financial Institution
- Which of the following are applicable to Sinking Fund method of depreciation?
- Periodic depreciation is smaller than the assets actual annual depreciable cost.
- Amount of interest constantly declines due to assets reducing balances.
- Annual net incidence on Profit and Loss Account remains constant due to incorporation of only fixed depreciation.
- Periodic depreciation is recorded through the Asset Account.
- Select the correct answer using the codes given below:
- Codes:
- 2 and 4
- 1 and 3
- 1,2 and 3
- 2,3 and 4
- Codes:
- Match List I with List II and select the correct answer using the codes given below the lists:
Table Supporting: NET, IAS, State-SET (KSET, WBSET, MPSET, Etc.) , GATE, CUET, Olympiads Etc. : Commerce MCQs (Practice_Test 34 of 99) List-I List-II - Amortisation
- Depreciation
- Depletion
- Obsolescence
- Diminution in the life of the asset due to excessive use Exhaustion of natural resource
- Expiration, of tangible assets
- Expiration of intangible assets
- Economic deterioration due to improved inventions
- A
- B
- C
- D
- 1
- 2
- 3
- 4
- 1
- 2
- 4
- 5
- 5
- 2
- 3
- 4
- 4
- 3
- 2
- 5
- Which one of the-following methods of inventory valuation matches current cost with current revenues?
- Last in first out
- First in first out
- Simple average
- Weighted average
- Which of the following statements are correct?
- Inventory includes raw materials, finished goods and goods in process.
- Inventory is a part of the working capital.
- Inventory-includes goods likely to be purchased in coming months.
- Select the correct answer using the codes given below:
- Codes:
- 1,2 and 3
- 2 and 3
- 1 and 3
- 1 and 2
- Codes:
- The success of perpetual inventory system depends upon
- placing order for materials at regular intervals
- exercising control over the issue of materials
- recording the receipt and issue of materials immediately after each transaction
- recording the receipt of materials by storekeeper in the Bin cards
- Consider the following factors
- Margin of safety
- Lead time
- Ordering cost
- Economic Order Quantity
- Average quantity consumed
- Storage cost
- The ordering level is fixed by taking into account
- 1,4 and 6
- 1,2 and 5
- 2,3 and 4
- 3,5 and 6
- Operating Ratio is given by
- Total Operating Profit Total Shareholders Equity
- Total Operating Cost Total Operating Revenue
- Total Operating Cost Total Capital Employed
- Total Operating Profit
- Total Operating Capital
- Interest Coverage Ratio is given by
- Net Profit/Interest on Debt
- Debt Capital/Interest on Debt
- Earnings Before Interest and Taxes/Interest on Debt
- Profit Before Tax/Interest on Debt
- In a common-size balance Sheet each item is expressed as a percentage of
- Equity Capital
- Debt Capital
- Fixed Assets
- Total Assets
- Given that Current Ratio = 2.5 Acid-test ratio = 1.5 Net Working Capital = ₹ 60,000 The value of Current Liabilities will be
- ₹ 15,000
- ₹ 40,000
- ₹ 60,000
- ₹ 1,00, 000
- Match List I (Ratios) with List II (Method of calculation) and select the correct answer using the codes giver below the lists:
Table Supporting: NET, IAS, State-SET (KSET, WBSET, MPSET, Etc.) , GATE, CUET, Olympiads Etc. : Commerce MCQs (Practice_Test 34 of 99) List-I List-II - Debt-Equity Ratio
- Proprietary Ratio
- Capital Gearing Ratio
- ROI
- Equity capital and total debt capital
- External equity and owners equity
- Total shareholders funds and total assets
- Profit before interest & tax and net assets
- A
- B
- C
- D
- 2
- 3
- 1
- 4
- 2
- 3
- 4
- 1
- 3
- 2
- 1
- 4
- 3
- 2
- 4
- 1
- Match List I with List II and select the correct answer using the codes given below the lists
Table Supporting: NET, IAS, State-SET (KSET, WBSET, MPSET, Etc.) , GATE, CUET, Olympiads Etc. : Commerce MCQs (Practice_Test 34 of 99) List-I List-II - Financial Leverage
- Quick Ratio
- Stock Turnover Ratio
- Margin on Sales
- Efficiency
- Profitability
- Risk
- Liquidity
- A
- B
- C
- D
- 3
- 4
- 1
- 2
- 4
- 3
- 1
- 2
- 4
- 3
- 2
- 1
- 3
- 4
- 2
- 1
- Trading on equity takes place
- when Capital other than that of equity shareholders also employed
- only when equity Capital is employed
- only when debenture funds are employed
- when profits are ploughed back