Accounting - Practice Test

(A) Current ratio will increase

(B) Current ratio will decrease

(C) There will be no effect on the current ratio

(D) None of the above

(C) There will be no effect on the current ratio

(A) price fluctuations

(B) accident

(C) use of asset

(D) none of the above

(C) use of asset

(A) It begins with a debit balance

(B) It is a nominal account

(C) It is prepared to ascertain financial position of the concern

(D) It is prepared by all profit making organisations

(B) It is a nominal account

(A) Net capital employed equals fixed assets

(B) Low sales in relation to fixed assets mean underutilisation of fixed assets

(C) Expenses ratios reflect the profit earning capacity of the concern

(D) The analysis for short term solvency of a company attempts to focus attention on the cash generation power of the company

(A) Net capital employed equals fixed assets

(A) Current Liability & Provisions

(B) Reserves and Surplus

(C) Share Capital

(D) Unsecured Loan

(C) Share Capital

Accounting - Study Mode