Accounting - Study Mode

[#2711] A higher inventory ratio indicates
Correct Answer

(C) Both A and B

Explanation

Solution: A higher inventory ratio indicates Better inventory management and Quicker turnover.

[#2712] Return on Investment Ratio (ROI) =
Correct Answer

(D) (Net profit / Total assets) x 100

Explanation

Solution: Return on Investment Ratio (ROI) = (Net profit / Total assets) x 100. Return on Investment (ROI) is a performance measure used to evaluate the efficiency of an investment or compare the efficiency of a number of different investments.

[#2713] A low Return on Investment Ratio (ROI) indicates
Correct Answer

(C) Both A and B

Explanation

Solution: A low Return on Investment Ratio (ROI) indicates Improper utilization of resources and Over investment in assets.

[#2714] Sales expenditure budget is prepared by estimating the expense(s) of
Correct Answer

(D) All of the above

Explanation

Solution: Sales expenditure budget is prepared by estimating the expense(s) of Advertisement, Market analysis and Salesman's salary.

[#2715] Budgeting is difficult to apply in the following cases
Correct Answer

(D) All of the above

Explanation

Solution: Budgeting is difficult to apply in the Products subjected to rapid changes, Job order manufacturing and Uncertain market condition.