Q. Which ratio is calculated to ascertain the efficiency of inventory management in terms of capital investment?
✅ Correct Answer: (A)
stock velocity ratio.
Advance Accounting MCQs and Notes
Q. Inventory or stock turnover ratio is also called .
✅ Correct Answer: (A)
stock velocity ratio.
Q. Turnover ratio is also known as .
✅ Correct Answer: (A)
activity ratios.
Q. The dividend is related to the market value of shares in .
✅ Correct Answer: (D)
dividend yield ratio.
Q. The ratio shows the preference dividend as a proportion of profit available for shareholders is
✅ Correct Answer: (B)
fixed dividend cover ratio.
Q. The ratio establishes the relationship between profit before interest and tax and fixed interest charges is .
✅ Correct Answer: (A)
interest cover ratio.
Q. The ratio which indicates earnings per share reflected by the market price is .
✅ Correct Answer: (D)
price earnings ratio.
Q. The ratio which shows the proportion of profits retained in the business out of the current year’s profits is
✅ Correct Answer: (A)
retained earnings ratio.
Q. The ratio which is calculated to measure the productivity of total assets is
✅ Correct Answer: (C)
return on total assets.
Q. Prepaid expenses is an example of .
✅ Correct Answer: (B)
current assets.