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JNTU ONLINE EXAMINATIONS [Mid 2 - mefa] 1. Which of the following business organization has separate legal entity other than its owners? [01D01] a. b. c. d. 2. 3. Partnership business form is governed by the provision of [01D02] a. b. c. d. Indian Companies Act 1872 Companies Act 1956 Indian Partnership Act 1932 COPRA Sole proprietorship Joint stock companies Registered partnership Unregistered partnership

8. What makes a business quite challenging? [01S02] a. b. c. d. Profit http://jntuk.strikingsoon.com Risk involved Employees Knowledge of customers

9. The simplest form of business organization is [01S03] a. b. c. d. Sole proprietorship Unregistered partnership Registered Partnership Cooperative societies

10. The written agreement among partners for coming together is called [01S04] a. b. c. Memorandum of understanding Partnership deed Partnership affidavit Partnership Covenant

4. The degree of freedom and flexibility for decision making is large in case of [01M01] a. b. c. d. Sole proprietorship Unregistered partnership Registered partnership Private limited company

d.

11. The serious limitation of sole trader form is [01S05] a. b. c. d. It is too simple Limited capital Primitive form of organization Lack of professionalism

5. Among the form of business the one which has least risk to owner is [01M02] a. b. c. d. Sole proprietorship Registered partnership Unregistered partnership Joint Stock Companies

12. The maximum number of partners permitted in case of Banking business is [02D01] a. b. c. d. 2 10 20 5

6. Which of the following is a specific feature unique to partnership form of business [01M03] a. b. c. d. Profit Agreement Business Customers

13. A partner who gives an impression that he is partner of the firm and liable for the claim is called [02D02] a. b. c. d. Active partner Partner by Estoppel Agent Nominal partner

7. Which of the following feature is NOT characteristic feature of business? [01S01] a. b. c. d. Transfer of ownership Quick decision making Welfare of customers Welfare of customers

14. The maximum number or partners in case of non banking business permitted is [02M01] a. b. c. 2 10 20

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15. A partner who neither contributes capital nor takes part in the affairs of business is called [02M02] a. b. c. d. Sleeping partner http://jntuk.strikingsoon.com Figurehead partner Nominal partner Inactive partner

b. c. d.

SEBI Company Law Board Ministry of Commerce, GOI

22. Indian Railways is an example of [03D01] a. b. Public Corporation Government Company Departmental Undertaking Non profit society

16. An unregistered partnership firm cannot [02M03] a. b. c. d. file suit in support of its claim enter into 'future' contracts raise loans from its creditors admit sleeping partners

c. d.

23. The number of clauses describing the contents of memorandum of Association are [03D02] a. 14 8 6 12

17. Whenever any of the partners die [02S01] a. the legal heir of the deceased becomes partner automatically and the partnership continues. the partnership is dissolved the partnership continues with others sharing the obligations and rights in proportion to their shares. The partnership stands suspended

b. c. d.

b. c.

24. Maximum number of members in a private limited company is [03M01] a. b. 10 20 50 Unlimited

d.

18. A partner who contributes capital but does not take part in the affairs of the partnership is called [02S02] a. b. c. d. Nominal partner Inactive partner Contributing partner Sleeping partner

c. d.

25. The document that deals with rules and regulation governing the internal conduct of the company is called [03M02] a. b. Prospectus Articles of Association Memorandum of Association Standing orders

19. The procedure for dissolution of a partnership firm is specified in document called [02S03] a. b. c. d. Termination procedure Dissolution document Partnership deed Closure memo.

c. d.

26. A government company is one in which ---- percent or more of the share is held by state or central government [03M03] a. 51% 67% 100% 75%

20. The partners of partnership firm have obligations to liabilities to third parties [02S04] a. b. c. d. jointly and severally with unlimited liabilities jointly with limited liabilities severally with unlimited liabilities jointly and severally with limited liabilities

b. c. d.

27. The charter of the company is called [03S01] a. b. Memorandum of Association Prospectus Articles of Association

21. The competent authority to issue permission to release prospectus is [02S05] a. RBI

c.

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28. The minimum number of members required to form public limited company is [03S02] a. b. c. d. 2 7 50 10

b. c. d.

Public Corporation Government Company Central Departmental undertaking

35. The business organization where the right to transfer the share is restricted is called [04M02] a. Public limited company Cooperative society Private limited company Multinational company

29. The minimum number of members required to form private limited company is [03S03] a. b. c. d. 2 7 50 10

b. c. d.

36. Which of the following is not a feature of the company? [04M03] a. transferability of shares unlimited liability common seal winding up

30. Prospectus is issued by [03S04] a. b. c. d. Public limited company Private limited company Cooperative society Public limited company, Private limited company and Cooperative society

b. c. d.

37. Business entity which comes into existence by statue of parliament or state legislature is called [04S01] a. Public limited company Public corporation Government Company Departmental Undertaking

31. National Thermal Power Corporation (NTPC) is an example of [03S05] a. b. c. Public Corporation Government Company Departmental Undertaking d. public Limited Company

b. c. d.

38. Government business entity registered under Companies Act 1956 is called [04S02] a. Department undertaking Public corporation Public limited company Government Company

32. A company, which controls the composition of board of directors of another company, is called [04D01] a. b. c. d. Holding Company Subsidiary company Unlimited Company Limited Company

b. c. d.

39. A company, which controls the composition of board of directors of another company, is called [04S03] a. Holding Company Subsidiary company Unlimited Company Limited Company

33. The Indian partnership Act was enacted in [04D02] a. b. c. d. 1932 1942 1952 1962 http://jntuk.strikingsoon.com

b. c. d.

40. The voting rights in a private or public limited company is based [04S04] a. b. c. on equality principle the proportion to the shares held on the social standing of share holder

34. Among the public enterprises the degree of autonomy is highest in [04M01] a. Departmental undertaking

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41. In cooperative society the business is governed on the principle of [04S05] a. b. c. d. one man one vote proportion of share held standing of member

c. d.

Trust Standing Order

48. One of the examples of successful product produced by cooperative society is [05S02] a. Nirma Baidyanath Chavanprash Amul Butter Milkmaid

contribution of member. b. c. d.

42. Cooperative Societies Act was enacted in [05D01] a. b. c. d. 1932 1904 1914 1945

49. Whose shares can be listed in Stock Exchange? [05S03] a. b. c. d. Departmental Undertaking Private limited company Cooperative society Public limited company

43. Which of the following can be considered as the most disadvantage of departmental undertaking? [05D02] a. b. c. d. Shares not traded in public Shares not freely transferable Red tapism and bureaucracy Big size

50. Which of the organizations is formed for the stated objective of providing employment besides other objectives? [05S04] a. b. c. d. Public enterprises Cooperative Societies Public limited company Private Limited company

44. The minimum paid up capital to form a public company is [05M01] a. b. c. d. Rs. 8,00,000 Rs. 5,00,000 Rs. 4,00,000 Rs.10,00,000

51. When total of current liabilities are more than current assets it is a situation where we have necessarily [06D01] a. negative working capital breakdown of business liquidation of business long operating cycle

45. Which of the shares can be freely transferred? [05M02] a. b. c. d. Departmental undertaking Cooperative society Private limited company Public limited company

b. c. d.

52. Higher the length of operating cycle, [06D02] a. b. c. d. more robust is the operation less efficient is the operation more efficient is the operation less requirement is the working capital

46. A company whose controlling shares are held by another is called [05M03] a. b. c. d. Parent company Holding company Subsidiary company

53. In Economics capital is considered as [06M01] a. one of the factors of production source of economic problem one of the factors of consumption one of the factors of distribution

Supporting company b. c. d.

47. Partnership is created by [05S01] a. b. Contract Solicitation

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54. The total of stocks of raw materials , work-inprogress, finished goods, stores and spare parts, monetary assets, tender deposits, deposits with customs, excise and port authorities including funds provided by trade creditors is known as [06M02]

60. Slow moving finished goods and raw material inventory causes, [06S05] a. b. decrease in length of operating cycle increase in length of operating cycle decrease in working capital increase in efficiency of operation

a. b. c. d.

Capital Gross working capital Net working capital Business assets

c. d.

61. Debentures, equity and term loans are sources of funds for [07D01] a. b. c. d. fixed and long term assets working capital current assets short term investments

55. The differences between total current assets and current liabilities is [06M03] a. b. c. d. Net working capital Gross working capital Fixed working capital Trading deficit

62. Cash credit, bill discounting and sundry creditors are sources of funds for [07D02] a. b. c. d. fixed capital long term assets current assets investment in machinery

56. The difference between total of assets and liabilities of a business enterprise is [06S01] a. b. c. d. profit loss capital liquidity

63. More trade creditors with increase in credit period would, [07M01] a. b. c. d. decrease working capital requirement increase the working capital requirement increases length of operation cycle decreases working capital management efficiency

57. The problem for growth of underdeveloped countries is essentially the problem of [06S02] a. b. c. d. lack of capital lack of labour lack of land lack of will

64. Goodwill and patents are example of [07M02] a. current assets working capital intangible long term assets tangible long term liabilities

58. That portion of the capital which is invested in acquiring long term assets is called [06S03] a. b. c. d. Durable capital Fixed capital working capital Reserves

b. c. d.

65. Tandon and Chore committee recommendation provide guidelines on bank credit for [07M03] a. long term financing working capital financing customer financing fixed asset financing

59. The portion of capital needed for running the business on day to day basis is called [06S04] a. b. c. d. Liquid capital Liquidity Working capital Quick assets

b. c. d.

66. Where product obsolescence and technology obsolescence are fast the most useful criteria for capital budgeting is [07M04] a. A. pay back period

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b. c. d.

accounting rate of return NPV IRR

73. Where does one buy and sell the shares of the existing companies? [08M01] a. b. Money market Capital market Secondary market Bond market

67. Shorter collection period would, [07S01] a. b. c. d. increase the working capital requirement reduce the working capital requirement increases length of operating cycle increases sales

c. d.

74. Which of the following is not a current asset? [08M02] a. tender deposit Cash deposited with customs for duty prepaid expenses Advance paid by customer along with order

68. Debentures, term loans and mortgages are components of [07S02] a. b. c. d. working capital capital long term liabilities current liabilities

b. c. d.

75. When the rate of return is more than the cost of capital then the project should be [08M03] a. rejected accepted kept in abeyance kept out of consideration

69. The most liquid form of current assets is [07S03] a. b. c. d. marketable inventory cash and bank balance finished goods tender deposit

b. c. d.

76. Which of the following is not a form of long- term finance? [08S01] a. b. c. d. Term loan Preference shares Debentures Cash credit

70. Equity and preference share capital major sources of financing [07S04] a. b. c. d. fixed capital working capital current assets day to day operational need

77. Which of the following is a current liability? [08S02] a. b. c. Bills receivables Bills payable prepaid expenses share capital

71. The compound rate of return earned on initial investment for the life of the project is measured by [08D01] a. b. c. d. pay back period method profitability index method NPV IRR

d.

78. The flow of money in the business is called [08S03] a. b. wealth cycle business cycle economic cycle working capital cycle

72. Discounting factor in NPV must be [08D02] a. b. c. d. based on cost of capital 10% decided only by Finance Manager in the range of 8% to 12%

c. d.

79. Capital budgeting is done for [08S04] a. b. working capital project financing and long term capital planning

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d.

estimating the profit

86. Present value of revenue stream divided by investment is [09M04] a. b. NPV IRR Profitability Index Cost of capital

80. The diminution or reduction in the value of the asset due to wear and tear is called [08S05] a. b. c. d. depreciation

c. dissipation http://jntuk.strikingsoon.com d. liquidation attrition

87. The process of evaluating the relative worth of long term investment proposals is called [09S01] a. b. discounting capital budgeting depreciating valuation of firm

81. In order to make capital budgeting a purposeful exercise the most important thing is [09D01] a. b. c. d. realistic estimation of revenue

c. calculation of payback period d. calculation of NPV calculation of profitability Index

88. The period within which the original investment is recovered is called [09S02] a. b. c. d. Pay back period Operating cycle length turnover period collection period

82. Average profit after taxes over the life of the project divided by average book investment during the life of the project after depreciation is [09D02] a. b. c. d. accounting rate of return Payback period Earning per share Profitability Index

89. For the profitable projects the profitability index should be [09S03] a. b. c. d. greater than zero greater than one equal to one less than one

83. The difference between the present value of future cash inflows to the original investment is [09M01] a. b. c. d. NPV profitability index discounted cash value cost of capital

90. Which of the following method does not use the concept of Present value of future revenue? [09S04] a. b. c. NPV IRR Accounting rate of return Profitability Index

84. Internal rate of return (IRR) is the rate at which the difference between the present value of cash inflows and the original cost is [09M02] a. b. c. d. equal to zero equal to one greater than zero greater than one.

d.

91. Which of the following techniques of capital budgeting uses present value of future earnings? [09S05] a. b. c. ARR Payback period Profitability index Decision tree

85. Average profit after taxes over the life of the project divided by average book investment during the life of the project after depreciation is [09M03] a. b. c. d. accounting rate of return Payback period Earning per share Profitability Index

d.

92. Liquidity criteria in investment appraisal is emphasized in [10D01]

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b. c. d.

NPV Payback period method profitability Index

99. Capital budgeting decision are crucial because they are [10S02] a. b. uncommon redeemable immeasurable irreversible

93. The post pay-back cash flows are [10D02] a. b. c. d. ignored in pay back period calculation included in pay back calculation given weighted preference in calculation is subtracted from pre pay back period cash inflows

c. d.

100.Replacement of worn out machine or equipment is essentially [10S03] a. recurring expenditure decision working capital decision capital budgeting decision routine replacement maintenance decision Discounting rates are [10S04] calculated on simple rate basis annually compounded annually divided to arrive at the present value multiplied

94. Which of the following is not modern method of investment appraisal? [10M01] a. b. c. d. ARR NPV IRR Profitability index

b. c. d. 101. a. b.

95. Projects that cannot be taken up simultaneously with the other are called [10M02] a. b. c. d. mutually exclusive complementary supplementary derived projects

c. d.

102.Government transacts the payments into the government's treasury are mainly dealt on [11D01] a. b. Single entry book Double entry book Real accounts nominal accounts

96. Which of the following methods is used in capital budgeting decisions in cases where the book value less scrap is equally adjusted over the life of the asset? [10M03] a. b. c. d. Written down value method Straight line method Replenishment method annuity method

c. d.

103.Capital i.e. owner's share of assets of the firm is always what is left out of assets after paying outsiders and a transaction must affect asset or liability or capital is based on [11D02] a. b. Dual aspect concept Money measurement concept Realisation concept Business entity concept

97. Which of the following is determined on after tax basis for capital budgeting? [10M04] a. b. c. d. cash inflows cash outflows depreciation scrap value of asset

c. d.

104.The concept that only those transactions that are expressed in monetary terms are recorded is called [11M01] a. Cost concept Money measurement concept Realisation concept conservatism

98. The present value of future cash inflows over and above cost of investment is [10S01] a. b. c. d. Profit NPV Cost of capital Discounting factor

b. c. d.

105.All transaction recorded according to records do not necessarily mean cash flow. All transactions

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event though not yet settled in cash must be taken into account is [11M02] a. b. c. d. Going concern concept Accrual concept Cost concept Business entity concept

representation of firm's financial performance is called [11S06] a. b. c. d. Reliability Relevance Consistency comparability

106.The concept that the accountant treats the business as distinct from person who owns it is called [11S01] a. b. c. d. Going concern concept Dual aspect concept Business entity concept Consistency

112.An accounting principle that requires recognition of revenue at the time of it is earned called [12D01] a. b. c. d. Prudence principle Realisation principle Matching principle Cost principle

107.The concept that for every credit there is debit is borne out of [11S02] a. b. c. d. Cost concept http://jntuk.strikingsoon.com

113.The residual interest in the assets of the enterprise after deducting all its liabilities is called [12D02] a. b. c. d. profit revenue gain equity

Money measurement concept Double entry system consistency

108.The assumption that the business will exist for a long time and transaction recorded on that basis is [11S03] a. b. c. d. Going concern concept Business entity concept Accrual concept Cost concept

114.The recognition of expense that has not been paid or a revenue that has not been received is called [12M01] a. b. c. d. Accrual Provision Reserve Deferral

109.The accounting is based on historical cost and not market value is [11S04] a. b. c. d. 110. a. b. c. d. Consistency concept Conservatism concept Cost concept Money measurement concept At any time in business [11S05] Assets = Liabilities + Capital Capital - Liabilities = Assets Asset + Capital = Liabilities Assets + Liabilities = Capital

115.The sequence of accounting processes beginning with the analysis and the journalizing of transaction and ending with the post closing of trial balance is called [12M02] a. b. c. d. 116. a. b. c. posting tallying accounting cycle adjusting entries Cash Book is [12M03] a ledger a/c Journal served the dual purpose of Journal and ledger account

111.The concept that the accounting describes information that is verifiable and faithful

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117. a. b. c. d.

The two parts of owner's equity are [12S01] Assets and Liabilities Net income and Common Stock

d. 124. a.

Profit & Loss A/c and Balance Sheet Contra entries are found only in [13M01] personal accounts Cost accounts Cash book Balance sheet

Contributed capital and retained earnings b. Revenue and expenses c. d.

118.Which financial statement is based on the accounting equation? [12S02] a. b. c. d. Income statement the Balance sheet

125.The source of enterprise resources obtained from non-owners is [13M02] a. liabilities assets capital profit Cash in hand is classified into [13M03] Real account Nominal account Personal account Trading account

the statement of cash flows b. Statement of changes in shareholder's equity c. d. 126. a. b. c. d.

119.A chronological record of transaction entered into by a business is called [12S03] a. b. c. d. Account ledger Journal posting

120.Debit what comes in and credit what goes out is the rule for [12S04] a. b. c. d. Real accounts Nominal accounts Personal accounts Trading a/c

127.Debit the receiver and credit the giver is the rule for [13S01] a. b. c. d. real accounts nominal accounts personal accounts stationary account Impersonal accounts are [13S02] Profit and Loss A/cs Trading A/cs Real accounts and Nominal accounts Balance Sheet

121.Debit all expenses and losses credit all gains and profits is the rule for [12S05] a. b. c. d. Real accounts Nominal accounts personal accounts Furniture a/c

128. a. b. c. d.

122.Which of the following is an essential characteristic of an asset? [13D01] a. b. c. d. 123. a. b. An asset is obtained at a cost An asset provides future benefit An asset is tangible Asset is immeasurable Financial statements are [13D02] Cash a/c and creditors ledger Real and Nominal A/cs

129.The itemized list of all ledger balances, cash balances at the close of the accounting year is used to prepare [13S03] a. b. c. d. Trial Balance Trading A/c Profit and Loss A/c Balance sheet

130.The statement of the sources and the ways in which these resources are invested at a specified date is shown in [13S04] a. Profit and Loss A/c

c. Personal and Impersonal A/cs

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b. c. d.

Trading A/c Balance Sheet Trial balance

c. d.

Revenue expenditure Cost of goods

131.The expenses yet to be paid are called [13S05] a. b. c. d. accrued expenses Normal expenses Arrear expenses Accumulated expenses

137.Amount that are received in the ordinary course of business is called [14S01] a. b. c. d. net profit revenue receipts capital receipts gross profit

132.Receivable that is amount due from a customer is [14D01] a. b. c. d. monetary current asset non monetary current asset fixed asset long term asset

138.The gross profit or loss for the end of a given accounting period is shown in [14S02] a. b. c. d. Profit and Loss A/cs Capital A/c Trading A/c Cash a/c

133.That portion of expenditure that remains uncharged to Profit & Loss a/c for a given period is [14D02] a. b. c. d. Capital expenditure Revenue expenditure Deferred revenue expenditure preliminary expenses

139.Net profit or loss for the end of a given accounting period is shown in [14S03] a. b. c. d. P & L a/c Trading a/c Cash a/c Bank a/c http://jntuk.Strikingsoon.com

140.When the company pays dividend to shareholders which of the following is affected? [14S04] a. b. c. d. Income statement Balance sheet Trading a/c Profit and Loss a/c

134.Which of the following errors are not disclosed in trial balance? [14M01] a. b. c. d. Posting to wrong side of a/c Compensating error Error in totaling account wrongly Posting in one a/c from the journal omitting to post another a/c

141.What capital maintenance concept is applied to report net profit? [14S05] a. b. Physical capital Financial capital measured in nominal monetary units Financial capital in units of constant purchasing power intangible capital

135.Which of the following error can be disclosed? [14M02] a. b. c. d. Errors of principle Compensating errors Posting to wrong side of account Errors of complete omission of transaction

c.

d.

136.Expenditure incurred to maintain the earning capacity of the business in the normal course for the current period is [14M03] a. b. Deferred revenue expenditure Capital expenditurec. Current cost and realizable value

142.Which of the following measurement bases are consistent with the fair value concept? [15D01] a. b. c. Historical cost and present value Historical cost, current cost and realizable value Current Cost & Realizable Value

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d.

Historical cost and realizable value

b. c.

bad debt a/c personal a/c sales a/c

143.Withdrawal of goods from business by the proprietor should be credited to [15D02] a. b. c. d. 144. a. b. c. d. Proprietor account Cash account Bank account Goods account Patents account is a [15M01]

d.

150.Which of the following is called return inwards? [15S04] a. b. c. d. purchases purchase return sales return free samples sent by suppliers

Real a/c Personal a/c Nominal a/c Fictitious a/c a. b. Sales book Cash book Purchase book Ledger 151.Name of the main book of accounts in which all accounts are kept is [15S05]

145.The accounting information as provided in company annual report is meant for [15M02] a. b. c. d. employees Accounting professionals Shareholders Board of Directors

c. d.

152.A company's return on investment indicates its [16D01] a. b. liquidity solvency profitability leverage

146.The ascertaining and controlling of the cost of a product or services is principally achieved through [15M03] a. b. c. d. 147. a. b. c. d. Financial accounting Cost accounting Zero Based budgeting Management Accounting Air conditioning the building is [15S01]

c. d.

153.The standard value of 1:1 is specified for [16M01] a. b. c. d. current ratio quick ratio debtors turnover ratio inventory turn over ratio

capital expenditure capital receipt revenue expenditure deferred revenue expenditure 154.The overall ability of the business to meet its financial commitments in the long run with equity as percent of total liability is indicated by [16M02] a. b. c. d. average collection period solvency ratio quick ratio profitability ratio

148.Salary paid in cash to Mr. Joseph, General Manager Works is credited to [15S02] a. b. c. d. GM's a/c Mr.Joseph's a/c Salary a/c Cash a/c

155.The proportion of owners fund to the total fund deployed in the business is indicated by [16M03] a. b. solvency ratio debt equity ratio

149.When debt is declared bad, which of the following account is debited? [15S03] a. debtor's a/c

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d. 156. a. b. c. d.

capital gearing ratio Current ratio is basically [16S01]

b. c. d.

gross profit ratio ROI assets profitability

liquidity ratio activity ratio solvency ratio profitability ratio a. b. net profit ratio ROI EPS solvency ratio 163.Net profit after taxes divided by number of shares outstanding gives [17D02]

157.The proportion of current asset to cover current liability is calculated using [16S02] a. b. c. d. quick ratio acid test ratio current ratio activity ratio

c. d.

164.The efficiency of inventory management is measured by [17M01] a. b. proprietary ratio interest coverage inventory turn over ratio acid test ratio

158.When closing stock and prepaid expenses are subtracted from current assets we get [16S03] a. b. c. d. 159. a. b. c. d. current liability quick assets net working capital sundry debtors Capital gearing ratio is [16S04]

c. d.

165.The surplus of sales over the cost of production ( in manufacturing) and service charges ( in servicing industries) is measured by [17M02]

a. debt equity ratio earning per share inventory turn over ratio return on investment b. c. d.

gross profit ratio ROI assets profitability solvency ratio

160.The number of times the working capital has circulated itself is given by [16S05] a. b. c. d. working capital cycle length inventory turn over ratio working capital turn over ratio fixed asset turn over ratio

166.Current assets of XYZ company are Rs. 1,20,000 and total assets are Rs. 6,00,000. Current liabilities are Rs. 80,000 and total liabilities are Rs. 3,00,000. What is the current ratio? [17M03] a. b. c. d. 2 2.5 5 1.5

161.The velocity of the fixed assets is measured by [16S06] a. b. c. d. quick ratio net profitability ratio

167.The set of ratios that measure the company's ability to pay its current bills and operating cost are known by [17M04] a. solvency ratios liquidity ratios profitability ratios market indicators

return on investment b. fixed asset turn over ratio c. d.

162.The ratio of operating profit by capital employed is given by [17D01] a. net profit ratio

168.The number of days in a year divided by collection period in days is [17S01]

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a. b. c. d.

inventory turn over ratio fixed asset turn over ratio working capital turn over ratio debtor turn over ratio

survive over a long period of time is known as [18M01] a. b. c. liquidity ratios profitability ratios market indicators solvency ratios

169.The efficiency of collection is measured by [17S02] a. b. c. d. collection period inventory turnover ratio gearing ratio quick ratio

d.

175.The set of ratios that measure the operating or income performance of a company is know as [18M02] a. b. profitability ratios liquidity ratios solvency ratios market indicators

170.Suppose a firm had an inventory turn over ratio of 20. Taking the year to consist of 360 days, how many days on an average does an item remain in inventory? [17S03] a. b. c. d. 15 days 18 days 20 days 12 days

c. d.

176.The set of ratios that relate the current market price of the companys stock to earning is [18S01] a. b. c. profitability ratios solvency ratios activity ratios market indicators

171.Jain and sons have their sales Rs. 20,00,000 cost of sold Rs.12,00,000 and average inventory Rs. 4,00,000. What was the inventory turnover ratio for the period? [17S04] a. b. c. d. 3 4 5 0.33

d.

177.The level of different activities in business is measured using [18S02] a. b. c. d. profitability ratios turnover ratios market indicators solvency ratios

172.A high inventory turn over ratio indicates that [18D01] a. b. c. d. inventory is selling rapidly inventory is not moving quickly the company is ordering too much inventory the company is selling inventory at high price

178.The general norm for current ratio is [18S03] a. b. c. d. 2:1 1:1 1:2 0.5:2

173.Which ratio is meaningless in a start up company that has not yet earned profit? [18D02] a. b. c. d. P/E ratio Gross profit ratio inventory turn over ratio Current ratio

179.Reddy & Reddy C0 reported a P/E ratio of 50 on the last day of the financial year. If the company reported earning of Rs. 2.50 per share, what was the price at which share of the company being traded at that time? [18S04]

a. b.

Rs. 20 per share Rs. 125 per share Rs. 50 per share

174.The set of ratios that measure the company's ability to meet its long- term obligation and to

c.

d. Rs. 47.50 per share

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180.On Mar 31, Naidu caterers reported total current assets of Rs. 45,000 total assets of Rs. 2,00,000 total current liabilities of Rs. 42,000 and total liabilities of Rs.80,000. How much net working capital did Naidu caterers have at that time? [18S05]

d.

Overhead ratio

186.If the current market price of share whose face value at Rs. 10 is Rs.150, and if the company declares dividend of 45% then the dividend yield is [19M03] a. b. c. d. 3 per annum 45 per annum 30 per annum 15 per annum

a. b. c. d.

Rs. 87,000 Rs.2,00,000 Rs.3000 Rs. 1,23,000

181.If a firm has Rs. 1,00,000 debt and Rs. 1,00,000 equity then [18S06] a. b. c. d. the return on equity is 1 the debt to equity ratio is 1 the return on assets ratio is 0.5 the firm has too much debt

187.If operating ratio of a company is 92% with a sale of Rs.50,00,000 the profitability per cent ratio is [19S01] a. b. c. . 8 Rs. 4,00,000 Rs.46,00,000 92%

182.Adjusted net profits by capital employed gives [19D01] a. b. c. d. ROI ROCE ROE EPS

188.The price/earning ratio of a company is 30. The company earned Rs. 15 per share for the year ended. As on that what was the price of share in rupees? [19S02]
a.

450 3000 150 2000

b. c. d.

183.The net profits available to equity shareholders to the amount invested by them is [19D02] a. b. c. d. ROI http://jntuk.Strikingsoon.com ROCE ROE EPS

189.The ratio of nominal or face value of the share by market price of the share expressed as percent of dividend per annum is [19S03] a. b. c. d. EPS P/E ratio Dividend yield earning power

184.Financial institution insist on minimum debt to equity ratio of [19M01] a. b. c. d. 2:1 http://jntuk.Strikingsoon.com 1:2 1.5:2 2: 0.5

190.The ratio between net profit before interest and taxes to fixed interest charges is known as [19S04] a. b. Debt equity ratio Net profit ratio Gross profit ratio Interest coverage ratio Dividend yield is basically [19S05] Profitability ratio

185.The ratio between cost of goods sold plus operating expenses and net sales is known as [19M02] a. b. c. Gross profit ratio Net profit ratio

c. d. 191. a.

Operating ratio b. Solvency ratio

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c. d.

Activity ratio Liquidity ratio

198.Inefficient collection of debtors is revealed by [20S02] a. Average payment period Debtors turnover ratio Debt to equity ratio Debt coverage ratio Liquidity crisis is revealed by [20S03] interest coverage ratio net profit ratio current ratio and quick ratio solvency ratio

192.Low capacity utilization is revealed by [20D01] a. b. c. d. quick ratio

b. c. d.

fixed asset turn over ratio debt equity ratio collection period 199. a. b. c. d.

193.Inability to pay dues to financial institution is revealed by [20D02]

a. b. c. d. 194. a. b. c. d.

Average payment period Creditors turnover ratio Debt coverage ratio Debt equity ratio Debt equity ratio is [20M01] Liquidity ratio Solvency ratio Profitability ratio Activity ratio [20M02]

200.Falling demand for the product in the marke is revealed by [20S04] a. b. c. d. 201. a. b. c. d. Gross profit ratio Acid test ratio Current ratio Finished goods turnover ratio Long term solvency is indicated by [20S05] current ratio debt / equity ratio net profit ratio gross profit ratio

195.Turn over ratio helps management in

a. b. c. d.

managing resources managing debt http://jntuk.Strikingsoon.com

evaluating performance managing profit proceeds

196.Borrowing for short term and investing in long- term assets is revealed by [20M03] a. b. c. d. Current ratio and Quick ratio quick ratio and Collection period Current ratio and Fixed Asset ratio Debt Equity ratio and Turnover ratio

197.Ratio of net sales to net working capital is [20S01] a. b. c. d. Working capital turnover ratio Profitability ratio Liquidity ratio Operating ratio