Accounting for Managers Questions and Answers Part-19

1. ______________ is a summary of all transactions relating to particular account.
a) Balance sheet
b) Trial Balance
c) Ledger
d) Journal

Answer: c

2. Amount of salary paid to Suresh should be debited to ____________
a) Account of Suresh
b) Salaries account
c) Cash account
d) Outstanding expenses

Answer: b

3. Modern Method of Accounting was introduced by
a) M. S. Gosav
b) Wheldon
c) LucoPacioli
d) R. N. Carter

Answer: c

4. If a company has contingent liabilities, they appear in the ______________
a) Balance Sheet
b) Director’s Report
c) Foot note down the balance sheet
d) Chairman’s report

Answer: a

5. The use of management accounting is
a) Compulsory
b) Optional
c) Obligation
d) Statutory requirement

Answer: b

6. Financial account state the ______________ position of a concern.
a) Financial
b) Economic
c) Non financial
d) None of these

Answer: a

7. Which group of ratios relates profits to sales and investment?
a) Liquidity ratios
b) Debt ratios
c) Coverage ratios
d) Profitability ratios

Answer: d

8. Process that involves decision making with respect to investment in fixed asset
a) Valuation
b) Breakeven analysis
c) Capital budgeting
d) Material management decision

Answer: c

9. When a Bond's Yield to Maturity is greater than the Bond's Coupon Rate, the Bond
a) Is selling at a Premium
b) Has reached its Maturity Date
c) Is priced at Par
d) Is selling at a Discount

Answer: d

10. The ______________ is a common term for the market consensus value of the required return on a stock.
a) Dividend payout ratio
b) Intrinsic value
c) Market capitalization rate
d) Plowback rate

Answer: c