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Management Accounting Quiz Q1–Q10 TC Management Accounting Quiz Q1–Q10 Teal Coral Clean theme — click an option to reveal the correct answer and a concise explanation Cash Flow & Management Accounting Q1. The basic financial statements include A. Statement of Cash Flows B. Statement of Retained Earnings C. Balance Sheet and Income Statement D. All of the Above Answer: All of the Above Solution: The core set of financial statements typically comprises the Balance Sheet, Income Statement (Profit & Loss), Statement of Cash Flows and a Statement of Changes in Equity (which includes retained earnings). Q2. Cash flow example from a financing activity is ...

Accounting Quiz Q91–Q100 | Teal Coral Clean TC Accounting Quiz Q91–Q100 Teal Coral Clean theme — click an option to reveal the correct answer and concise explanation Questions Q91. Closing stock is recorded in the: A. Balance sheet B. Trading account C. Profit & loss account D. Both a & b Answer: Both a & b Solution: Closing stock appears in the Trading Account (as an adjustment to calculate gross profit) and is also shown as a current asset in the Balance Sheet at the period end. Q92. Mining rights are: A. Tangible assets B. Intangible Assets C. Fictitious Assets D. Nominal Assets ...

Accounting Quiz Q81–Q90 TC Accounting Quiz Q81–Q90 Teal Coral Clean theme — click an option to reveal the correct answer and concise explanation Questions Q81. Profit for the objective of calculating a ratio may be taken as: A. Profit before tax but after interest B. Profit after interest and tax C. Profit before interest and tax D. All the above Answer: All the above Solution: Different ratios use different profit measures (e.g., operating ratios use PBIT, return ratios may use PAT or PBT). The appropriate profit definition depends on the ratio being calculated. Q82. When a fixed asset is bought on hire purchase, interest element is classified under ______ activity...

Accounting Quiz Q71–Q80 TC Accounting Quiz Q71–Q80 Teal Coral Clean theme — click an option to reveal the correct answer and a concise explanation Questions Q71. Debt Equity Ratio is 1:2. Which of the following transactions will increase it? A. Issue of new share for cash B. Issue of Debenture C. Redemption of Debenture D. Credit Purchase Answer: Issue of Debenture Solution: Debt‑equity ratio = Debt ÷ Equity. Issuing debentures increases debt while equity remains unchanged, so the ratio rises. Issuing new shares increases equity and lowers the ratio; redemption reduces debt and lowers the ratio. Q72. If Inventory Turnover ratio is divided into 365, it becomes a meas...

Accounting Quiz Q61–Q70 TC Accounting Quiz Q61–Q70 Teal Coral Clean theme — click an option to reveal the correct answer and a concise explanation Questions Q61. Current Ratio is: A. Solvency Ratio B. Liquidity Ratio C. Activity Ratio D. Profitability Ratio Answer: Liquidity Ratio Solution: Current ratio measures short‑term liquidity: Current Assets ÷ Current Liabilities, so it is a liquidity ratio. Q62. Liquid asset does not include : A. Bill receivable B. Debtor C. Bank Balance D. Prepaid Expenses Answer: Prepaid Expenses Solution: Liquid a...

Accounting Quiz Q51–Q60 TC Accounting Quiz Q51–Q60 Teal Coral Clean theme — click an option to reveal the correct answer and detailed explanation Questions Q51. Debenture Redemption Reserve can be created out of: A. Current year profits B. In case current year loss then from retained earnings of previous years C. Both a & b above D. None of the above Answer: Both a & b above Solution: Debenture Redemption Reserve (DRR) is normally created out of profits. If the current year shows a loss, DRR may be created from retained earnings/reserves of previous years subject to legal and policy constraints. Q52. Fixed assets lose their value due to: ...