BC-Account Welcome to your BC-Account What is the main objective of financial accounting? profit and loss account only balance sheet only both P & L account and balance sheet trial balance only According to which concept the owners are considered to be different from the business? business entity concept going concern concept money measurement concept accounting period concept According to which concept all the transactions are measurable in the terms of money are recorded in accounts? business entity concept going concern concept money measurement concept accounting period concept While putting the value or price of an entity in financial records the lowest price is recorded not the current price or current market value. This is known as Business Entity Concept Conservatism Expenditure Concept Money Measurement Concept Which of the following is related to Scientific system of maintaining account? single entry double entry contra entry book entry Which of the following defines outstanding salary account? natural personal account artificial personal account representative personal account real account Interest earned is a personal account real account nominal account Intangible real account Investment is a personal account real account nominal account Representative personal account Trading account is a personal account real account nominal account none of the above Profit and loss account starts with net profit net loss gross profit none of the above All revenue incomes are credited to manufacturing account trading account profit and loss account none of the above In profit and loss account, if debit is more than the credit, the difference is net profit net loss gross profit none of the above Assets which are acquired and held permanently and used in the business with the objective of making profits is known as fixed assets current assets intangible assets none of the above Which of the following assets have definite physical share or identity and existence? fictitious assets current assets tangible assets intangible assets Outstanding expenses is a liability income asset none of the above Interest on capital in a business can be defined as expense income liability asset The ratios which reflect managerial efficiency in handling the assets is turnover ratios profitability ratios short term solvency ratio none of the above Interest on capital is added with capital profit loss donation The ratios which reveal the final result of the managerial policies and performance is turnover ratios profitability ratios short term solvency ratio none of the above Which of the following matches with fixed assets ratio? short-term solvency ratio long-term solvency ratio profitability ratio turnover ratio The ratio which determines the profitability from the shareholders point of view is return on investment gross profit ratio return on shareholders funds operating profit ratio The ratio which shows the proportion of profits retained in the business out of the current year profits is retained earnings ratio pay out ratio earnings per share None How the dividend is related to the market value of shares? interest coverage ratio fixed dividend coverage ratio debt service coverage ratio dividend yield ratio Which ratio is calculated to ascertain the efficiency of inventory management in terms of capital investment? stock velocity ratio debtors velocity ratio creditors velocity ratio working capital turnover ratio Which ratio measures the number of times the receivables are rotated in a year in terms of sales? stock turnover ratio debtors turnover ratio creditors velocity ratio working capital turnover ratio Current assets - current liabilities = fixed capital working capital opening capital closing capital The ratio establishes the relationship between fixed assets and long-terms funds is current ratio fixed assets ratio fixed assets turnover ratio debt equity ratio A high capital gearing ratio indicates under capitalization over capitalization borrowed capital long term funds Low turnover of stock ratio indicates solvency position monopoly situation overinvestment in inventory liquidity position All those assets which are converted into cash in the normal course of business within one year are known as fixed assets current assets fictitious assets wasting assets Please fill in the comment box below. Time's up
