Corporate Accounting MCQ
Given below are Corporate Accounting MCQ with answers. These multiple choice questions are useful for BBA, B Com, MBA, MMS, M Com, BA, MA, and PGDM students. These corporate accounting mcq questions can also be used for UGC NET, SET, Ph D, UPSC, and MPSC competitive entrance exams.
Corporate Accounting MCQ
41) In the calculation of return on shareholders investments the referred investment deals with
A. All reserves
B. Preference and equity capital only
C. All appropriations
D. All of the above
Option: D
42) The assets of a business can be classified as
A. Only fixed assets
B. Only current assets
C. Fixed and current assets
D. None of the above
Option: C
43) The return on investment (ROI) may be calculated as
A. Net profit before interest, tax and dividend / Capital employed
B. Net profit after interest, tax and dividend / Shareholder’s fund
C. ( Net profit – preference dividend )/ No. of equity shares
D. Return on Investment / Net profit ratio
Option: A
44) ROI stands for?
A. Return on Investment
B. Ratio of Investment
C. Return of Income
D. None of these
Option: A
45) In case of a limited company, the term financial statements includes
A. Profit and loss and balance sheet
B. Profit and loss account, profit and loss appropriation account and balance sheet
C. Balance sheet
D. None of the above
Option: B
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46) The profit on the reissue of forfeited share are transferred to
A. Capital A/ c
B. Capital Reserve
C. Profit & Loss A/c
D. General Issues
Option: B
47) The direct advantages of accounting do not include
A. Preparation of financial statements
B. Comparison of results
C. Competitive advantage
D. Information to interested groups
Option: C
48) Which of the following statements is not correct?
A. For the purpose of Funds Flow Statement, the term ‘fund ‘ generally refers to net working capital
B. Funds flow is a wider concept than the Cash flow
C. The flow of funds must arise due to external and not internal transactions of the business
D. The capitalisation of reserves by the issue of bonus shares also involves flow of funds
Option: D
49) Match List I with List II and select correct answer using the codes given below:
List I List II
a. ABC Analysis I. Capital Structure
b. Fund Flow Analysis II. Inventory Control
c. ROI Ill. Working Capital Management
d. M M Theory IV. Overall Profitability
A.
a b c d
II III IV I
B.
a b c d
I II IV III
C.
a b c d
IV III I II
D.
a b c d
I III II IV
Option: A
50) Which one of the following is an example of sources of funds?
A. Decrease in share capital
B. Increase in long-term liabilities
C. Decrease in long-term liabilities
D. Increase in fixed assets
Option: B
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