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Accountancy M.C.Q (1 Marks)

Model Paper 5 · CBSE STD 12 Commerce (CBSE - English Medium). 6 questions.

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M.C.Q (1 Marks)

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6 questions · timed · auto-graded

MCQ 11 Mark
Example of cash flow from financing activity is:
  • A
    cash received from customer
  • B
    receipt of dividend on investment
  • C
    purchase of fixed asset
  • D
    payment of dividend
Answer
(d) payment of dividend
Explanation:
transactions related to share capital are part of financing activites
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MCQ 21 Mark
Pick the odd one out:
  • A
    Proceeds from long-term loans
  • B
    Cash received as royalty
  • C
    Issue of debentures in cash
  • D
    Issue of shares in cash
Answer
(b) Cash received as royalty
Explanation:
Cash received as royalty comes under the head of operating activities and rest are in financing activities.
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MCQ 31 Mark
Is payment for the purchase of fixed assets will be classified as an operating activity for both finance and non-finance company?
  • A
    No these are financing activities
  • B
    Yes these are Operating activities
  • C
    Not to be recorded
  • D
    No these are investing activities
Answer
(d) No these are investing activities
Explanation:
Purchase of fixed assets will be classified as investing activity for both companies (finance and non-finance company). As fixed Assets are Non-Current Investment for company.
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MCQ 41 Mark
Inventory Turnover Ratio is calculated under -------
  • A
    Activity Ratio
  • B
    Profitability Ratio
  • C
    Solvency Ratio
  • D
    Liquidity Ratio
Answer
(a) Activity Ratio
Explanation:
Inventory turnover ratio is calculated under the Activity Ratio.
i.e. Inventory Turnover Ratio = Cost of Revenue from operations or cost of goods sold/Average Inventory. Average inventory is used instead of ending inventory because many company's merchandise fluctuates greatly throughout the year.
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MCQ 61 Mark
XYZ Ltd. wants to assess future earning capacity of its business. It will conduct:
  • A
    external analysis
  • B
    Internal analysis
  • C
    long-term analysis
  • D
    short-term analysis
Answer
(c) long-term analysis
Explanation:
long-term analysis
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M.C.Q (1 Marks) - Accountancy STD 12 Commerce Questions - Vidyadip