MANAGEMENT ACCOUNTING

Earnings per share (EPS) is a

• (a) Profitability Ratio

• (b) Turnover Ratio

• (c) Liquidity Ratio .

• (d) None of these

solvency ratio include

• G/P Ratio

• Fixed Assets turnover

• Capital gearing ratio

• P/E ratio

Current ratio indicates

• Ability to meet short term obligations

• Efficiency of Management

• Profitability

• None of these.

The liquid ratio should be around

• 4

• 2

• 5

• 1

The term fund refers to

• Reserves

• Working capital

• Profits

• None of these

Income tax paid is

• current liability

• current asset

• an application of funds

• none of these

Depreciation is

• An external sources of funds

• A non fund item

• An application funds

• None of these

Short term investment is

• A current asset

• A current liability

• An application of funds

• All of these

Cash flow statement in based upon

• Cash basis of accounting

• Accrual basis of accounting

• a and b both

• none of these.

Issue of bonus shares out of reserves

• Increase working capital

• Decrease working capital

• Does not affect working capital

• All of these.