A higher dividend payout ratio indicates that a firm: MCQ with Answer and Explanation
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Practice More Accountancy and Book Keeping Questions
Question #1
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When a fixed asset is sold, any profit on sale is credited to:
Correct Answer: Option B
Explanation:
Profit on sale of fixed asset is a revenue gain, shown in Profit & Loss Account.
Profit on sale of fixed asset is a revenue gain, shown in Profit & Loss Account.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #2
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The term 'Outstanding Expense' is treated as:
Correct Answer: Option C
Explanation:
Outstanding expenses are expenses incurred but not yet paid, making them a current liability for the business.
Outstanding expenses are expenses incurred but not yet paid, making them a current liability for the business.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #3
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In ratio analysis, 'Stock Turnover Ratio' indicates:
Correct Answer: Option B
Explanation:
Stock turnover = Cost of goods sold / Average stock, measuring inventory management efficiency.
Stock turnover = Cost of goods sold / Average stock, measuring inventory management efficiency.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
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