The accounting equation is based on which concept? MCQ with Answer and Explanation
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Question #1
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In financial statement analysis, the current ratio is calculated as:
Correct Answer: Option D
Explanation:
Current ratio = Current assets / Current liabilities, measuring short-term liquidity.
Current ratio = Current assets / Current liabilities, measuring short-term liquidity.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #2
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The 'Recoverable Amount' is the higher of:
Correct Answer: Option A
Explanation:
Recoverable amount = higher of (fair value less costs of disposal) and (value in use).
Recoverable amount = higher of (fair value less costs of disposal) and (value in use).
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #3
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A 'Contra Entry' is recorded in:
Correct Answer: Option A
Explanation:
Contra entries (like cash deposited into bank) involve both cash and bank, recorded in cash book.
Contra entries (like cash deposited into bank) involve both cash and bank, recorded in cash book.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
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