The debt-equity ratio is calculated as: MCQ with Answer and Explanation
Question
Report Error
Discuss this Question (0)
Practice More Accountancy and Book Keeping Questions
Question #1
Report Error
The 'Secretarial Audit' is mandated for:
Correct Answer: Option B
Explanation:
As per Section 204 of Companies Act, 2013, secretarial audit is mandatory for listed and other prescribed companies.
As per Section 204 of Companies Act, 2013, secretarial audit is mandatory for listed and other prescribed companies.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #2
Report Error
A 'High Current Ratio' indicates:
Correct Answer: Option A
Explanation:
Very high current ratio may indicate idle current assets, not necessarily good.
Very high current ratio may indicate idle current assets, not necessarily good.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #3
Report Error
A: Interest on capital is allowed only out of profits. R: If the firm incurs a loss, no interest on capital is allowed. Choose the correct option.
Correct Answer: Option B
Explanation:
Interest on capital is an appropriation of profit, not a charge against profit. Therefore, it is only allowed if the firm makes a profit. If there is a loss, it is not allowed. R correctly explains A.
Interest on capital is an appropriation of profit, not a charge against profit. Therefore, it is only allowed if the firm makes a profit. If there is a loss, it is not allowed. R correctly explains A.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
No comments yet. Be the first to start the discussion!