The 'Stratified Sampling' in audit is used to: MCQ with Answer and Explanation
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Question #1
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Ind AS (Indian Accounting Standards) are converged with:
Correct Answer: Option A
Explanation:
To align with global practices, India developed Ind AS which are substantially converged with IFRS.
To align with global practices, India developed Ind AS which are substantially converged with IFRS.
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Accountancy and Statistics
Accountancy and Book Keeping
Question #2
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A company's earnings before interest and tax (EBIT) is ₹2,00,000. It has 12% debentures of ₹5,00,000. The interest coverage ratio is:
Correct Answer: Option B
Explanation:
Interest = 12% of 5,00,000 = 60,000. Interest coverage ratio = EBIT / Interest = 2,00,000 / 60,000 = 3.33 times.
Interest = 12% of 5,00,000 = 60,000. Interest coverage ratio = EBIT / Interest = 2,00,000 / 60,000 = 3.33 times.
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Accountancy and Book Keeping
Question #3
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A: A current ratio of 2:1 is generally considered ideal. R: It indicates that current assets are twice the current liabilities, ensuring good short-term liquidity. Choose the correct option.
Correct Answer: Option A
Explanation:
A current ratio of 2:1 is a standard benchmark for short-term solvency. It means the firm has double the current assets to cover its current liabilities, providing a safety margin. R correctly explains A.
A current ratio of 2:1 is a standard benchmark for short-term solvency. It means the firm has double the current assets to cover its current liabilities, providing a safety margin. R correctly explains A.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
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