The term 'Zero-Based Budgeting' (ZBB) requires: MCQ with Answer and Explanation
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Question #1
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Which of the following is a profitability ratio?
Correct Answer: Option C
Explanation:
Return on Investment (ROI) measures the profitability of the capital employed in the business.
Return on Investment (ROI) measures the profitability of the capital employed in the business.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #2
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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
Question #3
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The 'Accrual Concept' is also known as:
Correct Answer: Option A
Explanation:
Accrual basis is also called mercantile basis, where transactions are recorded when they occur, not when cash is paid/received.
Accrual basis is also called mercantile basis, where transactions are recorded when they occur, not when cash is paid/received.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
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