Which ratio measures the short-term solvency of a firm? MCQ with Answer and Explanation
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Question #1
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When analyzing Cost Accounting data, 'Contribution' is useful for:
Correct Answer: Option D
Explanation:
Contribution (Sales - Variable Cost) is a key metric in marginal costing used for managerial decisions like 'Make or Buy', dropping a product, or accepting special orders.
Contribution (Sales - Variable Cost) is a key metric in marginal costing used for managerial decisions like 'Make or Buy', dropping a product, or accepting special orders.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #2
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The 'Deferred Tax Asset' is recognised when:
Correct Answer: Option D
Explanation:
When taxable income > accounting income, entity will pay more tax now but less in future, creating a deferred tax asset.
When taxable income > accounting income, entity will pay more tax now but less in future, creating a deferred tax asset.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #3
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Which of the following is an indirect tax in India?
Correct Answer: Option C
Explanation:
GST is an indirect tax on supply of goods and services.
GST is an indirect tax on supply of goods and services.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
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