Correct Answer:
A. 1.5
Quick ratio = (250,000 - 100,000) / 100,000 = 1.5.
November 13, 2026 · Accounting and Finance MCQs, Financial Management & Analysis MCQs
Current assets are Rs. 250,000, inventory is Rs. 100,000 and current liabilities are Rs. 100,000. The quick ratio is:
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Dividends are Rs. 30,000 and net income is Rs. 100,000. The dividend payout ratio is:
A.
70%
B.
3.3%
C.
300%
D.
30%
Correct answer is:
D. 30%
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An appropriation account compares:
A.
Profit with loss
B.
Assets with liabilities
C.
Tax collected with tax assessed
D.
Actual expenditure with the grants or appropriations authorized by the legislature
Correct answer is:
D. Actual expenditure with the grants or appropriations authorized by the legislature
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A pure public good is characterized by:
A.
Non-rivalry and non-excludability
B.
Rivalry and excludability
C.
Rivalry and non-excludability
D.
Excludability only
Correct answer is:
A. Non-rivalry and non-excludability
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An example of an automatic stabilizer is:
A.
Progressive income tax and unemployment benefits
B.
A new infrastructure program
C.
A change in the discount rate
D.
A one-time tax amnesty
Correct answer is:
A. Progressive income tax and unemployment benefits
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The purpose of an Emphasis of Matter paragraph in the auditor's report is to:
A.
Correct a material misstatement in the financial statements
B.
Draw users' attention to a matter properly presented or disclosed that is fundamental to understanding the financial statements
C.
Modify the audit opinion
D.
Replace the opinion paragraph
Correct answer is:
B. Draw users' attention to a matter properly presented or disclosed that is fundamental to understanding the financial statements
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An auditor who prepares the client's accounting records and then audits them faces which threat?
A.
Familiarity threat
B.
Intimidation threat
C.
Self-review threat
D.
No threat at all
Correct answer is:
C. Self-review threat
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