Correct Answer:
D. 10%
ROA = 50,000 / 500,000 = 10%.
November 13, 2026 · Accounting and Finance MCQs, Financial Management & Analysis MCQs
Net income is Rs. 50,000 and total assets are Rs. 500,000. Return on assets (ROA) is:
Related MCQs
Repayment of a long-term bank loan is classified as a cash flow from:
A.
Operating activities
B.
Investing activities
C.
Non-cash activities
D.
Financing activities
Correct answer is:
D. Financing activities
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What is the main objective of an external audit of financial statements?
A.
To express an opinion on whether the financial statements are prepared, in all material respects, in accordance with the applicable reporting framework
B.
To prepare the financial statements of the entity
C.
To guarantee that the entity will remain profitable in the future
D.
To detect and prevent every fraud in the entity
Correct answer is:
A. To express an opinion on whether the financial statements are prepared, in all material respects, in accordance with the applicable reporting framework
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A contingency fund is:
A.
A fund kept to meet urgent unforeseen expenditure
B.
A fund for planned salaries
C.
A fund for repayment of loans only
D.
A private fund of officers
Correct answer is:
A. A fund kept to meet urgent unforeseen expenditure
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Observation of the client's physical inventory count mainly provides evidence of:
A.
Ownership of inventory
B.
Valuation of inventory at net realizable value
C.
Fraud in payroll
D.
Existence of inventory
Correct answer is:
D. Existence of inventory
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EBIT is Rs. 300,000 and interest expense is Rs. 60,000. The times interest earned ratio is:
A.
0.2 times
B.
4 times
C.
6 times
D.
5 times
Correct answer is:
D. 5 times
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Which of the following is NOT one of Adam Smith's canons of taxation?
A.
Equity
B.
Certainty
C.
Elasticity
D.
Economy
Correct answer is:
C. Elasticity
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