Correct Answer:
B. 2.0
D/E = 400,000 / 200,000 = 2.
November 13, 2026 · Accounting and Finance MCQs, Financial Management & Analysis MCQs
Total debt is Rs. 400,000 and total equity is Rs. 200,000. The debt-to-equity ratio is:
Related MCQs
A Medium Term Budgetary Framework (MTBF) is:
A.
A multi-year (usually three-year) expenditure planning framework
B.
A monthly cash plan
C.
A tax collection target
D.
A foreign loan agreement
Correct answer is:
A. A multi-year (usually three-year) expenditure planning framework
Do you agree with this answer?
Prime cost is the sum of:
A.
Direct materials and factory overhead
B.
Direct labor and factory overhead
C.
Indirect materials and indirect labor
D.
Direct materials, direct labor and direct expenses
Correct answer is:
D. Direct materials, direct labor and direct expenses
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Actual sales are Rs. 500,000 and break-even sales are Rs. 350,000. The margin of safety is:
A.
Rs. 850,000
B.
Rs. 350,000
C.
Rs. 150,000
D.
Rs. 30,000
Correct answer is:
C. Rs. 150,000
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Under absorption costing, fixed manufacturing overhead is treated as:
A.
A period cost charged fully to the current period
B.
A selling expense
C.
A product cost included in inventory valuation
D.
An abnormal loss
Correct answer is:
C. A product cost included in inventory valuation
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Auditor independence consists of:
A.
Independence of audit fees only
B.
Independence from the auditing standards
C.
Independence of mind and independence in appearance
D.
Independence from the audit working papers
Correct answer is:
C. Independence of mind and independence in appearance
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Unearned (deferred) revenue is reported as:
A.
An asset
B.
Revenue of the current period
C.
An expense
D.
A liability
Correct answer is:
D. A liability
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