Reference no: EM131794551

1. In the calculation of return on shareholders investments the referred investment deals with

A. All reserves

B. Preference and equity capital only

C. All appropriations

D. All of the above

2: Which of the following is an advantage of standard costing?

A. Measuring efficiency

B. Facilitates cost control

C. Determination of variance

D. All of the above

3: The following item is shown in profit and loss appropriation account.

A. Dividends declared

B. Discount of issue of shares

C. Non-operating expenses

D. Current assets

4: The assets of a business can be classified as

A. Only fixed assets

B. Only current assets

C. Fixed and current assets

D. None of the above

5: Which of the following is the test of the long term liquidity of a business?

A. Interest coverage ratio

B. Stock turnover ratio

C. Operating ratio

D. Current ratio