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