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Question: What is the primary purpose of accounting standards?Options: To ensure consistency in fina..
Question: What is the purpose of preparing final accounts?Options: To determine the financial positi..
Question: Which of the following accounts would be included in a trial balance?Options: RevenueExpen..
Question: What is the journal entry to record the purchase of inventory on credit?Options: Debit Inv..
Question: What does a low gross profit margin indicate?Options: High production costsStrong pricing ..
Question: Which ratio would you use to assess a company\'s ability to cover its long-term obligation..
Question: What is the effect of straight-line depreciation on financial statements?Options: Increase..
Question: Which accounting standard requires companies to disclose their accounting policies?Options..
Question: Which of the following is NOT a component of the acid-test ratio?Options: CashAccounts rec..
Question: What does a high inventory turnover ratio suggest?Options: Slow-moving inventoryEfficient ..
Question: If a company has a debt to equity ratio of 1.5, what does this indicate?Options: The compa..
Question: Which accounting ratio indicates how effectively a company is using its assets to generate..
Question: What is the primary purpose of calculating the current ratio?Options: To assess profitabil..
Question: What is the impact of accumulated depreciation on the balance sheet?Options: Increases tot..
Question: Which of the following is NOT a component of the current ratio?Options: CashAccounts Recei..
Question: What is the primary focus of IAS 2?Options: Revenue RecognitionInventory ValuationFinancia..
Question: Which method of inventory valuation assumes that the oldest inventory items are sold first..
Question: What does the debt to equity ratio indicate?Options: Profitability of the companyFinancial..
Question: Which ratio is used to assess a company\'s liquidity?Options: Debt to Equity RatioCurrent ..
Question: What is the effect of an inventory write-down on the financial statements?Options: Increas..
Question: Which accounting standard governs the recognition of revenue?Options: IAS 1IFRS 15IAS 2IFR..
Question: What is the primary purpose of a trial balance?Options: To prepare financial statementsTo ..
Question: Which of the following is a measure of a company\'s operational efficiency?Options: Return..
Question: What does a negative return on equity (ROE) signify?Options: Company is profitableCompany ..
Question: Which ratio is used to assess a company\'s efficiency in managing its inventory?Options: I..
Question: What is the formula for calculating the gross profit margin?Options: (Sales - Cost of Good..
Question: Which accounting standard is primarily concerned with the presentation of financial statem..
Question: What does the price-to-earnings (P/E) ratio indicate?Options: Company\'s profitabilityMark..
Question: Which of the following is NOT a liquidity ratio?Options: Current RatioQuick RatioDebt to E..
Question: What does a high debt to equity ratio indicate?Options: Low financial riskHigh financial r..
