Explore topic-wise MCQs in Bachelor of Business Administration (BBA).

This section includes 237 Mcqs, each offering curated multiple-choice questions to sharpen your Bachelor of Business Administration (BBA) knowledge and support exam preparation. Choose a topic below to get started.

201.

The ratio which shows the proportion of profits retained in the business out of the current year’s profits is

A. retained earnings ratio.
B. pay out ratio
C. earnings per share.
D. price earnings ratio.
Answer» B. pay out ratio
Discussion
202.

The ratio establishes the relationship between profit before interest and tax and fixed interest charges is .

A. interest cover ratio.
B. fixed dividend cover ratio.
C. debt service coverage ratio.
D. dividend yield ratio.
Answer» B. fixed dividend cover ratio.
Discussion
203.

The ratio which indicates earnings per share reflected by the market price is .

A. retained earnings ratio.
B. pay out ratio.
C. earnings per share.
D. price earnings ratio.
Answer» E.
Discussion
204.

The ratio which is calculated to measure the productivity of total assets is

A. return on equity.
B. return on share holders funds.
C. return on total assets.
D. return on equity share holders’ funds.
Answer» D. return on equity share holders’ funds.
Discussion
205.

The ratio which determines the profitability from the shareholder’s point of view is .

A. return on investment.
B. gross profit ratio.
C. return on shareholders funds.
D. operating profit ratio.
Answer» D. operating profit ratio.
Discussion
206.

The ratio which measures the profit in relation to capital employed is known as

A. return on investment.
B. gross profit ratio.
C. operating ratio.
D. operating profit ratio.
Answer» B. gross profit ratio.
Discussion
207.

Prepaid expenses is an example of .

A. fixed assets.
B. current assets.
C. fictitious assets.
D. current liabilities.
Answer» C. fictitious assets.
Discussion
208.

Preliminary expenses is an example of

A. fixed assets.
B. current assets.
C. fictitious assets.
D. current liabilities.
Answer» D. current liabilities.
Discussion
209.

Return on equity is also called

A. return on investment.
B. gross profit ratio.
C. return on shareholders funds.
D. return on net worth.
Answer» E.
Discussion
210.

Fixed assets turnover ratio is a

A. short-term solvency ratio.
B. long-term solvency ratio.
C. profitability ratio.
D. turnover ratio.
Answer» E.
Discussion
211.

Fixed assets ratio is a

A. short-term solvency ratio.
B. long-term solvency ratio.
C. profitability ratio.
D. turnover ratio.
Answer» C. profitability ratio.
Discussion
212.

Current ratio is a

A. short-term solvency ratio.
B. long-term solvency ratio.
C. profitability ratio.
D. turnover ratio.
Answer» B. long-term solvency ratio.
Discussion
213.

Stock turnover ratio is a .

A. turnover ratio.
B. profitability ratio.
C. short term solvency ratio.
D. long term solvency ratio.
Answer» B. profitability ratio.
Discussion
214.

Proprietary ratio is a .

A. short-term solvency ratio.
B. long-term solvency ratio.
C. profitability ratio.
D. turnover ratio.
Answer» C. profitability ratio.
Discussion
215.

Net profit ratio is a .

A. turnover ratio.
B. long term solvency ratio.
C. short term solvency ratio
D. profitability ratio.
Answer» E.
Discussion
216.

The ratios which reveal the final result of the managerial policies and performance is .

A. turnover ratios.
B. profitability ratios.
C. short term solvency ratio.
D. long term solvency ratio.
Answer» C. short term solvency ratio.
Discussion
217.

Return on investment is a .

A. turnover ratios.
B. short term solvency ratio.
C. profitability ratios.
D. long term solvency ratio.
Answer» D. long term solvency ratio.
Discussion
218.

General profitability ratios are based on

A. investment
B. sales
C. a & b
D. none of the above
Answer» C. a & b
Discussion
219.

If sales is Rs 5,00,000 & net profit is Rs 1,20,000 Net profit ratio is

A. 24%
B. 416%
C. 60%
D. none of the above
Answer» B. 416%
Discussion
220.

Profit for the objective of calculating a ratio may be taken as

A. profit before tax but after interest
B. profit before interest &tax
C. profit after interest & tax
D. all the above
Answer» E.
Discussion
221.

The ratio analysis is helpful to management in taking several decisions, but as a mechanical substitute for judgement and thinking, it is worse than useless.

A. true
B. false
C. may be false
D. both a and b
Answer» B. false
Discussion
222.

Determine Working capital turnover ratio if, Current asset is Rs 1,50,000, current liability is Rs 1,00,000 & cost of goods sold is Rs 3,00,000.

A. 5 times
B. 6 times
C. 3 times
D. 1.5 times
Answer» C. 3 times
Discussion
223.

Working capital turnover ratio can be determined by :

A. ( gross profit / working capital )
B. ( cost of goods sold / net sales )
C. ( cost of goods sold / working capital)
D. none of the above
Answer» B. ( cost of goods sold / net sales )
Discussion
224.

Liquidity ratios are expressed in

A. pure ratio form
B. percentage
C. rate or time
D. none of the above
Answer» B. percentage
Discussion
225.

What will be the Gross Profit if , total sales is Rs 2,60,000,cost of net goods sold is Rs 2,00,000 & sales return is Rs10,000 ?

A. 13 %
B. 28%
C. 26%
D. 20%
Answer» E.
Discussion
226.

. Return on properties funds is also known as.

A. return on net worth
B. return on shareholders fun
C. return on the shareholders investment
D. all the above
Answer» E.
Discussion
227.

Which of the following is not included in current assets.

A. debtors
B. stock
C. cash at bank
D. cash in hand
Answer» C. cash at bank
Discussion
228.

Stock is considered as a liquid asset as anytime it can be converted into cash immediately.

A. yes
B. no
C. only yes
D. none of the above
Answer» C. only yes
Discussion
229.

The transaction which increase working capital are ………….. of funds

A. sources
B. application
C. utilization
D. diversion
Answer» B. application
Discussion
230.

Management accounting begins where………………. accounting ends.

A. financial accounting
B. management accounting
C. cost accounting
D. human resource accounting
Answer» D. human resource accounting
Discussion
231.

Cost Accountant should report to the ……………management.

A. top
B. middle.
C. administration
D. lower
Answer» B. middle.
Discussion
232.

Financial Accounting data is primarily meant for …………………

A. external users
B. internal users
C. employees
D. bank
Answer» B. internal users
Discussion
233.

…………………..costs are pre-determined targets adainst which actual results are evaluated.

A. marginal
B. standard
C. actual
D. budgeted
Answer» C. actual
Discussion
234.

Planning is that function of ……………………..which requires an efficient system of decision – making.

A. finance
B. management
C. h.r
D. administration.
Answer» C. h.r
Discussion
235.

……………………..accounting is the adoption and analysis of accounting information and its diagnosis and explanation in such a way so as to assist the decision -makers.

A. financial accounting
B. management accounting
C. corporate accounting
D. human resource accounting
Answer» C. corporate accounting
Discussion
236.

The important objective of …………………..accounting is to organize the accumulated financial data into meaningful information.

A. financial accounting
B. management accounting
C. corporate accounting
D. human resource accounting
Answer» B. management accounting
Discussion
237.

………………………Accounting is concerned with measurement of the cost and value of people for the organization.

A. financial accounting
B. management accounting
C. corporate accounting
D. human resource accounting
Answer» E.
Discussion