If the asset turnover and profit margin of a company are 1.85 and 0.35 respectively, the return on investment is.

Related Mcqs:

1. Riaz holds an average inventory of 36,000(CP) with an inventory turnover of 5 times. If the firm makes a gross profit of 25% on sales, find the total sales of the company.

   A. 2,40,000
   B. 2,10,000
   C. 2,00,000
   D. 1,80,000

2. An asset must be _______ by the business to be shown as an asset in its “balance sheet”

   A. Possessed
   B. Owned
   C. Controlled
   D. Used

3. Which of the following statements is true with regard to written down value method of depreciation?
   i. The rate at which the asset is written off reduces year after year
   ii. The amount of depreciation provided reduces from year to year
   iii. The rate of depreciation as well as the amount of depreciation reduce year after year
   iv. The value of the asset gets reduced to zero over a period of time

   A. Only (i) above
   B. Only (ii) above
   C. Both (i) and (ii) above
   D. (i),(ii) and (iii) above

4. A company is currently operating at 80% capacity level. The production under normal capacity level is 1,50,000 units. The variable cost per unit is ` 14 and the total fixed costs are ` 8,00,000. If the company wants to earn a profit of ` 4,00,000, then the price of the product per unit should be

   A. 37.50
   B. 38.25
   C. 24.00
   D. 35.00

5. Any gain on the sale of non-current assets should be _________ from the net profit and the loss must be _________to the net profit in determining fund from operation?

   A. Added, Reduced
   B. Added, Added
   C. Deducted, Added
   D. Deducted, Deducted

6. Average Accounting Return is a measure of accounting profit relative to:

   A. Book value
   B. Intrinsic value
   C. Cost
   D. Market value

7. An asset posses which of the following?

   A. Future economic benefits for the business
   B. All kind of benefits for the business
   C. Expenses for the business
   D. Merits and Demerits for the business

8. Identify the asset from the following:

   A. Cash and cash equivalent
   B. Creditors
   C. Notes payable
   D. Bank loan

9. Which of the following factors are primarily considered to determine the economic life of an asset?

   A. Passage of time, asset usage, and obsolescence
   B. Tax regulations and SEBI guidelines
   C. Tax regulations and asset usage
   D. SEBI guidelines and Asset usage

10. Which of the following are/is a current asset?

    A. Sundry Debtors
    B. Stock
    C. Prepaid insurance
    D. All of A. B. and C. above