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

Related Mcqs:

1. Which of the following can be considered as the most important phase of accounting cycle and it is the primarily objective of financial accounting?

   A. Identifying transactions
   B. Preparing “T Accounts”
   C. Preparing financial statements
   D. Preparing trial balances

2. The accounting process of gradually converting the unexpired cost of fixed assets into expenses over a series of accounting periods is_________?

   A. Depreciation
   B. Physical deterioration of the asset
   C. Decrease in market value of the asset
   D. Valuation of an asset at a point of time

3. 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

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

   A. 0.65
   B. 0.35
   C. 1.50
   D. 5.29

5. The profit margin = 4.5%, assets turnover = 2.2 times, equity multiplier = 2.7 times then return on assets will be __________?

   A. 0.2673
   B. 26.73 times
   C. 0.094
   D. 0.4 times

6. If the profit margin is equal to 4.5% and the total assets turnover is 1.8% then the return on assets DuPont equation would be _________?

   A. 0.025
   B. 0.081
   C. 0.004
   D. 4 times

7. Which of the following measure reveals how much profit a company generates with the money shareholders have invested?

   A. Profit Margin
   B. Return on Assets
   C. Return on Equity
   D. Debt-Equity Ratio

8. Return on assets = 5.5%, Total assets $3,000 and common equity $1,050 then return on equity would be_________?

   A. $22,275
   B. 15.71%
   C. 1.93%
   D. 1.925 times

9. The value of option issued to call debt is subtracted from rate of return on callable bond to calculate the rate of return on ____________?

   A. contributed bonds
   B. non-callable bonds
   C. callable bonds
   D. discounted bonds

10. The rate of return on non-callable bonds is $890 and value of issuer option is $670 then the return on callable bond is ___________

    A. 0.0133
    B. 1560
    C. 220
    D. 1.33