Accounting and Auditing Page-5

41) Which of the following is least important as a measure of short term liquidity
(A) Debtor ratio
(B) Current ratio
(C) Cash flow from operating activities
(D) Quick ratio

42) The cost of goods and services used up in the process of obtaining revenue are called
(A) Net income
(B) Revenue
(C) Liabilities
(D) Expenses
(E) None of these

43) Which of the following is not an intangible asset?
(A) An investment in marketable securities
(B) A trademark
(C) A patent
(D) None of these

44) In projecting the future profitability of a trading company, investors will be least concerned with changes in
(A) The gross profit rate
(B) The quick ratio
(C) Sales volume
(D) None of these

45) which of the following is ascertained by drawing up an income and expenditure account
(A) Cash in hand
(B) Surplus or Deficiency
(C) Capital Fund
(D) None of these

46) Identify the item that is likely to serve as source document
(A) Trial balance
(B) Income statement
(C) Balance sheet
(D) Invoice from supplier

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