A 'High Debtors Turnover Ratio' indicates: MCQ with Answer and Explanation

Question
A 'High Debtors Turnover Ratio' indicates:
A. Slow collection from debtors
B. Large bad debts
C. Excess inventory
D. Efficient collection from debtors
Answer: Option D
Solution (By JKSSB Mock Tests)
Higher ratio means faster collection of receivables.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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Practice More Accountancy and Book Keeping Questions

Question #1
Under the Comptroller and Auditor General's (Duties, Powers and Conditions of Service) Act, 1971, the CAG audits the accounts of:
A. Only the Union Government
B. Union, State Governments, and Government Companies
C. Union, State Governments, Government Companies, and bodies substantially financed by the government
D. Union and State Governments only
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Correct Answer: Option C

Explanation:
The CAG's DPC Act, 1971, empowers the CAG to audit the Consolidated Fund of India and States, government companies, and any other bodies or authorities substantially financed by government grants or loans.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2
Which book of original entry is used for recording the purchase of assets on credit?
A. Journal Proper
B. Cash Book
C. Sales Book
D. Purchases Book
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Correct Answer: Option A

Explanation:
The Purchases Book only records credit purchases of trading goods. Credit purchases of assets are recorded in the Journal Proper.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #3
The 'Zero Base Budgeting' (ZBB) was first introduced in a country by:
A. India
B. UK
C. Japan
D. USA
Discuss
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Correct Answer: Option D

Explanation:
ZBB was popularised in the 1970s in the United States.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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