The 'Dividend Payout Ratio' is: MCQ with Answer and Explanation

Question

Share Report Error

The 'Dividend Payout Ratio' is:

A. Dividend / Total assets

B. Dividend per share / Earnings per share

C. Earnings / Dividend

D. Dividend / Sales

Answer: Option B

Solution (By JKSSB Mock Tests)

DPR measures proportion of earnings distributed as dividends.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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Question #1

Which of the following is an indirect tax in India?

A. Corporation tax

B. Income tax

C. GST

D. Wealth tax

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Correct Answer: Option C

Explanation:
GST is an indirect tax on supply of goods and services.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #2

Which of the following is a capital receipt?

A. Sale of old machinery at profit (excess over WDV)

B. Commission earned

C. Dividend received

D. Interest on investment

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Correct Answer: Option A

Explanation:
Sale of fixed asset, even if profit, is a capital receipt; the profit portion may be revenue, but the sale proceeds are capital.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #3

Hidden goodwill at the time of admission of a partner is calculated by comparing:

A. Assets and outside liabilities

B. Total capital based on new partner's share and actual total capital of all partners

C. Super profit and normal rate of return

D. Average profits of last 5 years

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Correct Answer: Option B

Explanation:
Hidden goodwill is the excess of the firm's inferred total capital (based on the new partner's contribution and share) over the actual combined capital balances.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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