The 'Price Earning' (P/E) ratio is calculated as: MCQ with Answer and Explanation

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The 'Price Earning' (P/E) ratio is calculated as:

A. Market price / Book value

B. Earnings per share / Market price per share

C. Dividend / Market price

D. Market price per share / Earnings per share

Answer: Option D

Solution (By JKSSB Mock Tests)

P/E ratio indicates how much investors are willing to pay per rupee of earnings.

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

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Question #1

The 'Interim Dividend' is declared by:

A. Board of Directors

B. Government

C. Auditors

D. Shareholders

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Correct Answer: Option A

Explanation:
Interim dividend can be declared by the Board of Directors between annual general meetings.

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Question #2

The rule 'Debit the receiver, Credit the giver' applies to:

A. All accounts

B. Personal accounts

C. Real accounts

D. Nominal accounts

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Correct Answer: Option B

Explanation:
This rule is for personal accounts.

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Question #3

The 'National Pension System' (NPS) for government employees was made mandatory for those joining after:

A. 1 Jan 1991

B. 1 Jan 2015

C. 1 Jan 2004

D. 1 Jan 2010

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Correct Answer: Option C

Explanation:
NPS replaced the old defined benefit pension for central government employees joining on or after 1/1/2004.

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

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