Professional Documents
Culture Documents
Question The factor may provide the following services to the client
Correct It may undertake the credit analysis of the customers of the client , It will
Answer undertake the various book-keeping and accounting activities in relation to the
receivables management , It undertakes the responsibility of following up with
the customers for the purpose of making the collection from the customer
Your Answer It will undertake the various book-keeping and accounting activities in relation
to the receivables management
True/False
Question Liquid assets includes all current assets except Inventories and Prepaid
expenses
Correct True
Answer
Your Answer False
True/False
Question Turnover ratios indicate the efficiency of the organisation to use the various
kinds of assets by converting them in the form of Sales
Correct True
Answer
Your Answer True
True/False
Question The basic limitation of the capital budgeting process lies in this fact that it
involves various estimations
Correct True
Answer
Your Answer True
Correct True
Answer
Your Answer True
Correct Preference Dividend rate is rather modest , Price fluctuation preference shares
Answer is greater than price fluctuation of debentures , Preference shareholders are
vulnerable to arbitrary managerial actions
Your Answer Price fluctuation preference shares is greater than price fluctuation of
debentures
Correct Total Assets / Owners Funds , Fixed Assets / Owners Funds , Current Assets /
Answer Owners Funds
Your Answer Fixed Assets / Owners Funds
True/False
Question A high debt equity ratio may indicate that the financial stake of the creditors is
more than that of the owners
Correct True
Answer
Your Answer True
Multiple Choice Single Answer
Question The Dividend in the form of cash is payable out of the current year's profit after
providing for sufficient amount of
Correct Depreciation
Answer
Your Answer Interest
The ratio which indicates the Debtors turnover ratio Dividend Payment ratio
speed at which the Sundry
debtors are converted in the
form of cash
The ratio which indicates the Capital turnover ratio Debtors turnover ratio
efficiency of the organisation
with which the capital employed
is being utilised
Ratio which measures the Return on Asset Current Assets turnover ratio
profitability of the investments
in a firm
The relation of Net Sales and Working Capital turnover ratio Return on Asset
Working Capital
Correct Excess of real worth of the assets over the aggregate of shares and
Answer debentures outstanding
Your Answer Excess of current assets over current liabilities
True/False
Question Internal rate of return considers time value of money
Correct True
Answer
Your Answer True
Correct The payment of lease rents is the tax deductible expenditure , It is the quickest
Answer method of financing the requirements of long term capital , Avoids risk of
ownership
Your Answer Avoids risk of ownership
Correct Service
Answer
Your Answer Financial
True/False
Question Economic Order Quantity model is a very useful model of determining the order
quantity
Correct True
Answer
Your Answer True
Correct Shareholders
Answer
Your Answer Society
True/False
Question Accounts Receivable is an example of current assets
Correct True
Answer
Your Answer False
Correct the importer can bargain for better trading terms , he is assured to get proper
Answer supply of the goods
Your Answer he is assured to get proper supply of the goods , he can get qualitative goods
True/False
Question Net Present value presupposes that the cash inflows can be reinvested to yield
the return equivalent to the Internal rate of return
Correct False
Answer
Your Answer True
True/False
Question Secured Premium notes did not carry any interest during the first three years
Correct True
Answer
Your Answer False