vu acc501 Final Term - Quiz No.4
vu acc501 Business Finance Quiz
This quiz belongs to book/course code vu acc501 Business Finance of vu organization. We have 30 quizzes available related to the book/course Business Finance. This quiz has a total of 10 multiple choice questions (MCQs) to prepare and belongs to topic Final Term. NVAEducation wants its users to help them learn in an easy way. For that purpose, you are free to prepare online MCQs and quizzes.
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Question 1: __________ can be considered as a snapshot of a company's financial position?
Income Statement
Balance Sheet
Cash Flow Statement
Owner's Equity Statement
Question 3: Which of the following is a special case of annuity, where the stream of cash flows continues forever?
Ordinary Annuity
Special Annuity
Annuity Due
Perpetuity
Question 4: The accounting definition of income is:
Income = Current Assets - Current Liabilities
Income = Fixed Assets - Current Assets
Income = Revenues - Current Liabilities
Income = Revenues - Expenses
Question 5: Which of the following is measured by profit margin?
Operating efficiency
Asset use efficiency
Financial policy
Dividend policy
Question 6: All of the following are the features of privately placed bonds EXCEPT:
Pay regular interest payments as decided
Pay principle amoumt at the time of maturity
Offered to general public
Cost of bonds considered as cost of doing business
Question 7: Mr. Ali has an opprtunity to invest Rs. 45,000 in a local bank at 13% compound interest rate for 6 years. What amount he will receive after 6 years?
Rs. 93,690
Rs. 80,100
Rs. 97,500
Rs. 65,770
Question 8: A company issues bonds with a Rs. 1,000 face value. What is the coupon rate if the coupon payments of Rs. 60 are paid every 6 months?
3 percent
6 percent
9 percent
12 percent
Question 9: Which one of the following formula will be used to calculate profit margin ratio?
Profit Margin Ratio = Sales / Net income
Profit Margin Ratio = Net income / Sales
Profit Margin Ratio = Net income / CGS
Profit Margin Ratio = Net income / Operating profit
Question 10: The difference between an investments market value and its cost is called the __________ of the investment.
Net present value
Economic value
Book value
Future value
