vu acc501 Mid Term - Quiz No.12
vu acc501 Business Finance Quiz
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Question 1: AST Company has a current ratio of 4:3. Current Liabilities reported by the company are Rs. 30,000. What would be the Net Working Capital for the company?
Rs. 40,000
(–Rs. 40,000)
Rs. 10,000
(–Rs. 10,000)
Question 2: Mehran Corporation is dealing in furniture industry. It has an equity multiplier of 1.78 times. The debt to equity ratio would be __________?
0.38 times
0.58 times
0.78 times
0.98 times
Question 3: Which of the following is the process of planning and managing a firms long- term investments?
Capital Structuring
Capital Rationing
Capital Budgeting
Working Capital Management
Question 4: __________ is a special case of annuity, where the stream of cash flows continues forever.
Ordinary Annuity
Perpetuity
Dividend
Interest
Question 5: Which of the following is the return that firms creditors demand on new borrowings ?
Cost of debt
Cost of preferred stock
Cost of common equity
Cost of retained earnings
Question 6: The objective for using the concept of Diversification is to :
Minimize the Risk
Maximize the return
A & B
None of the Above
Question 7: __________ is concerned with the branch of economics relating the behavior of principals and their agents.
Financial management
Profit maximization
Agency theory
Social responsibility
Question 8: The relationship between real and nominal returns is described by the:
M&M Proposition
Capital Asset Pricing Model
Fisher's Effect
BCG Matrix
Question 9: Which of the following is the acronym for GAAP?
Generally Applied Accountability Principles
General Accounting Assessment Principles
Generally Accepted Accounting Principles
General Accepted Assessment Principles
Question 10: __________ of the following statement measures performance over a specific period of time?
Income Statement
Balance Sheet
Cash Flow Statement
Retained Earning Statement
