vu acc501 Mid Term - Quiz No.13
vu acc501 Business Finance Quiz
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Question 1: If you have Rs. 30 in asset A and Rs. 120 in another asset B, the weights for assets A and B will be __ and __ respectively.
20%; 80%
37%; 63%
63%; 37%
80%; 20%
Question 2: Which of the following refers to the difference between the sale price and cost of inventory?
Net loss
Net worth
Markup
Markdown
Question 3: Which of the following ratios are particularly interesting to short-term creditors?
Liquidity Ratios
Long-term Solvency Ratios
Profitability Ratios
Market Value Ratios
Question 4: When a corporation wishes to borrow from public on a long-term basis, it does so by issuing or selling:
Debt securities or bonds
Common Stocks
Preferred Stock
All of the given options
Question 5: You have Rs. 1,000 that you want to save. If four different banks offer four different compounding methods for interest, which method should you choose to maximize your Rs. 1,000?
Compounding quarterly
Compounding monthly
Compounding semi-annually
Compounding annually
Question 6: In corporate form of business, what is the objective of shareholder?
Maximize current year income
Delay in payment to supplier
Reduce the expenditure on inventory maintenance
Maximization of shareholder wealth
Question 7: If you want to evaluate the performance of an organization, which one of the following ratios will be helpful to you in evaluating the performance of an organization?
Return on short as well as long term investments
Return on equity and return on debt
Return on equity and profit margin
All of the given options
Question 8: Decisions about how to raise money and what to do with it are part of which of the following?
Business Finance
Change management
Costing for accounting
All of the given options
Question 9: The alternative name used for Interest Coverage Ratio is __________.
Time interest earned
Cash coverage ratio
Profit margin ratio
None of the given option
Question 10: Which of the expenses in given options is not a cash outflow for the firm?
Depreciation
Dividends
Interest payments
Taxes
