vu acc501 Mid Term - Quiz No.14
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 Mid 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: The coupon rate of a floating-rate bond is capped and upper and lower rates are called:
Float
Collar
Limit
Surplus
Question 2: __________ refers to the most valuable alternative that is given up if a particular investment is undertaken.
Sunk cost
Opportunity cost
Financing cost
All of the given options
Question 3: Depreciation expense is:
Operating expense
Investing expense
Financing expense
All of the given options
Question 4: Which of the following set of ratios is used to assess a businesss ability to generate earnings as compared to its expenses and other relevant costs incurred during a specific period of time?
Liquidity Ratios
Leverage Ratios
Profitability Ratios
Market Value Ratios
Question 5: Benchmarking is used to establish a standard to follow for:
comparison
identification
calculation
liability
Question 6: Which of the following refers to a conflict of interest between principal and agent?
Management Conflict
Interest Conflict
Agency Problem
None of the given options
Question 7: Time value of money is an important finance concept because:
It takes risk into account
It takes time into account
It takes compound interest into account
All of the given options
Question 8: Which of the following is a series of constant cash flows that occur at the end of each period for some fixed number of periods?
Ordinary annuity
Annuity due
Perpetuity
None of the given options
Question 9: A series of constant cash flows that occur at the end of each period for some fixed number of periods is __________
an ordinary annuity
annuity due
multiple cash flows
perpetuity
Question 10: If a bond sells at a high premium, then which of the following relationships hold true?
Bond Price < Par Value and YTM > coupon rate
Bond Price > Par Value and YTM > coupon rate
Bond Price > Par Value and YTM < coupon rate
Bond Price < Par Value and YTM < coupon rate
