vu acc501 Mid Term - Quiz No.17
vu acc501 Business Finance Quiz
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Question 2: Following are the two cases:
Case I: Mr. A, as a financial consultant, has prepared a feasibility report for a project for ABC Company that the company is planning to undertake. He has suggested that the project is feasible.
Case II: Mr. A, as a financial consultant, has prepared a feasibility report of a project for XYZ Company that the company is planning to undertake. He has suggested that the project is not feasible.
The consultancy fee paid to Mr. A will be considered as:
Case I: Mr. A, as a financial consultant, has prepared a feasibility report for a project for ABC Company that the company is planning to undertake. He has suggested that the project is feasible.
Case II: Mr. A, as a financial consultant, has prepared a feasibility report of a project for XYZ Company that the company is planning to undertake. He has suggested that the project is not feasible.
The consultancy fee paid to Mr. A will be considered as:
Sunk cost in Case I and opportunity cost in Case II
Opportunity cost in Case I and sunk cost in Case II
Sunk Cost in both Case I and Case II
Opportunity cost in both Case I and Case II
Question 3: Suppose Dux Corporation has current assets of $44 Million. Cash is 25% of the total current assets. After one year the cash item increase by 12%.This increase in cash item is a
Source of cash
Use of cash
Neither of the source of cash nor a use of cash
None of the given option
Question 4: While studying the relationship in risk and return, It is commonly known that:
Higher the risk, lower the return
Lower the risk, higher the return
Higher the risk, higher the return
None of the above
Question 5: __________ is a grant of authority by a shareholder to someone else to vote the shareholders share.
Cumulative voting
Straight voting
Proxy voting
None of the given options
Question 7: Which of the following costs are reported on the income statement as the cost of goods sold?
Product cost
Period cost
Both product cost and period cost
Neither product cost nor period cost
Question 8: It is not unusual for a project to have side or spillover effects both good and bad. This phenomenon is called:
Erosion
Piracy
Cannibalism
All of the given options
Question 9: If a firm has a net float less than zero, then which of the following statements is true about the firm.
The firm's disbursement float is less than its collection float.
The firm's collection float is equal to zero.
The firm's collection float is less than its disbursement float.
None of the given options.
Question 10: __________ is concerned with the relationship between the long terms liabilities that a business has and its capital employed.
Gearing
Acid test ratio
Working capital management
All of the given options
