vu acc501 Mid Term - Quiz No.21
vu acc501 Business Finance Quiz
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Question 1: A group of assets such as stocks and bonds held by an investor.
Portfolio
Capital Structure
Budget
None of the above
Question 2: Which of the following is(are) the basic area(s) of Finance?
Financial institutions
International finance
Investments
All of the given options
Question 3: Which one of the following is NOT a liquidity ratio?
Current Ratio
Quick Ratio
Cash Coverage Ratio
Cash Ratio
Question 4: Rehan Corporation is dealing in agriculture products. Its annual gross sales are Rs.1975 millions. Out of which 34% are on cash basis. Their past collection experiences show that it has an average collection period of 76 days. What would be the balance of accounts receivable at the end of the year?
Rs.251.415 millions
Rs.261.415 millions
Rs.271.415 millions
Rs.281.415 millions
Question 5: Which of the following illustrates the use of a hedging (or matching) approach to financing?
Short-term assets financed with long-term liabilities.
Permanent working capital financed with long-term liabilities.
Short-term assets financed with equity.
All assets financed with a 50 percent equity, 50 percent long-term debt mixture
Question 6: Which of the following type of risk can be eliminated by diversification?
Systematic Risk
Market Risk
Unsystematic Risk
None of the given options
Question 7: The average time between purchasing or acquiring inventory and receiving cash proceeds from its sale is called __________.
Operating Cycle
Cash Cycle
Receivable period
Inventory period
Question 8: Period costs include which of the following?
Selling expense
Raw material
Direct labor
Manufacturing overhead
Question 9: Which of the following risk can be eliminated by diversification?
Systematic Risk
Unsystematic Risk
A & B
None of the given options
