vu acc501 Mid Term - Quiz No.22
vu acc501 Business Finance Quiz
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Question 1: If the sales of the AB corporation is Rs.20, 000,000 where as its cost is Rs.12, 000,000 during the same period. Assume the annual tax rate is 37%.Its annual depreciation is Rs.5, 000, 000.The operating cash flow of the organization would be __________.
Rs. 3,810,000
Rs. 4,810,000
Rs. 5,190,000
Rs. 6,890,000
Question 2: Which of the following strategy belongs to restrictive policy regarding size of investments in current assets?
To maintain a high ratio of current assets to sales
To maintain a low ratio of current assets to sales
To less short-term debt and more long-term debt
To more short-term debt and less long-term debt
Question 3: You have a cash of Rs.150, 000. If a bank offers four different compounding methods for interest, which method would you choose to maximize the value of your Rs.150, 000?
Compounded daily
Compounded quarterly
Compounded semiannually
Compounded annually
Question 4: Which of the following statement shows assets, liabilities, and net worth as of a specific date?
Income Statement
Balance Sheet
Owner's Equity Statement
Cash Flow Statement
Question 5: Fee paid to the consultant for evaluating the project is an example of __________.
Opportunity cost
Sunk cost
Decremental cost
None of the given option
Question 6: Which one of the present value factor is larger?
PV of 1 factor for 10%
PV of 1 factor for 12%
Both have the same effect
It cannot be determined
Question 7: Which of the following is an example of capital spending?
Purchase of Fixed Assets
Decrease in Net Working Capital
Increase in Net Working Capital
None of the given options
Question 9: Long-term bonds have __________ risk of loss resulting from changes in interest rates than do short-term bonds.
Less
Zero
More
None of the given options
Question 10: Internal growth rate tell how rapidly:
The firm grows
Sales of the firm grows
Profit of the firm grows
None of the given options
