vu acc501 Mid Term - Quiz No.3
vu acc501 Business Finance Quiz
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Question 2: Which of the following is NOT included in a bond indenture?
The basic terms of bond issue
The total amount of bonds issued
A personal profile of the issuer
A description of the security
Question 3: Balance sheet items expressed as percentage of:
Net sales
Total revenue
Total assets
Total liabilities
Question 4: Which of the following is measured by retention ratio?
Operating efficiency
Asset use efficiency
Financial policy
Dividend policy
Question 5: Which of the following terms refers to the costs to store and finance the assets?
Carrying costs
Shortage costs
Storing costs
financing costs
Question 6: Which of the following item provides the important function of shielding part of income from taxes?
Inventory
Supplies
Machinery
Depreciation
Question 9: The projects costs are Rs.1, 500,000. The payback period for this investment would be __________.
1.50 years
2.00 years
2.33 years
3.00 years
Question 10: Nz Corporation reported earning before interest and taxes of Rs.500, 000 for the current year. It has taken a long term loan of Rs.2 million from a local bank @ 10% interest. The tax is charged at the rate of 32%.What will be the saving in taxes due to presence of debt financing in the capital structure of the firm?
Rs.60, 000
Rs.64, 000
Rs.72, 000
Rs.74, 000