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Dr.G.R.Damodaran College of Science

(Autonomous, affiliated to the Bharathiar University, recognized by the UGC)Re-
accredited at the 'A' Grade Level by the NAAC and ISO 9001:2008 Certified
CRISL rated 'A' (TN) for MBA and MIB Programmes

III B.Com PA [2017 - 2020]

SEMESTER : VI
ELECTIVE III: BUSINESS FINANCE : 618 V1
Multiple Choice Questions.

1. Business finance refers to ...... and ........ employed in a business

A. money
B. credit
C. both a & b
D. none of the above
ANSWER: C

2. Business finance includes ........

A. procurement of funds and utilization of funds
B. management of funds
C. allocation
D. Insurance
ANSWER: A

3. Funds are required for the ..........

A. purchase of land & building
B. purchase of machinery
C. purchase of other fixed asset
D. all of the above
ANSWER: D

4. Business finance includes.............

A. long term finance
B. short term finance
C. medium term finance
D. all of the above
ANSWER: D

5. Business finances deals only with .............................of money

A. investment
B. deposit
C. savings
D. allocation
ANSWER: A

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6. Business finances is concerned with _________ funds and _______ funds from different sources.
A. estimation of funds
B. raising of funds
C. short term finance
D. both a & b
ANSWER: D

7. __________ is concerned with the acquisition, financing, and management of assets with some overall
goal in mind
A. Financial management
B. Profit maximization
C. Agency theory
D. Social responsibility
ANSWER: A

8. __________ is concerned with the maximization of a firm's earnings after taxes.

A. Shareholder wealth maximization
B. Profit maximization
C. Stakeholder maximization
D. EPS maximization
ANSWER: B

9. ___________________is the most appropriate goal of the firm.

A. Shareholder wealth maximization.
B. Profit maximization.
C. Stakeholder maximization.
D. EPS maximization.
ANSWER: A

10. ________is a simply the amount of cash coming in to a business.

A. cash flow
B. inflow
C. both a and b
D. none of the above.
ANSWER: A

11. Money value_____________a period of time.

A. decrease
B. increase
C. both a and b
D. none of these.
ANSWER: A

12. __________________is the cost associated with taking one action over another
A. opportunity cost
B. accounting cost
C. Profit maximization.

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D. none of these
ANSWER: A

13. __________is a type of business funding

A. Financial management
B. finance
C. venture capital
D. equity finance
ANSWER: D

14. ____________is source of business financing.

A. venture capital
B. dept financing
C. equity finance
D. investment
ANSWER: A

15. The financial decision making that relates to current assets or short term asset is known as
__________________
A. working capital
B. non-working capital
C. venture capital
D. all of the above
ANSWER: A

16. In what order should current assets be present on a statement of financial position?
A. cash, bank, trade receivables, inventories
B. trade receivables, bank, cash, inventories
C. inventories, cash, bank, trade receivables
D. inventories, trade receivables, bank, cash
ANSWER: D

17. If value of opening inventories increases, what happens to the value of gross profit?
A. decreases
B. increases
C. stays the same
D. gets closer to net profit
ANSWER: A

18. What does the statement of comprehensive income show?

A. The liquidity position of a business at a point in time
B. The value of assets bought by a business over a period point in time
C. The profit or loss made by a business over a period of time
D. The value of a business at a point in time
ANSWER: C

19. Depreciation is applied to non-current assets in the statement of financial position in order to
A. Show a profitability valuation of the non-current assets

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B. Show a true and fair value of the non-current assets

C. Show how the non-current assets are affected by inflation
D. Show what the non-current assets could make if leased out
ANSWER: B

20. Which of these is NOT a limitation of ratio analysis:

A. They are calculated on past data and there are may not be a true reflection of the business current
performance
B. Financial records may have been manipulated and there are the ratios calculated could be based on
potentially misleaked
C. Ratios only consider qualitative matters, making than hard to calculate
D. inter-firm comparisons can be difficult to not firms report their performance/ generate accounts in the
way
ANSWER: C

21. What would be the most likely impact on trade receivables days if invoice discounting was offered to
and accepted by a large customer of a business?
A. Trade receivables days would no longer exist
B. Trade receivables days would reduce
C. Trade receivables days would increase
D. Trade receivable days would not be affected
ANSWER: B

22. ___________in accounting, is when the costs to acquire an asset are expensed over the life of that asset
rather than in the period it was incurred?
A. Purchasing.
B. Capitalization.
C. Selling.
D. Financing
ANSWER: B

23. Capitalization is the sum of a corporations stock, long term debts &________?
A. Liquid Liability
B. Retained earnings
C. Fixed asset.
D. Short term debts.
ANSWER: B

24. Overcapitalization occurs when earnings are not enough to cover the________?
A. Budgeting.
B. Financial management.
C. Cost of capital
D. Socialization.
ANSWER: B

25. Capitalization is of _______ types?

A. 1
B. 2

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C. 3
D. 4
ANSWER: C

26. __________ is a situation in which actual profits of a company are not sufficient enough to pay interest
on debentures, on loans and pay dividends on shares over a period of time?
A. Under capitalization
B. Over capitalization
C. Market capitalization
D. None of the above
ANSWER: B

27. An undercapitalized company situation arises when the estimated earnings are ____________ as
compared to actual profits?
A. Very low
B. Very high
C. Standard.
D. None of the above
ANSWER: B

28. _________ refers to number of outstanding shares multiplied by share price

A. Capitalistion
B. Budgeting
C. Financing
D. Selling
ANSWER: A

29. In cost thoery, there are ________ types of costs associated with production
A. 1
B. 2
C. 3
D. 4
ANSWER: B

30. Types of cost associated with production in cost theory ________.

A. Direct & Indirect cost
B. Product & Period cost
C. Fixed & Variable cost
D. Controllable & Uncontrollable cost
ANSWER: C

31. __________ theory assumes that enterprise is expected to make profit

A. Cost
B. Earnings
C. Finance
D. Capitalisation.
ANSWER: B

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32. The capitalisation of company or its value is equal to the capitalised value of its estimated ________.
A. Finance
B. Budget
C. Earnings
D. Cost.
ANSWER: C

33. _______ is an asset with artificially inflated value.

A. Capital
B. Watered stock
C. Cost.
D. None of the above
ANSWER: B

34. According to _______ A company is over capitalised when its earnings are not large enough to yield a
fair return on the amount of stock and bonds that have been issued or when the amount of securities
outstanding exceeds the current value of the asset.
A. Bonneville
B. Gerstenberg
C. Deway
D. Kelly.
ANSWER: B

35. Buying assets of ______ value at higher prices.

A. Higher
B. Lower
C. Equal
D. None of the above.
ANSWER: B

36. Procurement of funds at high rate of interest will adversely affect the company resulting in _______.
A. Under capitalism
B. Over capitalism
C. Both a and b
D. None of the above
ANSWER: B

37. Capitalisation refers to the _______ value of stock & bonds outstanding.
A. Trading
B. Profit & loss
C. Balance sheet
D. Cash flow
ANSWER: C

38. According to _______ theory, a firm should be capitalised on the basis of expected earnings of the
firm.
A. Cost theory
B. Earnings theory

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C. Cost & earnings theory

D. None of the above.
ANSWER: B

39. ______ define capitalisation as the sum of the par value of the stocks & bonds outstanding.
A. Gerstenberg
B. Guthman & Dougall
C. Walker & Baughn
D. Bonneville & Dewey.
ANSWER: B

40. Financial planning objectives is very effective in reduction of financial losses. In these objectives
signifies ________________.
A. not determining capital requirement for non-trading activity.
B. not determining capital structure for non-trading activity.
C. framing financial policies for trading activity.
D. framing rules and regulation for trading activity.
ANSWER: C

41. Financial planning is the process of framing _______________.

A. objectives & policies
B. procedures & program
C. program and budget.
D. all the above
ANSWER: D

42. Financial planning is mostly plan for a period of short-term or long-term. In this, long-term includes a
period of ____________.
A. less than 6 months
B. less than 9 months
C. within 1 year
D. more than 2 years
ANSWER: D

43. Tax evasion is illegal but tax minimization is legal. Thus you can reduce your tax liability by way of
_______________ effectively.
A. Tax planning
B. Tax budgeting
C. Tax financing
D. none of these
ANSWER: A

44. In case of death or during life time ______________ can be transfer to either heirs or to the charities.
A. Estate
B. Pension
C. Property
D. All the above
ANSWER: A

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45. Financial advisor and financial planner which implies same meaning
A. false
B. true
C. none of these
D. neither a nor b
ANSWER: B

46. CFP professional set successful realistic financial and personal goals. In this CFP signifies
________________ professionals
A. Certified Framework Planner
B. Certified Financial Planner
C. Certified Functional Planner
D. none of the above
ANSWER: B

47. In financial planning _________ or _________ planning can be achieved with real estate planning.
A. tax or insurance
B. cash flow or investment
C. wealth creation or retirement
D. tax or budget
ANSWER: C

48. Which of the following is not a service offered by financial planner?

A. provide estate planning advice
B. help planning your retirement
C. help creating a budget
D. none of these
ANSWER: D

49. Financial advisor advises to invest in term deposit, GIC and mutual fund. In this GIC signifies
_______________.
A. General Insurance Certificates
B. General Investment Certificates
C. Guaranteed Investment Certificates
D. None of these
ANSWER: C

50. What type of information will financial advisers ask to client for financial plan ?
A. total annual investment
B. your risk tolerance
C. neither a nor b
D. both a & b
ANSWER: D

51. If you plan on working with a financial advisor which of the following is important.
A. kinds of service the advisor provides
B. cost of service

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C. neither a nor b
D. both a & b
ANSWER: D

52. In financial planning, most high option price will lead to ________.
A. longer option period
B. smaller option period
C. lesser price
D. higher price
ANSWER: A

53. A type of asset in which a contact holder has rights to sell an asset at specific period for predetermining
price is classified as _____________
A. option
B. written contract
C. determined contract
D. featured contract
ANSWER: A

54. Financial planning formula max current price of stock strike price zero is used to calculate
A. option return rate
B. exercise value
C. option value
D. stock value
ANSWER: B

55. In financial planning a higher strike price leads to call option

A. price is higher
B. rate is lower
C. price is lower
D. rate is higher
ANSWER: C

56. Sellers of options in financial markets are classified as

A. expiry writer
B. option writer
C. contract writer
D. bond writer
ANSWER: B

57. What is the typical commission rate for a single premium investment?
A. 7% - 10%
B. 4% - 6%
C. 15% - 20%
D. 25% - 30%
ANSWER: B

58. Identify the term for the definition the standard deviation of the (arithmetic) average return.

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A. Correlation coefficient
B. Total return.
C. Risk.
D. Capital gain.
ANSWER: C

59. Risk management of morbidity refers to

A. investor pessimism.
B. longevity.
C. life assurance.
D. health-related insurances
ANSWER: B

60. Soft data in the financial plan includes

A. religious beliefs
B. income
C. age.
D. state of health
ANSWER: A

61. Marketable securities are primarily

A. short-term debt instruments
B. short-term equity securities
C. long-term debt instruments
D. long-term equity securities
ANSWER: A

62. Time consumed in clearing a check through the banking system

A. Processing float
B. Deposit float
C. Collection float
D. Availability float
ANSWER: D

63. Commercial paper is essentially

A. another term for a junk bond
B. a short-term unsecured corporate IOU
C. an intermediate-term corporate bond
D. a certificate that may be exchanged for a share of common stock at a specified future date
ANSWER: B

64. Incorrect cash flow planning can lead to ________

A. solvency
B. insolvency
C. bankruptcy
D. failure
ANSWER: C

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65. Investment plan is always based on _______

A. savings
B. accumulation
C. expenditure
D. depletion
ANSWER: A

66. ________ plan is for fulfilling long term financial goals

A. cash flow planning
B. tax planning
C. start systematic investment planning
D. retirement planning
ANSWER: C

67. People set financial goals for retirement income due to ________
A. lower inflation and lower standard of living
B. rising inflation and rising standard of living
C. lower inflation and rising standard of living
D. rising inflation and lower standard of living
ANSWER: B

68. Proper tax planning can help to ________ finance savings

A. minimize
B. maximize
C. improve
D. none of the above
ANSWER: B

69. ______ can be achieved with real estate planning

A. Privation
B. Wealth sharing
C. wealth creation
D. competency
ANSWER: C

70. Real estate is considered as a __________ investment option

A. high risk and high return
B. low risk and low return
C. high risk and low return
D. low risk and high return
ANSWER: D

71. Which is not a type of financial planning?

A. cash flow planning
B. strategic planning
C. investment planing
D. insurance planning
ANSWER: B

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72. _____________ is a comprehensive evaluvation of an investors current and future financial state
A. financial penalty
B. financial market
C. financial recompense
D. financial plan
ANSWER: D

73. Concentration banking

A. increases idle balances.
B. moves excess funds from a concentration bank to regional banks.
C. is less important during periods of rising interest rates.
D. improves control over corporate cash.
ANSWER: D

74. Which of the following marketable securities is the obligation of a commercial bank?
A. Commercial paper
B. Negotiable certificate of deposit
C. Repurchase agreement
D. T-bills
ANSWER: B

75. The movement of business data electronically in a structured, computer-readable format.

A. EFT
B. EDI
C. SWIFT
D. CHIPS
ANSWER: D

76. That portion of a firm's total marketable securities portfolio held to take care of probable deficiencies in
the firm's cash account.
A. Free cash segment
B. Controllable cash segment
C. Ready cash segment
D. None of the above
ANSWER: C

77. The most basic requirement for a firm's marketable securities.

A. Safety
B. Yield
C. Marketability
D. finance.
ANSWER: A

78. A non-negotiable check payable to a company account at a concentration bank

A. Payable through draft (PTD)
B. Depository transfer check (DTC)
C. ACH transfer

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D. Repo
ANSWER: B

79. A financial plan is sometimes referred to as

A. investment plan
B. savings plan
C. both a and b
D. budget plan
ANSWER: A

80. A financial planning process is a logical

A. 3
B. 7
C. 8
D. 6
ANSWER: D

81. A financial plan is a comprehensive evaluation of an investors

A. current
B. future
C. past
D. both a and b
ANSWER: D

82. The capital structure is how a firm ______ its overall operation.
A. finance
B. assets and liabilities
C. capital
D. none of these.
ANSWER: A

83. Debt comes in form of _______.

A. debentures
B. shares
C. bond issues
D. both b and c.
ANSWER: C

84. Capital structure can be mixtures of firm ______,________ and _____.

A. long term debt, short term debt
B. common equity , preferred equity
C. both a and b
D. only b.
ANSWER: C

85. Asset structure = _________+__________.

A. current asset+fixed asset
B. fixed asset+current asset

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C. tangible asset+fixed asset

D. intangible asset+current asset
ANSWER: B

86. The term capital structure should not be confused with _________ and _______.
A. asset structure
B. financial structure
C. both a and b
D. none of the above.
ANSWER: C

87. ________ implies the composition of total assets used by a firm make up of the asset side of balance
sheet of a company.
A. capital structure
B. asset structure
C. asset and liability structure
D. both b and c.
ANSWER: B

88. According to ______ principle, ideal pattern of capital structure tends to minimize cost of financing
and maximize the earnings per share.
A. cost principle
B. risk principle
C. control principle
D. flexibility principle.
ANSWER: A

89. According to _______ principle, management should strive towards achieving such combinations of
securities that the management funds it easier to manage sources of funds in response to major changes in
needs for funds.
A. cost principle
B. risk principle
C. control principle
D. flexibility principle
ANSWER: D

90. According to _______and _______, financial leverage affects both the magnitude and the variability of
earnings per share and return on equity.
A. Ezra Solomon and John prigle
B. Modigiliani and Miller
C. Krause and Litzenberger
D. Baron and Scott.
ANSWER: A

91. In trading on equity when the borrowed amount is relatively large compared to the equity,it is termed as
_____.
A. trading on thick quality
B. trading on thin equity

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C. neither a nor b
D. both a and b
ANSWER: B

92. Which of the following is not advantage in trading on equity?

A. enhance earning
B. high interest rate than earning
C. favourable tax treatment
D. all the above
ANSWER: B

93. Profits and sales of the company are low and loss are high leads to______ situation of a company.
A. insanity
B. bankruptcy
C. both a and b
D. neither a nor b.
ANSWER: B

94. If the newly purchased asset earn less than the interest expense on the new debts, earning of common
stakeholder will_______
A. increase
B. decrease
C. neither a nor b
D. none of these
ANSWER: B

95. Trading on equity have a advantage of ______

A. enhance earning
B. favourable tax treatment
C. neither a nor b
D. both a and b
ANSWER: D

96. Many companies use trading on equity to improve their______

A. to improve company liquidity
B. reduce dept
C. earnings per share
D. to forecast financial plan
ANSWER: C

97. In financial instruments, new debt includes________

A. bonds
B. loans
C. preferred stock
D. all the above
ANSWER: D

98. While giving loan chance of bankruptcy is high in this bankruptcy signify ____ situation.

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A. insanity
B. insolvency
C. both a and b
D. none of these.
ANSWER: B

99. Which of the following is advantage of trading on equity?

A. high return
B. secure investors
C. none of these
D. both a and b
ANSWER: D

100. In capital structure decision, debt-to equity (D/E) ratio is used to analysis_____
A. company turnover position
B. how risky a company is
C. neither a and b
D. both a and b
ANSWER: B

101. Debt and equity capital are use to fund______

A. business operations
B. capital expenditures
C. business acquisitions
D. all the above.
ANSWER: C

102. Cyclical industries are often not suitable for debt, why they are not suitable.
A. too much uncertainty about their ability to repay their debt
B. cash flow profiles are unpredictable
C. none of these
D. both a and b
ANSWER: D

103. Capital structure is how a firm _______ its overall operation and growth by using different sources.
A. finances
B. fund
C. none of these.
D. both a and b
ANSWER: A

104. Cardinal principle deals with______

A. capital structure
B. capital investment
C. none of these
D. both a and b
ANSWER: A

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105. _____ is important for a firm in taking capital budgeting decisions.

A. cost of capital
B. capital investment
C. funds
D. savings
ANSWER: A

106. Calculation of composite cost of capital involves multiplying the _____ of each capital component.
A. cost
B. capital investment
C. capital
D. both a and b
ANSWER: A

107. Which principle deals with the ideal capital structure and that minimize cost of financing?
A. cost principle
B. management principle
C. risk principle
D. none of these
ANSWER: A

108. ____ is considered as the guilty principles of capital structure decision.

A. cost principle
B. effective management
C. capital structure
D. all the above
ANSWER: A

109. The holders of ________are the real owners of the Company

A. equity shares
B. preference shares
C. all the above
D. none of these
ANSWER: A

110. How many types of shares are there?

A. 4
B. 5
C. 3
D. 6
ANSWER: C

111. Name the types of shares.....

A. equity shares
B. preference shares
C. deferred shares
D. all of the above
ANSWER: D

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112. What are the merit of equity shares?

A. provision of long term finance
B. payment of profit
C. rate of dividend
D. all of the above
ANSWER: D

113. What are the classes of preference shares...

A. cumulative preference shares
B. noncumulative preference shares
C. convertible preference shares
D. all the above
ANSWER: D

114. ____are also called founders shares.

A. Equity shares
B. preference shares
C. deferred shares
D. none of the above
ANSWER: C

115. _______________are units of ownership interest in a corporation or financial asset that provide for an
equal distribution in any profits, if any are declared in the form of dividends
A. Shares
B. bonds
C. debentures
D. Stock
ANSWER: A

116. ___________is a fixed income instrument that represents a loan made by an investor to a borrower
A. shares
B. bonds
C. debentures
D. Mutual fund
ANSWER: B

117. Which is dilutive securities?

A. stock
B. warrants
C. both
D. none of the above
ANSWER: C

118. _______is a long term. Bond issues by a company. Or an unsecured loan that a company issues
without a pledge of assets..
A. shares
B. bonds

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C. debentures
D. Stock
ANSWER: C

119. Ordinary share is also called as

A. Owners share
B. Participatory shares
C. Equity shares
D. all the above
ANSWER: D

120. ___________ is one of the important sources of medium- and long-term financing where the owner of
an asset gives another person, the right to use that asset against periodical payments.
A. Lease financing
B. Internal financing
C. External financing
D. None of the above
ANSWER: A

121. __________is a type of bond that the holder can convert into a specified number of shares of common
stock in the issuing company or cash of equal values.
A. convertible bonds
B. non convertible bonds
C. cumulative bonds
D. none of the above
ANSWER: A

122. Government grants is the source of __________

A. Lease finance
B. Project finance
C. Internal finance
D. External finance
ANSWER: B

123. Asset securitization is a form of ________

A. Short term financing
B. Long term financing
C. Lease financing
D. None of the above
ANSWER: B

124. What are the 2 main types of finance?

A. Debt & Equity
B. Preference & equity
C. Conversion & Equity
D. All of the above
ANSWER: A

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125. ________ finance is the finance or capital which is generated internally by the business unlike
finances such as loan which is externally arranged by bank or financial institutions
A. External sources
B. Internal sources
C. Both a & b
D. None of the above
ANSWER: B

126. Neither dividend nor interest is payable on _________ profit

A. Retained
B. Convertible
C. Non convertible
D. Reversible
ANSWER: A

127. ________ is a share which entitles the holder to a fixed dividend , whose payment takes priority over
that of ordinary share dividends
A. Equity shares
B. Preference shares
C. Nominal shares
D. Ordinary shares
ANSWER: B

128. Share allowance account is _______

A. Real A/C
B. Nominal A/C
C. Personal A/C
D. Company A/C
ANSWER: C

129. Proposed dividends is shown in the balance sheet of a company under the head
A. Reserves
B. Provisions
C. Surplus
D. Current liabilities
ANSWER: B

130. Premium on redemption of debentures A/c _______

A. A real A/c
B. A nominal A/c
C. A personal A/c
D. A nominal A/c expenditure
ANSWER: C

131. Capital redemption reserve is utilised to

A. To redeem preference shares
B. To redeem debentures
C. For issue of bonus shares

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D. None of the above

ANSWER: C

132. Deferred shares are also known as ______ shares

A. Founders
B. Equity
C. Preference
D. None
ANSWER: A

133. Return paid on debenture is _______

A. Interest
B. Dividend
C. Commission
D. Tax
ANSWER: A

134. Which of the following has voting rights

A. Share holder
B. Debenture holder
C. Both a & b
D. None of the above
ANSWER: A

135. Business finances are classified based on time period , ownership & control
A. Time period
B. Ownership
C. Control
D. All of the above
ANSWER: D

136. Another very common method to obtain the letter of credit finance is to mortgage a letter of credit for
a bank loan
A. Business loan
B. Home loan
C. Bank loan
D. None of the above
ANSWER: C

137. Temporary overdraft facility is a credit facility where the borrower can withdraw more money from its
bank account than the available balance
A. Permanent overdraft
B. Temporary overdraft
C. Partial overdraft
D. Credit overdraft
ANSWER: B

138. Internal sources & external sources are the two sources of generation of capital

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A. Capital
B. Loan
C. Investment
D. Shares
ANSWER: A

139. During the accounting period, sales revenue is Rs. 25,000 and accounts receivable increases by Rs.
8,000. What will be the amount of cash received from customers for the period?
A. 33,000
B. 25,000
C. 17,000
D. 8,000
ANSWER: C

140. The conflict of interest between stockholders and management is known as

A. Agency problem
B. Interest conflict
C. Management conflict
D. Agency cost
ANSWER: A

141. Which of the following ratios are intended to address the firms financial leverage?
A. Liquidity Ratios
B. Long-term Solvency Ratios
C. Asset Management Ratios
D. Profitability Ratios
ANSWER: B

142. Quick Ratio is also known as

A. Current Ratio
B. Acid-test Ratio
C. Cash Ratio
D. None of the given options
ANSWER: B

143. Which of the following ratios are particularly interesting to short term creditors?
A. Liquidity Ratios
B. Long term Solvency Ratios
C. Profitability Ratios
D. Market Value Ratios
ANSWER: A

144. If a firms debt ratio is 45%, this means _____ of the firms assets are financed by equity financing.
A. 50%
B. 55%
C. 45%
D. None of the given options
ANSWER: B

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145. Which of the following ratios is NOT from the set of Asset Management Ratios?
A. Inventory Turnover Ratio
B. Receivable Turnover
C. Capital Intensity Ratio
D. Return on Assets
ANSWER: C

146. Which of the following statement about bond ratings is TRUE?

A. Bond ratings are typically paid for by a companys bondholders.
B. Bond ratings are based solely on information acquired from sources other than the bond issuer.
C. Bond ratings represent an independent assessment of the credit-worthiness of bonds.
D. None of the given options
ANSWER: C

147. A firm reports total liabilities of Rs. 300,000 and owners equity of Rs. 500,000. What would be the
total worth of the firms assets?
A. 300,000
B. 500,000
C. 800,000
D. 1100,000
ANSWER: C

148. Which of the following measure reveals how much profit a company generates with the money
shareholders have invested?
A. Profit Margin
B. Return on Assets
C. Return on Equity
D. Debt Equity Ratio
ANSWER: C

149. Who of the following make a broader use of accounting information?

A. Accountants
B. Financial Analysts
C. Auditors
D. Marketers
ANSWER: B

150. A portion of profits, which a company distributes among its shareholders, is known as
A. Dividends
B. Retained Earnings
C. Capital Gain
D. None of the given options
ANSWER: A

Staff Name

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Dr Ravi Shankar C.

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