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ACC501 Business Finance Solved MCQ's For MID & Final EXAMS Mega File (part 2)
82.
Which of the following
set of ratios is
used to assess a
business's ability to
generate earnings as compared to its expenses
and other relevant costs incurred during a specific period of time?
Select correct option:
Liquidity Ratios
Leverage Ratios Profitability Ratios Market Value
Ratios
83.
A company having a current ratio of 1 will have net working
capital.
Select correct option:
Positive Negative zero
None of the given
options
84. which of the following is not a form of business organization
Select correct option: sole proprietorship
partnership
joint stock company
cooperative
Society
85. Which of the following
ratios are intended to address the firm’s financial
leverage?
Select correct option:
Liquidity Ratios
Long-term Solvency
Ratios Asset Management Ratios
Profitability Ratios
86. The
accounting definition of income is:
Select correct option:
Income = Current Assets - Current Liabilities
Income = Fixed
Assets - Current Assets
Income = Revenues - Current Liabilities
Income
= Revenues - Expenses
87. Which of the following item(s) is(are) not included while
calculating
Operating Cash Flows? Select correct option: Depreciation
Interest
Expenses related to firm’s financing of its assets
All of the given options
88. Suppose market value exceeds
book value by Rs.
250,000. What will be the
after-tax proceeds if there is
a tax rate of 34
percent ?
Select correct option:
Rs. 105,600
Rs. 148,500
Rs. 165,000
Rs. 225,000
Solution=250000*34%=85000
250,000-85000=165000
89. When a corporation wishes to
borrow from public
on a long-term basis, it
does so by issuing or selling:
Select correct option:
Debt securities or
bonds lec 17
Common Stocks
Preferred Stock
All of the given options
90. In which type of market, used securities are traded?
Select correct option: Primary market
Secondary market
Tertiary market
None of the given
options
91. Who of the following make
a broader use of accounting information?
Select correct option:
Accountants
Financial Analysts lec 2
Auditors
Marketers
92. Which of the following is (are) a non-cash item(s) ?
Select correct option: Revenue
Expenses
ACC501 Business Finance Solved MCQ's For MID & Final EXAMS Mega File (part1)
ACC501 Solved MCQ's For MID & Final Exam
1.
Which of the following is an example of positive covenant?
Select correct option:
Maintaining firm’s
working capital at or above
some
specified
minimum level
Furnishing audited financial statements
periodically to the lender
Maintaining any collateral or security in good
condition
Restricting selling
or leasing
assets wrong
question option
d is
negative
and all is positive example
Wrong, wrong,
wrong question it is unfair discipline
2. AST Company’s
debt-to-total assets ratio is 0.45. What is its debt -to-equity
ratio?
Select correct option:
0.101
0.220
0.667
0.818
Reference:(1-0.45=0.55)
=0.45/0.55=0.818
3. What amount a
borrower would
pay at the end of fourth
year
with a 4-year,
12%, interest-only loan
of
Rs. 8,000?
Select correct option:
Rs. 1,360
Rs. 2,000
Rs. 5,625
Rs.
8,960
Reference: 8000*12/100=8960
4. What will be the price per share if there is a
current dividend of Rs. 4.75,
required rate
of
return of 12% and growth rate of 5%?
Select correct option:
Rs. 30.19
Rs. 43.52
Rs. 56.53
Rs.
71.25
Reference: D*1+g/r-g
4.75*(1+0.5/4.75-0.5)=71.25
5. A given rate is
quoted as 9 percent APR, but the EAR is
9.38 percent. What
is the compounding
period?
Select correct option:
Semiannually
Quarterly
Monthly
Daily Reference:(1+APR/m)^m-1
PR=9
M=30
(1+9/30)^30-1=9.38
6. Mr.
Aslam owns 100
shares of a company and there are four
directors
to be
elected. How much
votes Mr.
Aslamwould have as per
cumulative voting
procedure?
Select correct option:
100 votes
200 votes
300
votes
400 votes
Reference: 100*4=400
7. SNT Corporation has policy
of
paying a Rs. 6 per share dividend
every year.
If
this policy is to continue
indefinitely, what will be the
value of a share of
stock at a 15%required rate of return?
Select correct option:
Rs. 30
Rs.
40
Rs. 50
Rs. 60
Reference: 6/0.15=40
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