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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 abilitto generatearnings acompared titexpenses and other relevant costincurred during a specific period of time?
Select correct option:
Liquidity Ratios
Leverage Ratios Profitability RatioMarket Value Ratios
83. A company having a current ratiof 1 will have                net working capital.
Select correct option:
Positive Negativzero
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 taddress the firms 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 followinitem(s) is(are) not included while calculating
Operating Cash Flows? Select correct optionDepreciation
Interest
Expenserelated to firmfinancing of itassets
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 wisheto borrow from public on a long-term basis, it
does sbissuing or selling:
Select correct option:
Debt securities or bonds lec 17
Common Stocks
Preferred Stock
All of thgiven options
90. In which typof market, used securities are traded?
Select correct option: Primarmarket
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 followinis (are) a non-cash item(s) ?
Select correct optionRevenue
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 firms 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 Companys 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