Accounting and Financial Management 39

COEP
Lets Crack Online Exam

Objective Questions and Answers of MBA: Accounting and Financial Management 39

Subject: Objective Questions and Answers of MBA: Accounting and Financial Management 39

Part 39: Objective questions and answers of Accounting and Financial Management

 

Q1. Which of the following is/are the problem(s) encountered in financial statement analysis?

a) Development of benchmarks

b) Window dressing

c) Interpretation of results

d) All of the above

 

Q2. The company's cost of capital is called

a) Leverage rate

b) Hurdle rate

c) Risk rate

d) Return rate

 

Q3. If a company revalues its assets, its net worth:

a) Will improve

b) Will remain same

c) Will be positively affected

d) None of the above

 

Q4. If a firm is using financial/ leverage successfully what would be the impact of doubling operating earnings?

a) The returns on equity will more than double

b) The return on equity will decline by half

c) The return on equity will double

d) The return on equity will increase, but not double

 

Q5. Banks generally prefer debt equity ratio at:

a) 1:1

b) 1:3

c) 2:1

d) 3:1

 

Q6. The ideal quick ratio is

a) 2:1

b) 1:1

c) 5:1

d) None of the above

 

Q7. ______________ are an estimate of a firm's future income and expenses, based on its past performance, its current circumstances, and its future plans.

a) Financial statements

b) Profitability statements

c) Statements of cash flow

d) Forecasts

 

Q8. Short- term financing plans with high liquidity have:

a) High return and high risk

b) Moderate return and moderate risk

c) Low profit and low risk

d) None of the above

 

Q9. The degree of solvency of two firms can be compared by measuring

a) Net worth

b) Tangible net worth

c) Asset coverage ratio

d) Solvency ratio

 

Q10. Ratio analysis can be used to study liquidity, turnover, profitability, etc. Of a firm. What does debt-equity ratio help to study?

a) Solvency

b) Liquidity

c) Profitability

d) Turnover

 

Q11. The overall financial condition of the organization is listed in the

a) Income statement

b) Profit and loss statement

c) Balance sheet

d) Statement of cash flows

 

Q12. Cash receipts from interest and dividends are classified as

a) Financing activities

b) Investing activities

c) Operating activities

d) Either financing or investing activities

 

Q13. The ideal quick ratio is

a) 2:1

b) 1:1

c) 5:1

d) None of the above

 

Q14. There is deterioration in the management of working capital of xyz ltd. What does it refer to?

a) That the capital employed has reduced

b) That the profitability has gone up

c) That debtors collection period has increased

d) That sales has decreased

 

Q15. Current ratio is 4:1.net working capital is rs.30,000. find the amount of current assets.

a) Rs.10,000

b) Rs.40,000

c) Rs.24,000

d) Rs.6,000

 

Q16. Trading & profit & loss account and balance sheet is prepared from

a) Ledger balance

b) Cash and bank balances

c) Cash book and bank book

d) Trial balance

 

Q17. 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

 

Q18. Generally, the most important category on the statement of cash flows is cash flows from

a) Operating activities

b) Investing activities

c) Financing activities

d) Significant noncash activities

 

Q19. Inventory turnover measures the relationship of inventory with:

a) Average sales

b) Cost of goods sold

c) Total purchases

d) Total assets

 

Q20. New Keynesian economists 

a) Believe that the deviations of output below potential output during recessions are socially costly

b) Presume that much unemployment is involuntary

c) Attempt to improve the microeconomic foundations of the traditional Keynesian models not challenge their major premises

d) Both a and c

e) All of the above

 

Part 39: Objective questions and answers of Accounting and Financial Management

 

Q1. Answer d

 

Q2. Answer a

 

Q3. Answer a

 

Q4. Answer a

 

Q5. Answer c

 

Q6. Answer b

 

Q7. Answer d

 

Q8. Answer b

 

Q9. Answer d

 

Q10. Answer a

 

Q11. Answer c

 

Q12. Answer c

 

Q13. Answer b

 

Q14. Answer c

 

Q15. Answer b

 

Q16. Answer d

 

Q17. Answer a

 

Q18. Answer a

 

Q19. Answer b

 

Q20. Answer e

Be the first to comment

Leave a Reply