TM class test

Breakeven analysis does not assumes that

• Fixed cost per unit remains unchanged

• Volume of sales is equal to volume of production

• Sales prices is constant

• Variable cost are non-linear

Which one of the following is not an income statement?

• P&L account

• Manufacturing account

• Balance sheet

• All of the above

Which among the following is not a current asset?

• Cash in hand

• Inventory

• Pre-paid expenses

• Accounts payable

Net working capital  is the difference between

• Assets and liabilities of a company

• Current assets and current liabilities of a company

• Long term assets and long term liabilities of a company

• Stockholders' equity and liabilities of the company

FROM THE GRAPH GIVEN WHAT DOES RED LINE REPRESENT

• TOTAL COST

• FIXED COST

• SALES REVENUE

• VARIABLE COST

THE IDEAL CURRENT RATIO OF A FIRM SHOULD BE

• 1:1

• 1:2

• 2:1

• 3:1

A FINANCIALLY HEALTHY FIRM HAS INTEREST COVERAGE RATIO MORE THAN

• 0.5

• 1.5

• 2

• 5

PROFITABILITY RATIO IS DEFINED AS

• PROFIT / SALES

• PROFIT/ CAPITAL EMPLOYED

• PROFIT/FIXED COST

• PROFIT/ WORKING CAPITAL

THE ONLY CORRECT STATEMENT REGARDING, 'BOOK VALUE OF SHARES' IS

• CAN BE NEGATIVE

• CANNOT BE NEGATIVE

• IS ALWAYS MORE THAN MARKET VALUE

• IS ALWAYS LESS THAN MARKET VALUE

In a balance sheet, Assets = Liability + .....................

• Stokholders' equity

• Capital

• Profit

• Taxes