CLD CHENNAI AFM Module C (10 th Oct 2023)

Q. A company has 5 lakh shares and its net profit after tax is ₹ 25 lakh. The current market price of the share is ₹ 70. Find the Price Earning Ratio.

• 12
• 13
• 14
• 15

Q. The following information is given about the company ABC ltd. Calculate the return on capital employed. Particulars Figures in ₹ crores Sales 15000 EBIT 4000 Total Assets 12000 Current Liabilities 2000

• 0.25
• 0.4
• 0.5
• 0.55

Q. From the given data, calculate the current ratio of ABC Ltd: Cash = Rs 70,000 Cash Equivalents = Rs 1,40,000 Stock in trade = Rs 3,40,000 Prepaid expenses = Rs 50,000 Total current liabilities = Rs 2,00,000

• 2:1
• 3:1
• 4:1
• 4:2

Q. Which of the following statements is/are incorrect with respect to ratio analysis? A. Accounting ratios can be classified between traditional and functional ratios. B. Traditional classification is based on financial statements (Balance sheet and profit and loss accounts). C. Inter-statement or composite ratios is an example of a Functional ratio

• A
• B & C ONLY
• C ONLY
• ALL CORRECT

Q. From the given data about XYZ Enterprise, calculate the Acid Test Ratio: Cash = 50,000 Cash Equivalents = 20,000 Short term investment = 10,000 Receivable = 5,000 Other current Assets = 15,000 (excluding prepaid expenses and inventories) Quick Liabilities = 20,000

• 1
• 3
• 4
• 5

The Quick Ratio, also known as the Acid-Test Ratio, includes only ___________ in its calculation, making it a more stringent measure of a company's liquidity.

• Current Assets
• Inventories
• Current Liabilities
• Fixed Assets

If a transaction takes place immediately on (T+ 0) immediately the transaction will be known as ________ in foreign exchange.

• Cash/Ready
• TOM
• SPOT
• Forward

What is the full form of LERMS and when was it introduced in India?

• Jan 1990 (Localized exchange rate management system)
• March 2000 (Localized Exchange revenue Management System)
• March 1992, (Liberalised Exchange Rate Management System)
• April 2020 (Liberalized External Revenue Monetary System)

Central bank displays on the branch notice board that 1US$= Rs 80.60. The quotation indicates what?

• Indirect quotation
• Two-way quotation
• Cross quotation
• Direct quotation

A currency, if cheaper in forward or future value date, is said to be at discount. In case of direct quotation, the discount is deducted from: I: Buying rate II: Selling rate

• only I
• only II
• Both I and II
• None of the above