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FINANCIAL MANAGEMENT

Total questions: 10

Worksheet time: 10mins

Name
Class
Date
1.

EBIT stands for

a)

Earnings before Interest and Tax

b)

Earnings before Interest and Tariff

c)

Earn before Interest and Tax

d)

Earnings before Investment and Tax

2.

Operating leverage =

a)

(A) Contribution x Earnings before interest and tax

b)

B) Contribution / Earnings before interest and tax

c)

(C) Earnings before interest and tax / Contribution

d)

(D) Earnings before interest and tax + Contribution

3.

Break-even point is that level of sales revenue at which there is ________

a)

(A) Profit

b)

(B) Loss

c)

(C) No profit no loss

d)

(D) None of the above

4.

External sources of funds are

a)

(A) Funds from long term loans

b)

(B) Sale of fixed assets

c)

(C) Both (A) and (B)

d)

(D) None of the above

5.

IF THE SALES ARE RS 50,00,000 AND VARIABLE COSTS ARE 30,00,000

a)

CONTRIBUTION RS 80,00,000

b)

CONTRIBUTION RS 150,00,000

c)

CONTRIBUTION RS 15,00,000

d)

NONE OF THE ABOVE

6.

CAPITAL STRUCTURE DENOTES THE COMPOSITION OF

a)

SHARE CAPITAL

b)

LONG TERM AND SHORT TERM DEBTS

c)

DEBT AND EQUITY

d)

RESERVES AND SURPLUS

7.

BANK OVERDRAFT IS A FORM OF

a)

SHORT TERM FUNDS

b)

LONG TERM FUNDS

c)

BOTH

d)

NONE OF THE ABOVE

8.

FINANCING DECISIONS RELATE TO THE

a)

DIVIDEND DECISIONS

b)

ASSETS PROCUREMENT

c)

RESREVE BUILDING

d)

ACQUISITION OF CAPITAL

9.

IF THE SALES OF A FIRM IS RS 10,00,000 AND CONTRIBUTION IS RS 2,00,000 THEN VARIABLE COSTS ARE

a)

RS 5,00,000

b)

RS 8,00,000

c)

RS 12,00,000

d)

RS 20,00,000

10.

CALCULATE THE FIXED EXPENSES IF CONTRIBUTION IS RS 15,00,000 AND EBIT IS RS 10,00,000

a)

RS 5,00,000

b)

RS 25,00,000

c)

RS -(5,00,000)

d)

NONE OF THE ABOVE