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Total questions: 25
Worksheet time: 13mins
The formula for calculating future value (FV) is
FV = PV/(1+r)^n
FV = PV/(1+r)*n
FV = PV x (1+r)^n
FV = PV x (1+r)*n.
What is working capital?
Equity Capital + Retained Earnings
Equity Capital - Total Liabilities
Total Assets - Total Liabilities
Current Assets - Current Liabilities.
Which of the following is not a financing activity?
Repayment of long-term debt
Issuance of equity
Investments in businesses
Payment of dividends
What is the most popular investement decision making tool for cash flow forecast?
Payback Period (PP)
Net Present Value (NPV)
Internal Rate of Return (IRR)
Payback Period (PP)
None
GAAP refers to financial accounting principles that are compulsory in all countries around the globe.
True
False
Which method of capital budgeting called benefit cost ratio?
Pay back period method
Net present value method
Payout period method
Profitability Index method
Which is the traditional method of Capital budgeting?
Accounting Method
Payout Method
Pay back Method
All of the above
Profit maximisation is
It is indicator of economic efficiency
primary objective of business
Measurement of Success of business decisions
All of the above
Which is the Principle of Capital Structure?
Cost and control principle
Risk principle
Both (A) and (B)
None of the above
Capital budgeting involves the
Planning of Purchase
Planning of Sales
Planning of expenditure for assets
All of the above
If the equity shareholder purchases the company shares at more than the face value of the share then what is calculated.
Dividend Yield Ratio
Earnings Yield Ratio
Payout Ratio
Debt Equity Ratio
Which is Time Adjusted Method of Capital Budgeting?
Payout period method
Net present value method
Pay-back period method
Pay-off method
Which is a capital expenditure?
Research and Development Project
Project Generation
Project Expansion
All of the above
Which is the functions of Financial Control?
Audit
Planning for Control
Accounting Functions
All of the above
Dividends are the ------ of a company distributed amongst members in proportion to their shares.
Divisible Profits
Assets with Cash and Bank
Reserve
Undivisible Profits
What do turnover ratios measure?
Efficient employment of Assets
Efficient employment of Debts
Efficient employment of Profits
Efficient employment of Capital
Revenue from sale of products should be reported as part of the earning in which period?
When the cash is collected
When the products sent to the godown
When the sale is made
None of the above
Profit after tax is also termed as
Real Profit
Surreal Profit
Net Profit
Profit
Which of the following is clubbed with Current Assets in the Balance Sheet?
Investments
Contingent liabilities
Loans and advances
Miscellaneous expenses
Which of the following are the approaches to compute the cost of equity shares?
Earning/Price
Dividend/Price
Both a and b
None of the above
____ cost is directly proportional to sales revenue.
Explicit
Variable
Fixed
Semi variable
Debt Equity ratio is also called as
Current ratio
Proprietary ratio
Profit ratio
Turnover ratio
Following are the major classification of liabilitites
Contingent Liability
Term Liability
Current Liability
All the above
Dr.X sent a cheque of Rs 25,000 to PM's relief fund as a personal contribution. Journal entry in his books will be
Drawings A/C Dr 25,000 To Bank A/C 25,000
Drawings A/C Dr 25,000 To Prime Minister's Fund A/C 25,000
Drawings A/C Dr 25,000 To Capital A/C 25,000
Drawings A/C Dr 25,000 To X A/C 25,000
In cost accounting process, cost are ascertained and controlled with respect to the ___ and hence it is pre-requisite.
Records in books of organization
Cost centres
Transactions
Cost accountants
