WorksheetsFinance and Capital Structure Worksheet
Total questions: 20
Worksheet time: 10mins
Which of these factors does NOT affect capital structure of a company?
Tax rate
Business risk
Sales forecast
Cost of borrowing
Which of the following increases working capital?
Purchase of machinery for cash
Issue of debentures for cash
Payment of dividend
Purchase of goods on cash
Trade credit affects working capital by:
Increasing current liabilities
Decreasing fixed assets
Boosting long-term debt
Raising equity
Which of the following is NOT a capital budgeting technique?
Payback Period
Net Present Value
Internal Rate of Return
Break-even Analysis
When the market price of a share is higher than its face value, the share is said to be issued at:
Par
Discount
Premium
Loss
NBFC means:
National Banking Finance Company
Non-Banking Financial Corporation
National Bank for Credit
Non-Banking Fiscal Council
Debenture holders are:
Owners of the company
Employees of the company
Creditors of the company
Promoters of the company
IFRS stands for:
International Finance Reporting Standards
International Financial Reporting Standards
Integrated Financial Reporting System
International Fiscal Reporting Scheme
A high degree of operating leverage indicates:
Low fixed cost
High variable cost
High fixed operating cost
No business risk
Which of the following is a short-term source of finance?
Equity shares
Debentures
Bank overdraft
Retained earnings
Provision for doubtful debts is:
Added to debtors
Shown as contingent liability
Deducted from debtors
Ignored in balance sheet
Which of the following is a financial institution?
RBI
SEBI
LIC
All of the above
The interest paid on debentures is:
Dividend
Profit
Expense
Reserve
Which of the following is a capital budgeting decision?
Payment of wages
Purchase of raw material
Purchase of machinery
Payment of rent
Capital gearing refers to:
Short-term debt ratio
Debt to equity proportion
Current ratio
Fixed asset coverage
Face value of a share means:
Market price of share
Book value of share
Nominal value of share
Issue price of share
ESG in business and finance stands for:
Environmental, Safety, Growth
Ethics, Sustainability, Governance
Environmental, Social, Governance
Equity, Social, Governance
Which principle of taxation suggests that taxes should be levied according to the taxpayer’s ability to pay?
Principle of convenience
Principle of certainty
Principle of equity
Principle of economy
Venture capital investment is generally in the form of:
Short-term loans
Debentures only
Equity or equity-linked instruments
Trade credit
Prime cost includes:
Direct material, direct labour, and overheads
Direct material and direct labour only
Direct material, direct labour, and direct expenses
Direct labour and factory overheads
