Classical

Advanced Questions - Section 4

41:  

A short-term lease which is often cancellable is known as

A.

Finance Lease

B.

Net Lease

C.

Operating Lease

D.

Leverage Lease

 
 

Option: C

Explanation :


42:  

Which of the following is not used in Capital Budgeting?

A.

Time Value of Money

B.

Sensitivity Analysis

C.

Net Assets Method

D.

Cash Flows.

 
 

Option: C

Explanation :


43:  

Inventory is generally valued as lower of

A.

Market Price and Replacement Cost

B.

Cost and Net Realizable Value

C.

Cost and Sales Value

D.

Sales Value and Profit.

 
 

Option: B

Explanation :


44:  

An investor buys a bond today and sells after 3 months the rate of return realised is known as

A.

Yield to Maturity

B.

Current yield

C.

Holding Period Return

D.

Required Rate of Return.

 
 

Option: C

Explanation :


45:  

Which of the following is not true for cash Budget?

A.

That shortage or excess of cash would appear in a particular period.

B.

All inflows would arise before outflows for those periods.

C.

Only revenue nature cash flows are shown.

D.

Proposed issue of share capital in shown as an inflow.

 
 

Option: C

Explanation :




Suggest an improvement