Classical

Financial Accounting - Financial Accounting Multiple Choice Questions

1:  

Which are the determinants of dividend policy?

A.

Working Capital Requirement

B.

Liquidity Position

C.

Legal Requirement

D.

All of the above

 
 

Option: D

Explanation :


2:  

Which ratio explains that how much por­tion of earning is distributed in the form of dividend?

A.

Equity-Debt Ratio

B.

Pay-out Ratio

C.

Earning Yield Ratio

D.

Dividend-Debt Ratio

 
 

Option: B

Explanation :


3:  

After declaration dividends are paid to the shareholders as per the provision of

A.

Indian Companies Act

B.

RBI Act

C.

SEBI Act

D.

Indian Contract Act

 
 

Option: C

Explanation :


4:  

Dividend Policy must be

A.

Flexible

B.

Flexible and Fixed both

C.

Fixed

D.

All of the above

 
 

Option: A

Explanation :


5:  
Assertion (A) :The liability of share holders in a private limited company is limited to the amount.
Reason (R) :The number of share holders of a private limited company is limited to fifty.
A.
Both A and R are true and R is the correct explanation of A
B.
Both A and R are true but R is not a correct explanation of A
C.

A is true but R is false

D.

A is false but R is true

 
 

Option: D

Explanation :




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