Classical

Financial Accounting - Financial Accounting Multiple Choice Questions

51:  

Operating leverage can be computed by

A.
14556
B.
14556
C.
14556
D.
14556
 
 

Option: A

Explanation :

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52:  

The Gordon 's model of dividend policy is based on

A.

The firm has perpetual life

B.

In the firm r and K remain unchanged

C.

The firm only uses retained earnings for financing its investment, it is all equity firm

D.

All of the above

 
 

Option: D

Explanation :

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53:  

Price Ratio Method is

A.

Earning Yield Method

B.

Growth Method

C.

Dividend Yield Method

D.

Asset Method

 
 

Option: A

Explanation :

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54:  

Match the following

List-I (Items)            List-II (Part)
(a) Dividend          1. Portion of Profit
(b) Stock                2. Portion of Current Assets
(c) Reserve           3. Surplus
(d) Depreciation   4. Charge against Profit
                                5. Fixed Liabilities
A.

(a)  (b)  (c)  (d)

 1     2     3    4

B.

(a)  (b)  (c)  (d)

 1     4     3    2

C.

(a)  (b)  (c)  (d)

 3     1     4    5

D.

(a)  (b)  (c)  (d)

 3     1     4    2

 
 

Option: A

Explanation :

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55:  
Match the following
List-I (Items/ Method)                      List-II (Used/ Application)
(a) Rate of Return Method             1. Capital budgeting
(b) Purchase Consideration          2. Merger
(c) Diminishing Balance Method  3. Depreciation
(d) FIFO Method                               4. Stocks Recording
                                                            5. Marketing

 

A.

(a)  (b)  (c)  (d)

  1    4     3     2

B.

(a)  (b)  (c)  (d)

  3    2     4     1

C.

(a)  (b)  (c)  (d)

  1    2     3     4

D.

(a)  (b)  (c)  (d)

  1    3    2     4

 
 

Option: C

Explanation :

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