Classical

Financial Accounting - Financial Accounting Multiple Choice Questions

6:  

Earning Yield computed by

A.
14497
B.
14497
C.
14497
D.
14497
 
 

Option: A

Explanation :


7:  
The relationship between the cost of equity and financial leverage in accordance with MM proposition II can be expressed by
A.

R = Equity /100

B.

 R = (Equity / Debt) x 100

C.

rE = r0 + D / E (r0 - rD)(1 - Tc)

D.

R = Equity / Income

 
 

Option: B

Explanation :


8:  
Match the following
List-I (Type of Value)       List-II (Features of Value)
(a) Market Value                1. Price which is present in market
(b) Intrinsic Value              2. Net Assets
(c) Liquidation Value        3. Value at wind up
(d) Salvage Value             4. Scrap Value
                                             5. Cost Price
 
A.

(a)  (b)  (c)   (d)

 1    4      3     2

B.

(a)  (b)  (c)   (d)

 1     2     3     4

C.

(a)  (b)  (c)   (d)

 1     3     2     4

D.

(a)  (b)  (c)   (d)

 1    4      3     5

 
 

Option: B

Explanation :


9:  

What is the advantage of 'NPV Method'?

A.
This method considers the entire economic life of the project
B.
It takes into account the objective of maximum profitability
C.
This method can be allied where cash inflows are even
D.

All of the above

 
 

Option: D

Explanation :


10:  

Pay back period computed by

A.
14501
B.
14501
C.
14501
D.
14501
 
 

Option: B

Explanation :




Suggest an improvement

 


  • Financial accounting questions answers can be used in the preparation of ugc net exams.
  • These questions can be downloaded as Financial accounting online study material pdf.
  • Financial accounting questions can be used for the preparation of quizzes by any commerce student.
  • Financial accounting objective type questions answers can be used to gain a credit score in various undergraduate and post graduate commerce courses like B com and Mcom
  • This section contains Financial accounting  Questions Answers.
  • This section can also be used by commerce students for improving their knowledge in Financial accounting
  • These mcq can also be used by any student of XI or XII standard who has opted to study commerce to increase his knowledge in Financial accounting.