Classical

Financial Accounting - Financial Accounting Objective Type Questions

1:  
Which method of capital budgeting called benefit cost ratio?
A.

Pay back period method

B.

Net present value method

C.

Payout period method

D.

Profitability Index method

 
 

Option: D

Explanation :


2:  

Which is the determinants of Capital Structure?

A.

Government Policy

B.

Control

C.

Tax

D.

Requirement of Investors

 
 

Option: A

Explanation :


3:  
The significance of capital budgeting arises mainly due to the
A.

Complicacies of Investment decisions

B.

Irreversible in nature

C.

Large Investment

D.

All of the above

 
 

Option: D

Explanation :


4:  
Which is the traditional method of Capital budgeting?
A.

Accounting Method

B.

Payout Method

C.

Pay back Method

D.

All of the above

 
 

Option: D

Explanation :


5:  

Profit maximisation is

A.

It is indicator of economic efficiency

B.

primary objective of business

C.
Measurement of Success of business decisions
D.

All of the above

 
 

Option: D

Explanation :




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