Classical

Financial Accounting - Financial Accounting Objective Type Questions

6:  
When Capital Redemption Reserve Account is opened ?
A.

At the time of equity repayment

B.

At the time of Preference Share Redemption

C.

At the time of Reserve

D.

All of the above

 
 

Option: B

Explanation :


7:  

Which is the Principle of Capital Structure?

A.

Cost and control principle

B.

Risk principle

C.

Both (A) and (B)

D.

None of the above

 
 

Option: C

Explanation :


8:  

Capital budgeting involves the

A.

Planning of Purchase

B.

Planning of Sales

C.

Planning of expenditure for assets

D.

All of the above

 
 

Option: C

Explanation :


9:  
If the equity shareholder purchases the shares of the company at more than the face value of the share then the ---- is calculated.
A.

Dividend Yield Ratio

B.

Earnings Yield Ratio

C.

Payout Ratio

D.

Debt Equity Ratio

 
 

Option: B

Explanation :


10:  
The proposal is accepted if the profitability index isrnore than
A.

One

B.

Zero

C.

Three

D.

Five

 
 

Option: A

Explanation :




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