Financial Accounting - Financial Accounting Objective Type Questions

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26:  

Capital budgeting is

A.	Actually the process of making investment decisions in capital expenditure
B.	A profit
C.	A sales
D.	A cost
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	Option: A Explanation : Click on Discuss to view users comments. Write your comments here: Updating your Comments.. Updating your Comments..

27:  

There is deterioration in the management of work capital of XYZ Ltd. What does it refer to?

A.	That capital employed has reduced
B.	That the profitability has gone up
C.	That sales has decreased
D.	That debtors collection period has increased
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	Option: D Explanation : Click on Discuss to view users comments. Write your comments here: Updating your Comments.. Updating your Comments..

28:  

Payback reciprocal method of ranking investment proposals should be used only when

A.	Annual savings are even for the entire period
B.	The econontic life of the project is at least twice of the pay back period
C.	(A) and (B) both
D.	None of the above
	Answer Report Discuss
	Option: C Explanation : Click on Discuss to view users comments. Write your comments here: Updating your Comments.. Updating your Comments..

29:  

Working capital can be used for the purchase of

A.	machinery
B.	goodwill
C.	raw material
D.	land & building
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	Option: C Explanation : Click on Discuss to view users comments. Write your comments here: Updating your Comments.. Updating your Comments..

30:  

Capital budgeting is known as

A.	Cost of Product
B.	Capital Expenditure
C.	Cost of Sales
D.	Profit
	Answer Report Discuss
	Option: B Explanation : Click on Discuss to view users comments. Write your comments here: Updating your Comments.. Updating your Comments..

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