Classical

Financial Accounting - Financial Accounting MCQ

51:  
Which one refers to cash in How under pay back period method?
A.

Cash flow before depreciation and taxes

B.

Cash flow after depreciation and taxes

C.
Cash flow after depreciation but before taxes
D.
Cash flow before depreciation and after taxes
 
 

Option: D

Explanation :


52:  

'360' degree method relates to

A.

Performance appraisal

B.

Organization Climate

C.

Employees moral

D.

Retrenchments

 
 

Option: A

Explanation :


53:  
Which of the statement is true about dividend policy?
A.
Legal requirements play an important role in the formulation of dividend policy.
B.
The dividend policy should be framed in accordance to the expectations of shareholders.
C.
A stable and regular dividend keeps speculations away and prices of shares remain stable for longer period.
D.

All of the above

 
 

Option: D

Explanation :


54:  
Which of the following is not a relevant cost in capital budgeting?
A.

Sunk cost

B.

Opportunity cost

C.

Allocated overheads

D.

Both (A) and (C) above

 
 

Option: D

Explanation :


55:  
Profitability Index, when applied to divisible projects, impliedly assumes that
A.

Project cannot be taken in parts.

B.
NPV is linearly proportionate to part of the project taken up.
C.

NPV is addictive in nature.

D.

Both (B) and (C).

 
 

Option: D

Explanation :




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