Classical

Financial Accounting - Financial Accounting MCQ

61:  
Match List-I with List-II and select the correct answer using the codes given below thelists:
      List-I                                                 List-II
a. Capital budgeting                        I. Time adjusted rate of return
b. Profitability Index                          II. Irreversible
c. Internal rate of return                   Ill. Benefit / cost
d. Capital investment decisions   IV. Planing capital expenditure.

 

A.

 a  b   c   d

IV  III   II   I

B.

 a  b   c   d

 I   IV   II   III

C.

 a  b   c   d

IV  III   I   II

D.

 a  b   c   d

 II   I   III   IV

 
 

Option: C

Explanation :


62:  
Which of the following term is used to represent the proportionate relationship between debt and equity?
A.

Cost of capital

B.

Capital Budgeting

C.

Assets Structure

D.

Capital structure

 
 

Option: D

Explanation :


63:  

The concept of present value is based on the

A.

Principle of compound

B.

Principle of discounting

C.

Both (A) and (B)

D.

None of the above.

 
 

Option: B

Explanation :


64:  
Cost of capital from all the sources of funds is called
A.

Specific cost

B.

Composite cost

C.

Implicit Cost

D.

Simple Average Cost

 
 

Option: B

Explanation :


65:  
Which one of the following is not used to estimate cost of equity capital?
A.

External yield criterion

B.

Dividend plus growth rate

C.

Equity capitalisation approach

D.

Capital asset pricing model.

 
 

Option: A

Explanation :




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