Classical

Financial Accounting - Financial Accounting MCQ

11:  
Match List-I with List-ll and select the correct answer using the codes given below the lists:
      List-I                                   List-II
a. Matching approach         I. Dividend policy
b. Structural ratios              II. Inventory Management
c. Ordering quality              Ill. Financing Working Capital
d. Bonus-Shares               IV. Capital Structure
A.

a   b    c    d

 I   II    III    IV

B.

a    b    c    d

 III   IV   I    II

C.

a     b    c    d

 III   IV    II    I

D.

a   b    c    d

 II   I    III    IV

 
 

Option: C

Explanation :


12:  
Which of the following is not included in the assumption on which Myron Gorden proposed a model on Stock valuation
A.

Retained earning the only source of financing

B.

Finite Life of the firm

C.

Taxes do not exist

D.

Constant rate of return on firms investment.

 
 

Option: B

Explanation :


13:  
Examine the following statements.
(i) Payback period method measure the true profitability of a project.
(ii) Capital Rationing and capital budgeting mean the same thing.
(iii) Internal Rate of Return and Time Adjusted rate of Return are the same thing.
(iv) Rate of Return takes into account the time value of money.
A.

(i), (ii) and (iii) are correct.

B.

(ii) and (iii) are correct.

C.

Only (iii) is correct.

D.

All (i), (ii), (iii) and (iv) are false.

 
 

Option: A

Explanation :


14:  

Which is called as Dividend Ratio Method?

A.

Dividend Yield Method

B.

Debt Equity Method

C.

Asset Method

D.

Equity Method

 
 

Option: A

Explanation :


15:  
If the current ratio is 2: 1 and working capital is Rs. 60,000, What is the value of the current assets?
A.

Rs. 60,000

B.

Rs. 1,00,000

C.

Rs. 1,20,000

D.

Rs. 1,80,000

 
 

Option: C

Explanation :




Suggest an improvement