Advanced Questions - Section 4

46:  

Return on Investment may be unproved by

A.

Increasing Turnover

B.

Reducing Expenses

C.

Increasing Capital Utilization

D.

All of the above.

 
 

Option: D

Explanation :

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47:  

Which of the following is not considered which preparing cash budget?

A.

Accrual Principle

B.

Difference in Capital, and Revenue items

C.

Conservation Principle

D.

All of the above.

 
 

Option: D

Explanation :

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48:  

Dividend Payout Ratio is

A.

PAT Capital

B.

DPS ÷ EPS

C.

Pref. Dividend ÷ PAT

D.

Pref. Dividend ÷ Equity Dividend

 
 

Option: B

Explanation :

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49:  

Payment to creditors is a manifestation of cash held for

A.

Transactionary Motive

B.

Precautionary Motive

C.

Speculative Motive

D.

All of the above.

 
 

Option: A

Explanation :

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50:  

An investor should buy a bond if

A.

Intrinsic Value < Market Value

B.

Intrinsic Value > Market Value

C.

Market Value < Redemption Value

D.

Market Value = Redemption Value.

 
 

Option: B

Explanation :

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