Financial Accounting - Financial Accounting Objective Type Questions

1:  
Which method of capital budgeting called benefit cost ratio?
A.

Pay back period method

B.

Net present value method

C.

Payout period method

D.

Profitability Index method

 
 

Option: D

Explanation :

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Shilpa said: (8:00pm on Friday 31st March 2017)
Even NPV also called as discounted benefit cost ratio .. exaplain

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2:  

Which is the determinants of Capital Structure?

A.

Government Policy

B.

Control

C.

Tax

D.

Requirement of Investors

 
 

Option: A

Explanation :

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Sagina Jain said: (10:12pm on Saturday 11th February 2017)
how Government policy is the determinant of capital structure
Shilpa said: (8:15pm on Friday 31st March 2017)
In this all options are determinants of capital structure... So answer will not be only A
sam said: (4:08am on Friday 27th October 2017)
government policy wont decide the capital structure there is no relevance to tax and capital structurerequirement of the investor will be the answer because ultimately the good capital structure should result in wealth maximisation
Deepak Aggarwal said: (9:23pm on Thursday 22nd February 2018)
Correct, answer should be D. Requirement of capital structure.

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3:  
The significance of capital budgeting arises mainly due to the
A.

Complicacies of Investment decisions

B.

Irreversible in nature

C.

Large Investment

D.

All of the above

 
 

Option: D

Explanation :

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4:  
Which is the traditional method of Capital budgeting?
A.

Accounting Method

B.

Payout Method

C.

Pay back Method

D.

All of the above

 
 

Option: D

Explanation :

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5:  

Profit maximisation is

A.

It is indicator of economic efficiency

B.

primary objective of business

C.
Measurement of Success of business decisions
D.

All of the above

 
 

Option: D

Explanation :

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  • This section contains Financial accounting  Questions Answers.
  • This section can also be used by commerce students for improving their knowledge in Financial accounting
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