December 2012 - Paper 3

56:  

When the Debt Turnover Ratio is 4, what is the average collection period?

A.

5 months

B.

4 months

C.

3 months

D.

2 months

 
 

Option: C

Explanation :

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57:  

ABC Ltd. has declared 40% dividend. Which one of the following does it mean?

A.

The company has declared 40% of net profit as dividend.

B.

The company has declared 40% of profits after tax as dividend.

C.

The company will provide dividend 40% on issued capital.

D.

The company will provide dividend 40% on paid-up capital.

 
 

Option: D

Explanation :

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58:  

Who did give the concept of hierarchy of needs?

A.

Fredrick Herzberg

B.

Victor Vroom

C.

Douglas Mcgregor

D.

A. H. Maslow

 
 

Option: D

Explanation :

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59:  

Income and Expenditure Account of nonprofit organisation is a

A.

Real Account

B.

Nominal Account

C.

Personal Account

D.

Representative Personal Account

 
 

Option: B

Explanation :

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60:  

Which of the following will result into sources of funds?

(i) Increase in current assets

(ii) Decrease in current assets

(iii) Increase in current liabilities

(iv) Decrease in current liabilities

A.

(i) and (iv)

B.

(ii) and (iii)

C.

(i) and (iii)

D.

(ii) and (iv)

 
 

Option: B

Explanation :

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