Which of the following terms refers to the use of debt financing?
(A) Operating Leverage
(B) Financial Leverage
(C) Manufacturing Leverage
(D) None of the given options
Standard Company had net sales of Rs. 750,000 over the past year. During that time, average receivables were Rs. 150,000. Assuming a 365-day year, what was the average collection period?
(A) 5 days
(B) 36 days
(C) 48 days
(D) 73 days
Which of the following costs are reported on the income statement as the cost of goods sold?
(A) Product cost
(B) Period cost
(C) Both product cost and period cost
(D) Neither product cost nor period cost
Finance is vital for which of the following business activity (activities)?
(A) Marketing Research
(B) Product Pricing
(C) Design of marketing and distribution channels
(D) All of the given options
Which of the following refers to the cash flows that result from the firm‟s day-to-day activities of producing and selling?
(A) Operating Cash Flows
(B) Investing Cash Flows
(C) Financing Cash Flows
(D) All of the given options
Which of the following is the overall return the firm must earn on its existing assets to maintain the value of the stock?
(A) IRR (Internal Rate of Return)
(B) MIRR (Modified Internal Rate of Return)
(C) WACC (Weighted Average Cost of Capital)
(D) AAR (Average Accounting Return)
A series of constant cash flows that occur at the end of each period for some fixed number of periods is ____________ .
(A) an ordinary annuity
(B) annuity due
(C) multiple cash flows
(D) perpetuity
The DuPont Identity tells us that Return on Equity is affected by:
(A) The DuPont Identity tells us that Return on Equity is affected by:
(B) asset use efficiency (as measured by total assets turnover)
(C) financial Leverage (as measured by equity multiplier)
(D) all of the given options (a, b and c)
A standardized financial statement presenting all items of the statement as a percentage of total is:
(A) a common-size statement
(B) an income statemen
(C) a cash flow statement
(D) a balance sheet
Which of the following is the process of planning and managing a firm‟s long-term investments?
(A) Capital Structuring
(B) Capital Rationing
(C) Capital Budgeting
(D) Working Capital Management