Which of the following ratios is NOT from the set of Asset Management Ratios?
(A) Inventory Turnover Ratio
(B) Receivable Turnover
(C) Capital Intensity Ratio
(D) Return on Assets
A firm has paid out Rs. 150,000 as dividends from its net income of Rs. 250,000. What is the retention ratio for the firm?
(A) 12%
(B) 25%
(C) 40%
(D) 60%
The most important item that can be extracted from financial statements is the actual ________ of the firm.
(A) Net Working Capital
(B) Cash Flow
(C) Net Present Value
(D) None of the given options
Which of the following statement is considered as the accountant’s snapshot of firm’s accounting value as of a particular date?
(A) Income Statement
(B) Balance Sheet
(C) Cash Flow Statement
(D) Retained Earning Statement
When the market’s required rate of return for a particular bond is much less than its coupon rate, the bond is selling at:
(A) Premium
(B) Discount
(C) Par
(D) Cannot be determined without more information
Mr. Y and Mr. Z are planning to share their capital to run a business. They are going to employ which of the following type of business?
(A) Sole-proprietorship
(B) Partnership
(C) Corporation
(D) None of the given options
The effect of purchasing power or inflation on present value is important because _________?
(A) It increases the real value of cash flows received in the future
(B) It reduces the real value of cash flows received in the future
(C) It has no effect on real value of cash flow received in the future
(D) None of these
The formula to calculate the present value of a single cash flow is given by:
(A) CF1 / (1+r)n
(B) C2 / (1+r)
(C) C0 + C (1+r)n
(D) None of these
Choose from the following a symptom which is not relating to “Over Trading”?
(A) Cash shortage
(B) Low inventory turnover ratio
(C) Low current ratio
(D) High inventory turnover ratiO