Financial management

31. Relationship between change in Sales and the Operating Profit is known as:

Financial Leverage
Operating Leverage
Net Profit Ratio
Gross Profit Ratio

Detailed SolutionRelationship between change in Sales and the Operating Profit is known as:

32. In a statement of cash flows, a company investing in short-term financial investments and in fixed assets results in

increased cash
decreased cash
increased liabilities
increased equity

Detailed SolutionIn a statement of cash flows, a company investing in short-term financial investments and in fixed assets results in

33. Having defined working capital as current assets, it can be further classified according to __________.

Financing method and time
rate of return and financing method
time and rate of return
components and time

Detailed SolutionHaving defined working capital as current assets, it can be further classified according to __________.

34. An analysis of decision making of investors and managers is classified as

risky finance
behavioral finance
premium finance
buying finance

Detailed SolutionAn analysis of decision making of investors and managers is classified as

35. The bonus issue is permitted to be made out of __________ and premium collected in cash.

free reserves
free interest
free bonus
free cash dividend

Detailed SolutionThe bonus issue is permitted to be made out of __________ and premium collected in cash.

36. Which is not a service of a factor?

Administrating Sales Ledger
Advancing against Credit Sales
Assuming bad Debt losses
None of the above

Detailed SolutionWhich is not a service of a factor?

37. Tendency of moving together of two variables is classified as

correlation
move tendency
variables tendency
double tendency

Detailed SolutionTendency of moving together of two variables is classified as

38. Maturity date decides at time of issuance of bond and legally permissible is classified as

original maturity
permanent maturity
artificial maturity
valued maturity

Detailed SolutionMaturity date decides at time of issuance of bond and legally permissible is classified as

39. Capital market line reflects an attitude of investors towards risk which is considered as an/a

non-aggregate
effective
ineffective
aggregate

Detailed SolutionCapital market line reflects an attitude of investors towards risk which is considered as an/a

40. Cost of retained earnings is equal to _______.

Cost of equity
Cost of debt
Cost of bank loan
Cost of term loans

Detailed SolutionCost of retained earnings is equal to _______.

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