[amp_mcq option1=”negative index” option2=”exchange index” option3=”project index” option4=”profitability index” correct=”option4″]
Financial management
32. Re-order level is ____________than safety level.
[amp_mcq option1=”higher” option2=”lower” option3=”medium” option4=”fixed” correct=”option1″]
Detailed SolutionRe-order level is ____________than safety level.
33. Basic objective of diversification is:
[amp_mcq option1=”Increasing Return” option2=”Maximising Return” option3=”Decreasing Risk” option4=”Maximizing Risk” correct=”option3″]
34. Under trading means.
[amp_mcq option1=”Having low amount of working capital” option2=”High turnover of working capital” option3=”Sales are less compared to assets employed” option4=”Low turnover of working capital” correct=”option2″]
35. Trading on Equity is:
[amp_mcq option1=”Always beneficial” option2=”May be beneficial” option3=”Never beneficial” option4=”None of the above” correct=”option2″]
36. Cash flow which starts negative then positive than again positive cash flow is classified as
[amp_mcq option1=”normal costs” option2=”non-normal costs” option3=”non-normal cash flow” option4=”normal cash flow” correct=”option4″]
37. Which of the following is a measure of Debt Service capacity of a firm?
[amp_mcq option1=”Current Ratio” option2=”Acid Test Ratio” option3=”Interest Coverage Ratio” option4=”Debtors Turnover” correct=”option3″]
Detailed SolutionWhich of the following is a measure of Debt Service capacity of a firm?
38. Collection of net income, amortization and depreciation is divided by common shares outstanding to calculate
[amp_mcq option1=”cash flow of financing activities” option2=”cash flow per share” option3=”cash flow of investment” option4=”cash flow of operations” correct=”option2″]
39. FL is zero if:
[amp_mcq option1=”EBIT = Interest” option2=”EBIT = Zero” option3=”EBIT = Fixed Cost” option4=”EBIT = Pref. Dividend” correct=”option1″]
40. Ratio of Net Income to Number of Equity Shares known as:
[amp_mcq option1=”Price Earnings Ratio” option2=”Net Profit Ratio” option3=”Earnings per Share” option4=”Dividend per Share” correct=”option3″]
Detailed SolutionRatio of Net Income to Number of Equity Shares known as: