FM assgn :38: Parmeet Select The Blank Question The projects having Profitability index of more than ________ will be accepted Correct Answer one Your Answer one Multiple Choice Single Answer Question If the issue of Debentures is having the maturity period of more than 18 months, the company shall create Correct Answer Debenture Redemption reserve Your Answer True/False Question Debenture Redemption reserve In case of cash credit, the company need not have a formal current account Correct Answer True Your Answer False Multiple Choice Multiple Answer Question Objective of perpetual inventory system are Correct Answer Maintenance of Bin Cards and Stores ledger in order to know about the stock in quantity and value at any given point of time , Continuous verification of physical stock to ensure that the physical balance and the book balance tallies Your Answer Maintenance of Bin Cards and Stores ledger in order to know about the stock in quantity and value at any given point of time , Continuous verification of physical stock to ensure that the physical balance and the book balance tallies Multiple Choice Single Answer Question Financing consists of the raising, providing, managing of all the money, capital or funds of any kind to be used in connection with the business' is defined by Correct Answer Bonneville and Dewey Your Answer Bonneville and Dewey Multiple Choice Single Answer Question From the following data compute Reorder level : Normal usage 40 units per week each, Minimum usage 15 units per week each, Maximum usage 65 units per week each, Re-order quantity 400 units, Re-order period 4 to 6 weeks Correct Answer 390 units Your Answer 390 units True/False Question The assumptions of capital structure theories is that Operating earnings are not expected to grow Correct Answer True Your Answer True Select The Blank Question The fixed assets are expressed at ________ Correct Answer Cost - Depreciation Your Answer Cost - Depreciation Multiple Choice Multiple Answer Question The book-keeping and accounting activities in relation to the receivables management undertaken by the factor includes Correct Answer Maintenance of debtors ledger , Various periodical reports about outstanding from the customers , Age-wise analysis of the outstanding Your Answer Maintenance of debtors ledger , Various periodical reports about outstanding from the customers , Age-wise analysis of the outstanding Multiple Choice Multiple Answer Question The classification of return on Investment are Correct Answer Return on Asset , Return on Capital Employed Your Answer Return on Asset , Return on Capital Employed Multiple Choice Multiple Answer Question The recurring duties of Finance Executive includes Correct Answer Fixed Assets management , Control of funds , Working Capital Management Your Answer Working Capital Management , Fixed Assets management , Control of funds Multiple Choice Multiple Answer Question Operating cost incurred by the company can be classified into Correct Answer Variable cost , Fixed cost , Semi-variable cost Your Answer Variable cost , Fixed cost , Semi-variable cost Multiple Choice Single Answer Question The company can raise the funds in the form of Public deposits which can be used Correct Answer For any purpose Your Answer For any purpose Multiple Choice Multiple Answer Question Fixation of Inventory levels are based on the following propositions Correct Answer There has to be a constant watch on the actual stock level of that proper action can be taken , The various levels fixed are basis and are subject to revision regularly Your Answer There has to be a constant watch on the actual stock level of that proper action can be taken , The various levels fixed are basis and are subject to revision regularly various kinds of materials so not fixed on a permanent various kinds of materials so not fixed on a permanent Multiple Choice Single Answer Question Preference shares which stay with the company as long as it is a going concern are known as Correct Answer Perpetual preference shares Your Answer Redeemable preference shares Multiple Choice Single Answer Question If the issue of Debentures is having the maturity period of more than 18 months, the company shall appoint a Correct Answer Debenture Trustee Your Answer Debenture Trustee Multiple Choice Single Answer Question Default cost is Correct Answer the cost which cannot be recovered from the customer due to their inability to pay Your Answer administrative cost incurred in collecting the receivables from the customers Select The Blank Question Operating Lease is also referred to as ________ lease Correct Answer Service Your Answer Service Multiple Choice Single Answer Question Which of the following assets get generated during course of operations or get utilized within one year Correct Answer Current assets Your Answer Current assets Multiple Choice Single Answer Question The Capital Structure decision mainly refers to the decision of Correct Answer Financing Your Answer Financing Multiple Choice Single Answer Question Stock in the beginning results in Correct Answer Application of funds Your Answer Sinking fund Multiple Choice Multiple Answer Question Utility of cash flow analysis Correct Answer Helps in efficient cash management , helps in internal financial management , Discloses the movements of cash Your Answer Helps in efficient cash management , helps in internal financial management , Discloses the movements of cash True/False Question Reorder level is calculated as Maximum Lead Time * Minimum Usage Correct Answer False Your Answer True Multiple Choice Multiple Answer Question While using Trade credit as a source of working capital financing, following factor play an important role Correct Answer Liquidity position of the company , Earnings of the company over a period of time , Relationship of the company with the suppliers Your Answer Liquidity position of the company , Earnings of the company over a period of time , Relationship of the company with the suppliers Multiple Choice Single Answer Question The value created by the use of resources is more than the total of the input resources is referred to as Correct Answer Profit Your Answer Profit Select The Blank Question The mathematical expression of ________ is ( Minimum level + Maximum level ) / 2 Correct Answer Average level Your Answer Average level Select The Blank Question A list of all the material required for a job, process or production order is termed as ________. Correct Answer Bill of materials Your Answer True/False Question Bill of materials The Stock Dividends are more expensive to administer as compared to cash dividends Correct Answer True Your Answer True Select The Blank Question A wrong decision in respect of capital expenditure proposals may disturb the entire ________ structure of the organisation Correct Answer financial Your Answer financial Match The Following Question Correct Answer Your Answer Increase in current assets increases working capital increases working capital Increase in current liabilities decreases working capital decreases working capital Increase in liabilities inflow of funds inflow of funds Decrease in liabilities outflow of funds outflow of funds Multiple Choice Single Answer Question The ratio which indicates the protection available to the lenders of long term capital in the form of funds available to pay the interest charges is Correct Answer Interest coverage ratio Your Answer Interest coverage ratio Multiple Choice Multiple Answer Question Advantages of factoring Correct Answer Factoring is the way in which the company can finance its requirement of Working capital in respect of receivables , The company can take advantage of the expertise of the factor in various fields , With the help of factoring the company can be relieved of administrative responsibilities Your Answer Factoring is the way in which the company can finance its requirement of Working capital in respect of receivables , The company can take advantage of the expertise of the factor in various fields , With the help of factoring the company can be relieved of administrative responsibilities Match The Following Question Correct Answer Your Answer Financial leverage indicates firm's ability to use fixed financial charges to magnify the effects of changes in earning before interest and tax on the firm's earning per share indicates firm's ability to use fixed financial charges to magnify the effects of changes in earning before interest and tax on the firm's earning per share Earnings per share ratio to measure the profits available to the equity shareholders on a per share basis ratio to measure the profits available to the equity shareholders on a per share basis Price earning ratio indicates the price currently being paid in the stock market for every one rupee of Earning per share indicates the price currently being paid in the stock market for every one rupee of Earning per share Operating leverage measures the effect of change in sales quantity on earnings before interest and taxes measures the effect of change in sales quantity on earnings before interest and taxes Select The Blank Question Modigliani - Miller approach closely resembles ________ approach Correct Answer Net operating income Your Answer Net operating income True/False Question Re-order level is the highest level of inventory to be maintained above which the inventory should not rise Correct Answer False Your Answer False True/False Question Debt Service Coverage Ratio is one of the most important ratios calculated by the bankers of financial institutions giving long term finance to the organisation Correct Answer True Your Answer True True/False Question With limited funds, the company must obtain the optimum combination of acceptable investment proposals Correct Answer True Your Answer True Select The Blank Question ________ ratio will be useful in indicating the symptom of inability to pay dues to financial institutions Correct Answer Debt Service Coverage ratio Your Answer Debt Service Coverage ratio Select The Blank Question For the selection of the period for which capital expenditure budget should be prepared , ________ a period may not be useful Correct Answer Too long Your Answer Too long Multiple Choice Multiple Answer Question The approaches to compute the cost of equity shares are Correct Answer Dividend / Price Approach , Realised Yield Approach , Earnings / Price Approach Your Answer Dividend / Price Approach , Realised Yield Approach , Earnings / Price Approach Multiple Choice Single Answer Question The Pay Bank period is calculated as Correct Answer Cash outlay / Annual cash inflow Your Answer Cash outlay / Annual cash inflow Multiple Choice Multiple Answer Question In financial analysis, generally the following leverages are computed Correct Answer Operating leverage , Financial leverage , Combined leverage Your Answer Operating leverage , Financial leverage , Combined leverage Multiple Choice Single Answer Question While computing liquid ratio, liquid liability includes all liability except Correct Answer Bank overdraft Your Answer Bank overdraft True/False Question The analysis of different sources and application of cash enables the management to make reliable cash flow projections for the immediate future Correct Answer True Your Answer True Multiple Choice Single Answer Question The amount of cheques deposited by a Bank awaiting clearance is called Correct Answer Collection float Your Answer Deposit float Select The Blank Question Turnover ratios measures how efficiently the ________ are employed by the firm Correct Answer Assets Your Answer Assets Multiple Choice Single Answer Question Mr. A is given the opportunity to receive Rs. 10,000 after two years, when he can earn interest of 10% p.a. on his investment, what should be the amount which he should invest today so that he may be able to receive Rs. 10,000 after two years Correct Answer Rs. 8,264 Your Answer Rs. 8,264