Question
Net Profit ratio
Correct Answer
Indicates that portion of sales
available to the owners after
consideration of all types of
expenses and cost
Your Answer
Indicates that portion of sales
available to the owners after
consideration of all types of
expenses and cost
Undue increase in Gross Profit Over-valuation of closing stock Over-valuation of closing stock
ratio
Undue decrease in Gross
Profit ratio
Under-valuation of closing
stock
Gross Profit ratio
Indicates the relation between Indicates the relation between
production cost and Sales
production cost and Sales
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Question
Under-valuation of closing stock
Correct Answer
Your Answer
Term loan
represents a source of debt
finance which is generally
repayable in more than one
year but less than ten years
instruments to raise long term
debt capital
Lessee
Not able to claim depreciation
on asset
Claims the depreciation on the
asset
Hirer
Claims the depreciation on the Not able to claim depreciation
asset
on asset
Retained earnings
Residue left behind from
earnings available to equity
shareholders after the payment
of annual dividend
represents a source of debt
finance which is generally
repayable in more than one
year but less than ten years
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Question
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Role of Client
Sends the invoice copy
Sends the invoice copy
Without Recourses factoring
risk of non-payment assumed
by factor
risk of non-payment assumed
by factor
With Recourses factoring
risk of non-payment assumed
by selling company
risk of non-payment assumed
by selling company
Role of factor
Follows up
Follows up
Question
Correct Answer
Your Answer
Safety Stock
below which the actual stock
should not be allowed to fall
below which the actual stock
should not be allowed to fall
ABC Analysis
Vital few Trivial Many
Vital few Trivial Many
Bill of Materials
Details of the necessary
Details of the necessary
materials as well as quantity of materials as well as quantity of
each item
each item
Perpetual Inventory System
Maintenance of Bin Cards and Maintenance of Bin Cards and
Stores ledger in order to know Stores ledger in order to know
about the stock in quantity and about the stock in quantity and
value at any given point of time value at any given point of time
Question
Correct Answer
Your Answer
Interpretation
Explaining the meaning and
significance of the financial
data
Explaining the meaning and
significance of the financial data
Accounting ratio
It is the relationship expressed
in mathematical terms between
two accounting figures related
with each other
It is the relationship expressed
in mathematical terms between
two accounting figures related
with each other
Composite ratios
Ratios based on figures of
Ratios disclosing the financial
profit and loss Account as well position or solvency of the firm
as the balance sheet
Financial ratios
Ratios disclosing the financial Ratios based on figures of profit
position or solvency of the firm and loss Account as well as the
balance sheet
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Question
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Financial ratios
Ratios disclosing the financial Ratios which reflect the final
position or solvency of the firm results of business operations
Profitability ratio
Ratios which reflect the final
The ratios indicate the efficiency
results of business operations with which the working capital is
being used
Turnover ratios
Ratios measuring the efficiency Ratios which indicates the
with which the assets are
percentage of return on the total
employed by a firm
capital employed in the
business
Overall profitability ratio
Ratios which indicates the
percentage of return on the
total capital employed in the
business
Ratios measuring the efficiency
with which the assets are
employed by a firm
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Question
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Advantage of Net present
value
considers cash inflows from
the project throughout its life
considers time value of money
Disadvantage of Accounting
rate of return
uses profits after depreciation
and taxes and not the cash
inflows for evaluating the
projects
uses profits after depreciation
and taxes and not the cash
inflows for evaluating the
projects
Disadvantage of Pay back
period
ignores time value of money
ignores time value of money
Advantage of Discounted Pay
back period
considers time value of money considers cash inflows from the
project throughout its life
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Question
Correct Answer
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Internal rate of return less than
Project rejected
indicates that period within which
cost of capital
the discounted cash inflows equal to
the discounted cash outflows
Internal rate of return
breakeven rate of borrowing for the ratio between total discounted cash
company
inflows and total discounted cash
outflows
Profitability Index
ratio between total discounted cash Project accepted
inflows and total discounted cash
outflows
Profitability Index more than one
Project accepted
Project rejected
Question
Correct Answer
Your Answer
Recurring duties of finance
executive
Raising of funds
Promotional expenditure
Objective of finance function
Profit maximization
Profit maximization
Treasurer
Cost management
Internal Auditing
Finance Controller
Internal Auditing
International Finance
Match The Following
Question
Correct Answer
Your Answer
Disadvantage of Accounting
rate of return
uses profits after depreciation
and taxes and not the cash
inflows for evaluating the
projects
uses profits after depreciation
and taxes and not the cash
inflows for evaluating the
projects
Disadvantage of Pay back
period
ignores time value of money
ignores time value of money
Advantage of Discounted Pay
back period
considers time value of money considers time value of money
Advantage of Net present
value
considers cash inflows from
the project throughout its life
considers cash inflows from the
project throughout its life
Match The Following
Question
Correct Answer
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The relation of Net Sales and
Working Capital
Working Capital turnover ratio
Working Capital turnover ratio
The ratio which indicates the
speed at which the Sundry
debtors are converted in the
form of cash
Debtors turnover ratio
Debtors turnover ratio
The ratio which indicates the
efficiency of the organisation
with which the capital
employed is being utilised
Capital turnover ratio
Return on Asset
Ratio which measures the
profitability of the investments
in a firm
Return on Asset
Dividend Payment ratio
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
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 fi
financial charges to magnify th
effects of changes in earning b
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 shareho
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 be
paid in the stock market for ev
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
sales quantity on earnings befo
interest and taxes
Match The Following
Question
Correct Answer
Your Answer
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
Increase in current assets
increases working capital
increases working capital
Match The Following
Question
Correct Answer
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Nayak committee
to recognize the contribution
made by the SSI sector to the
economy
to recognize the contribution mad
by the SSI sector to the economy
Dahejia committee
to examine the extent to which
credit needs of industry and trade
are likely to be inflated and how
such trends could be checked
to examine the extent to which
credit needs of industry and trad
are likely to be inflated and how
such trends could be checked
Chhore committee
to review mainly the system of
to review mainly the system of
cash credit management policy by cash credit management policy b
banks
Marathe committee
banks
to review the credit authorization to review the credit authorization
scheme
scheme