Accounting for Managers

241. Current ratio is 2:5.Current Liability is Rs.30,000.The Net working Capital is

1. Rs. 18,000
2. Rs. 45,000
3. Rs. (45,000)
4. Rs. (18000)

View answer

242. ______________ means expanding the number of investments which cover different kinds of stocks.

1. Diversification
2. Standard deviation
3. Variance
4. Covariance

View answer

243. What is the value of a $1,000 Face Value Bond that has twenty years remaining to Maturity, 10 % Coupon (paid annually), and is priced to yield 6%?

1. $ 980
2. $ 1,000
3. 1,263
4. None

View answer

244. One of the problems with attempting to forecast stock market values is that

1. There are no variables that seem to predict market return
2. The earnings multiplier approach can only be used at the firm level
3. The level of uncertainty surrounding the forecast will always be quite high
4. Dividend payout ratios are highly variable

View answer

245. Which of the following is a characteristic of a coupon bond?

1. Pays interest on a regular basis (typically every six months)
2. Does not pay interest on a regular basis but pays a lump sum at maturity
3. Total payment must be made at the end of period
4. All of above statement are correct

View answer

246. When the market's Required Rate of Return for a particular Bond is much less than its Coupon Rate, the Bond is selling at

1. Premium
2. Discount
3. Par
4. Face

View answer

247. ______________ is responsible for financial inventory, management, financial planning etc.

1. Shareholders
2. Treasurer
3. Controller
4. Board of Directors

View answer

248. Which group of ratios measures a firm's ability to meet short-term obligations?

1. Liquidity ratios
2. Debt ratios
3. Coverage ratios
4. Profitability ratios

View answer

249. Which one of following is not Direct Claim Security?

1. Bonds
2. Option
3. Shares
4. Stock

View answer

250. ABC’s and XYZ’s debt-to-total assets ratio is 0.4. What is its debt-to-equity ratio?

1. 0 .2
2. 0 .77
3. 0.667
4. 0.333

View answer