SCDL Assignment Financial Management - 68

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Multiple Choice Multiple Answer
Question	The methods which consider the risk in capital budgeting decision are
Answer	Informal method , Risk adjusted discounting rate , Certainty-Equivalent approach
Select The Blank
Question	Profit after taxes can be distributed among the owners of the company by way of ________
Answer	dividend
Multiple Choice Single Answer
Question	Interest Coverage ratio is calculated as
Answer	Profit before Interest and taxes / Interest charges
True/False
Question	internal rate of return indicates that the discounting rate at which net present value is zero
Answer	True
Select The Blank
Question	In ABC analysis C class consist of ________.
Answer	a very large number of items which are less important
True/False
Question	Semi-variable cost is the cost which varies in direct proportion to the sales revenue
Answer	False
True/False
Question	One of the most common methods to monitor the receivables on macro basis is to calculate age-wise analysis of receivables
Answer	False
Multiple Choice single answer
Question	Tangible net worth means
Answer	share capital plus free reserves
Multiple Choice Multiple Answer
Question	assuming the current ratio is 2, in which cases would the current ratio decline
Answer	Purchase of fixed Assets, Borrow Money on an Interest bearing promissory note
True/False
Question	Solvency ratios consists of current ratio and Price earnings ratio
Answer	False
Multiple Choice Single Answer
Question	Revenue reserves represents
Answer	Accumulated retained earnings from the profits of normal business operations
Select The Blank
Question	For the selection of the period for which capital expenditure budget should be prepared , ________ a period may not be useful
Answer	Too long
Multiple Choice Multiple Answer
Question	The shares of the company can be bought back out of the following amounts
Answer	Free Reserves of the company , Share Premium Account of the company , Proceeds of issue of any shares or other specified securities
Multiple Choice Single Answer
Question	From the following data, work out the Economic order quantity : Annual Demand : 5000 units, Ordering cost Rs. 60 per order, Price per unit Rs. 100, Inventory carrying cost is 15% on average inventory
Answer	200 units
Multiple Choice Single Answer
Question	Increase in average credit period to maintain sales in view of falling demand can be indicated by
Answer	Debtors turnover ratio

 

Note: Please tally the answers and verify them from SCDL textbooks as all answers might not be correct.