Accounts

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Master Your Financial Knowledge: Take the Quiz!

Challenge yourself with our comprehensive quiz on accounting and finance! This quiz covers a wide range of topics, from capital budgeting to inventory management, testing your understanding of key concepts.

Key Features:

  • 20 Multiple Choice Questions
  • Instant Feedback on Your Answers
  • Score Yourself on Financial Acumen
20 Questions5 MinutesCreated by CalculatingMaster957
1. …… measures the firm’s ability to meet its short term obligations
Profitability ratios
Liquidity ratios
Asset Management ratios
Leverage ratios
The PV of $ 5000 due in 5 year at 10 % interest rate is:
500
2500
3104.61
3500
The …… is the measure of total risk
Coefficient of variation
Standard Deviation
Covariance
Correlation coefficient
Which of the following has highest cost of capital?
Equity Shares
Loans
Debentures
Preference Shares
Tax Rate is relevant for calculation of cost of capital of
Equity
Bond
Preference Share
Both a & b
Cost of Equity Share Capital is more than cost of debt because:
Face value of debenture is more than the face value of equity share
Equity shares are easily saleable
Equity shares have higher risk associated
Both b & c
NPV of a project at 12 % rate of interest is negative. This means:
Present Value of Project is above the cost
Present Value Cash inflows is greater than Present Value of cash outflow
Present Value Cash inflows is less than Present Value of cash outflow
None of the above
PI of a project is greater than 1. This means
Present Value of Project is above the cost
Present Value Cash inflows is greater than Present Value of cash outflow
Present Value Cash inflows is less than Present Value of cash outflow
None of the above
Capital Budgeting is the part of
Investment decision
Marketing decision
Working Capital Management
Capital Structure decision
. Project costing $ 800,000 and life of 5 years expected to bring cash inflow of $200,000 each year. What is the payback period:
5 years
3 years
2 years
None of the above
If a firm has inventory turnover 5 times, its inventory conversion period will be :
40 days
45 days
50 days
73 days
. Net Working capital of the firm is :
Total assets of a firm
Total fixed assets of a firm
Total Current assets of a firm
Total current assets minus total current liabilities
Cash conversion cycle of a firm is determined by the equation:
ICP+RCP-PDP
. ICP-PDP-RCP
ICP+PDP-RCP
ICP+PDP+RCP
A firm has receivables turnover 12 times, than its receivables conversion period will be:
20 days
30 days
25 days
35 days
Presently, a firm is selling on 3/15, net 45. Its sales will increase if it sells at these terms
A. 3/15, net 30
. 3/10. net 45
3/10, net 30
. 3/15, net 60
A useful tool to monitor outstanding receivable is
A credit policy.
Credit scoring.
An aging schedule
Collection Policy
. Which of the following correctly specifies the level of the firm's receivable balance?
Average annual sales/average collection period.
Average collection period/average daily sales.
Credit sales/accounts receivable turnover.
Accounts receivable turnover × average daily sales
The company recently changed the terms offered to its customers from 2/10 net 30 to 2/15 net 30. It means firm changed its:
Cash discount
Cash discount Period
Credit Period
None
When a company makes a credit sale of inventory
Cash is received.
Payable is created.
Cash is paid.
Receivable is created.
Which of the following is correct:
PBP is greater than DPBP
Where NPV=0, Profitability Index (PI)=1
Where NPV is 0, PBP is equal to DPBP
None of the above
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