Finance MCQs

Page No. 40

A portion of profits, which a company retains itself for further expansion, is known as:


aDividends


bRetained Earnings


cCapital Gain


dNone of the given options


View Answer Retained Earnings

In which type of market, new securities are traded?


aPrimary market


bSecondary market


cTertiary market


dNone of the given options


View Answer Primary market

Which of the following terms refers to the use of debt financing?


aOperating Leverage


bFinancial Leverage


cManufacturing Leverage


dNone of the given options


View Answer Financial Leverage

Standard Company had net sales of Rs. 750,000 over the past year. During that time, average receivables were Rs. 150,000. Assuming a 365-day year, what was the average collection period?


a5 days


b36 days


c48 days


d73 days


View Answer 73 days

Which of the following costs are reported on the income statement as the cost of goods sold?


aProduct cost


bPeriod cost


cBoth product cost and period cost


dNeither product cost nor period cost


View Answer Product cost

Finance is vital for which of the following business activity (activities)?


aMarketing Research


bProduct Pricing


cDesign of marketing and distribution channels


dAll of the given options



Which of the following refers to the cash flows that result from the firm‟s day-to-day activities of producing and selling?


aOperating Cash Flows


bInvesting Cash Flows


cFinancing Cash Flows


dAll of the given options


View Answer Operating Cash Flows

Cash flow from assets involves which of the following component(s)?


aOperating cash flow


bCapital spending


cChange in net working capital


dAll of the given options



Financial policy is evaluated by which of the following?


aProfit Margin


bTotal Assets Turnover


cDebt-equity ratio


dNone of the given options


View Answer Debt-equity ratio

Product costs include which of the following?


aSelling expenses


bGeneral expenses


cManufacturing overhead


dAdministrative expenses



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