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MBA Accounting MCQ Question Set 5

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1. ______________ are analysts who use information concerning current and prospective profitability of firms to assess the firm's fair market value.




2. Those liabilities which arise only on the happening of some event are called




3. There are ______________ types of financial statements analysis




4. ______ tells us after how much time period the amount of money will become double.




5. Horizontal analysis is also called




6. Interest paid (earned) on only the original principal borrowed (lent) is often referred to as ______________.




7. If gross profit is Rs 5,000 and the net profit is 25% of the gross profit the expenses must be




8. What are the earnings per share (EPS) for a company that earned Rs.100, 000 last year in after-tax profits, has 200,000 common shares outstanding and Rs.1.2 million in retained earning at the year end?




9. Which of the following affects the price of the bond?




10. Which of the following statements is most correct?




11. Pension fund and insurance obligation is an example of




12. Carrying cost always calculate on




13. Assume that the interest rate is greater than zero. Which of the following cash-inflow streams totalling Rs.1, 500 would you prefer? The cash flows are listed in order for Year 1, Year 2, and Year 3 respectively.




14. The higher the Future Value (FV) of the payment, the higher will be the:




15. In the Balance Sheet of a firm, the Total Debt-to-Equity Ratio is 2:1.The amount of Long Term and Short Term Sources are Rs.12 billion. What is the amount of owner’s Net Worth of the firm?




16. Which group of ratios shows the extent to which the firm is financed with debt?




17. Income statement comes under the category of




18. If you have to judge a project from its NPV, you will select the one with the ________




19. In the Balance Sheet amount of total Assets is Rs.10 million, Current Liabilities Rs.5 million and Owner Equity are Rs.2 million. What is the Long term Debt-to-Equity Ratio?




20. Financing decision determines




21. Life of security simply refer to




22. Ratio of present value of project’s future net cash flows to projects initial cash flow is




23. The ______________ is responsible for accounting, maintaining and auditing of the accounts.




24. The financial ratio measured as EBIT/Interest expense is known as the firm's




25. Fixed-based method is the subcategory of which of the following analysis.




26. Which of the following best represents the total inventory costs, T, where S is total usage of the inventory item for the period, Q is the q




27. Which of the following is NOT the present value of the bond?




28. ______ is concerned with the acquisition, financing, and management of assets with some overall goal in mind.




29. Oliver Incorporated has a current ratio equal to 1.6 and a quick ratio equal to 1.2. The company has $2 million in sales and its current liabilities are $1 million. What is the company’s inventory turnover ratio?




30. Share and bonds floats in _______




31. Which of the following is NOT an example of hybrid equity?




32. What are the three interrelated areas of finance?




33. Convertible debt is debt that




34. _______ means value at some future time of a present amount of money evaluated at a given interest rate.




35. When the market's Required Rate of Return for a particular Bond is equal to its Coupon Rate, the Bond is selling at




36. A Bond has a $1,000 Face Value, a Market Price of $1,115, and pays interest payments of $ 90 every year. What is the coupon rate?




37. A bond with a $1,000 face value and an 8 percent annual coupon pays interest semi-annually. The bond will mature in 15 years. The nominal yield to maturity (i) is 11 percent. What is the price of the bond today?




38. The goal of fundamental analysts is to find securities




39. _____ is the set of possible values that a random variable can assume and their association probabilities of occurrence.




40. Which of the following is not component of financial report?




41. If you want to deposit money into bank, what will be yours choice?




42. Interest paid (earned) on both the original principal borrowed (lent) and previous interest allowed (earned) is often referred to as ______________.




43. Which of the following is the activity which finance people are involved




44. The Bailey Brothers want to issue 20-year, zero coupon bonds that yield 9 percent. What price should it charge for these bonds if the face value is $1,000?




45. When bonds are issued, under which of the following category the value of the bond appears?




46. What type of long-term financing most likely has the following features: (1) it has an infinite and finite life (2) it pays dividends, and (3) its cash flows are expected to be a constant annuity stream.




47. PV of lump sum is simply termed as current value ofor




48. ______ Ratios are used to measure a firm’s ability to meet short-term obligations.mpor




49. Creditors turnover ratios comes under the category of




50. Dividend is approved by the shareholder in the ______________ at the recommendation of the directors.