401. If the following is an element of dividend policy?
Production capacity
Change in Management
Informational content
Debt service capacity
Correct answer: (C) Informational content
402. In stock dividend:
Authorized capital always increases
Paid up capital always increases
Face value per share decreases
Market price for share decreases
Correct answer: (D) Market price for share decreases
403. Cheques deposited in bank may not be available for immediate use due to
Payment Float
Recceipt Float
Net Float
Playing the Float
Correct answer: (B) Recceipt Float
404. Float management is related to
Cash Management
Inventory Management
Receivables Management
Raw Materials Management
Correct answer: (A) Cash Management
405. 5Cs of the credit does not include
Collateral
Character
Conditions
None of the above
Correct answer: (D) None of the above
406. Which of the following is not a part of credit policy?
Collection Effort
Cash Discount
Credit Standard
Paying Practices of debtors
Correct answer: (D) Paying Practices of debtors
407. If the closing balance of receivables is less than the opening balance for a month then which one is true out of
Collections>Current Purchases
Collections>Current Sales
Collections<Current Purchases
Collections < Current Sales
Correct answer: (B) Collections>Current Sales
408. 80% of sales of 10,00,000 of a firm are on credit. It has a Receivable Turnover of 8. What is the Average collection period (360 days a year) and Average Debtors of the firm?
45 days and 1,00,000
360 days and 1,00,000
45 days and 8,00,000
360 days and 1,25,000
Correct answer: (A) 45 days and 1,00,000
409. If cash discount is offered to customers, then which of the following would increase?