711. The time required to process and execute an order is called ______________.
allowed time
lead time
accepted time
fixed time
Correct answer: (B) lead time
712. The dividend-pay out ration is equal to
The dividend yield plus the capital gains yield
Dividends per share divided by earnings per share
Dividends per share divided by par value per share
Dividends per share divided by current price per share
Correct answer: (B) Dividends per share divided by earnings per share
713. Working Capital management is managing
Long term assets
Short term assets and liabilities
Long term liabilities
Only short term assets
Correct answer: (B) Short term assets and liabilities
714. The acquisition of land by issuing common stock is
a noncash transaction that is not reported in the body of a statement of cash flows
a cash transaction and would be reported in the body of a statement of cash flows
a noncash transaction and would be reported in the body of a statement of cash flows
only reported if the statement of cash flows is prepared using the direct method
Correct answer: (A) a noncash transaction that is not reported in the body of a statement of cash flows
715. If a company has both an inflow and outflow of cash related to property, plant, and equipment, the
two cash effects can be netted and presented as one item in the investing activities section
cash inflow and cash outflow should be reported separately in the investing activities section
two cash effects can be netted and presented as one item in the financing activities section
cash inflow and cash outflow should be reported separately in the financing activities section
Correct answer: (B) cash inflow and cash outflow should be reported separately in the investing activities section
716. A company would be expected to generate small amounts of cash provided by operating activities during the
introductory phase
growth phase
maturity phase
decline phase
Correct answer: (B) growth phase
717. Debt Equity Ratio is 3:1, the amount of total assets Rs.20 lac,current ratio is 1.5:1 and owned funds Rs.3 lac. What is the amount of current asset?
Rs.5 lac
Rs.3 lac
Rs.12 lac
none of the above
Correct answer: (C) Rs.12 lac
718. In the balance sheet amount of total assets is Rs.10 lac, current liabilities Rs.5 lac & capital & reserves are Rs.2 lac .What is the debt equity ratio?
1;1
1.5:1
2:1
none of the above
Correct answer: (D) none of the above
719. Current ratio is 2:5. Current liability is Rs.30000. The Net working capital is
Rs.18,000
Rs.45,000
Rs.(-) 45,000
Rs.(-)18000
Correct answer: (D) Rs.(-)18000
720. Which of the following statements is false?
No rules of thumb apply to the interpretation of financial ratios
Financial ratios can indicate areas of potential strength and weakness
Financial ratios are predictive
Financial ratios can serve as screening devices
Correct answer: (C) Financial ratios are predictive