Financial Management

761. Banks generally prefer Debt Equity Ratio at:

  1. 1:1
  2. 1:3
  3. 2:1
  4. 3:1
Correct answer: (C)
2:1

762. 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
  2. 1.5:1
  3. 2:1
  4. none of the above
Correct answer: (D)
none of the above

763. Current ratio is 4:1.Net Working Capital is Rs.30,000.Find the amount of current Assets.

  1. Rs.10,000
  2. Rs.40,000
  3. Rs.24,000
  4. Rs.6,000
Correct answer: (B)
Rs.40,000

764. The ideal quick ratio is

  1. 2:1
  2. 1:1
  3. 5:1
  4. None of the above
Correct answer: (B)
1:1

765. Trading & Profit & loss account and balance sheet is prepared from

  1. Ledger balance
  2. Cash and bank balances
  3. Cash book and bank book
  4. Trial Balance
Correct answer: (D)
Trial Balance

766. Financial decision involve;

  1. Investment, financing and dividend decision
  2. Investment, financing and sales decision
  3. Financing, dividend and cash decision
  4. None of these
Correct answer: (A)
Investment, financing and dividend decision

767. ______________ are an estimate of a firm's future income and expenses, based on its past performance, its current circumstances, and its future plans.

  1. Financial statements
  2. Profitability statements
  3. Statements of cash flow
  4. Forecasts
Correct answer: (D)
Forecasts

768. Which of the followings is return paid to shareholders out of profit of a company?

  1. Profit
  2. Dividend
  3. Bonus shares
  4. Ex-gratia
Correct answer: (B)
Dividend

769. A portion of profits, which a company distributes among its shareholders, is known as:

  1. Dividends
  2. Retained Earnings
  3. Capital Gain
  4. None of the given options
Correct answer: (A)
Dividends

770. Planning for future growth is called:

  1. Capital Budgeting
  2. Working Capital Management
  3. Financial Forecasting
  4. None of the above
Correct answer: (C)
Financial Forecasting
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