Financial Management

661. Debt to Total Assets of a firm is .2. The Debt to Equity ratio would be:

  1. 0.80
  2. 0.25
  3. 1.00
  4. 0.75
Correct answer: (B)
0.25

662. An asset is a

  1. Source of fund
  2. Use of fund
  3. Inflow of funds
  4. none of the above
Correct answer: (B)
Use of fund

663. Current ratio of a concern is 1,its net working capital will be

  1. Positive
  2. Negative
  3. Nil
  4. None of the above
Correct answer: (C)
Nil

664. A very high current ratio indicates

  1. High efficiency
  2. flabby inventory
  3. position of more long term funds
  4. b or c
Correct answer: (D)
b or c

665. Which of the following is not a category of ratios?

  1. Profitability
  2. Management
  3. Efficiency
  4. Solvency
Correct answer: (B)
Management

666. Which of the following are microeconomic variables that help define and explain the discipline of finance?

  1. risk and return
  2. capital structure
  3. inflation
  4. All of the above
Correct answer: (D)
All of the above

667. Which of the following is not identified as one of the four main financial objectives of a firm?

  1. Profitability
  2. Liquidity
  3. Efficiency
  4. Timeliness
Correct answer: (D)
Efficiency

668. A company's ______________ is money owned to it by its customers.

  1. Liquidity
  2. Accounts Receivable
  3. Accounts Payable
  4. Inventory
  5. Owners' Equity
Correct answer: (B)
Accounts Receivable

669. ______________ depict relationships between items on a firm's financial statements.

  1. Financial proportions
  2. Fiscal relations
  3. Financial ratios
  4. Fiscal proportions
Correct answer: (C)
Financial ratios

670. "Share holder wealth" in a firm is represented by:

  1. The number of people employed in the firm
  2. The book value of the firm's assets less the book value of its liabilities
  3. The amount of salary paid to its employees
  4. The market price per share of the firm's common stock
Correct answer: (D)
The market price per share of the firm's common stock
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