Financial Management
661. Debt to Total Assets of a firm is .2. The Debt to Equity ratio would be:
- 0.80
- 0.25
- 1.00
- 0.75
Correct answer: (B)
0.25
662. An asset is a
- Source of fund
- Use of fund
- Inflow of funds
- none of the above
Correct answer: (B)
Use of fund
663. Current ratio of a concern is 1,its net working capital will be
- Positive
- Negative
- Nil
- None of the above
Correct answer: (C)
Nil
664. A very high current ratio indicates
- High efficiency
- flabby inventory
- position of more long term funds
- b or c
Correct answer: (D)
b or c
665. Which of the following is not a category of ratios?
- Profitability
- Management
- Efficiency
- Solvency
Correct answer: (B)
Management
666. Which of the following are microeconomic variables that help define and explain the discipline of finance?
- risk and return
- capital structure
- inflation
- 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?
- Profitability
- Liquidity
- Efficiency
- Timeliness
Correct answer: (D)
Efficiency
668. A company's ______________ is money owned to it by its customers.
- Liquidity
- Accounts Receivable
- Accounts Payable
- Inventory
- Owners' Equity
Correct answer: (B)
Accounts Receivable
669. ______________ depict relationships between items on a firm's financial statements.
- Financial proportions
- Fiscal relations
- Financial ratios
- Fiscal proportions
Correct answer: (C)
Financial ratios
670. "Share holder wealth" in a firm is represented by:
- The number of people employed in the firm
- The book value of the firm's assets less the book value of its liabilities
- The amount of salary paid to its employees
- 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