Financial Management

521. Which is not a service of a factor?

  1. Administrating Sales Ledger
  2. Advancing against Credit Sales
  3. Assuming bad debt losses
  4. None of the above
Correct answer: (D)
None of the above

522. If the sales of the firm are. 60,00,000 and the average debtors are. 15,00,000 then the receivables turnover is

  1. 4 times
  2. 25%
  3. 400%
  4. 0.25 times
Correct answer: (A)
4 times

523. If no information is available, the General Rule for valuation of stock for balance sheet is

  1. Replacement Cost
  2. Realizable Value
  3. Historical Cost
  4. Standard Cost
Correct answer: (C)
Historical Cost

524. Inventory is generally valued as lower of

  1. Market Price and Replacement Cost
  2. Cost and Net Realizable Value
  3. Cost and Sales Value
  4. Sales Value and Profit
Correct answer: (B)
Cost and Net Realizable Value

525. The type of collateral (security) used for short-term loan is

  1. Real estate
  2. Plant & Machinery
  3. Stock of good
  4. Equity share capital
Correct answer: (C)
Stock of good

526. Which of the following is not applicable to commercial paper

  1. Face Value
  2. Issue Price
  3. Coupon Rate
  4. None of the above
Correct answer: (D)
None of the above

527. Which of the following is not a usual type of lease arrangement?

  1. Sale & leaseback
  2. Goods on Approval
  3. Leverage Lease
  4. Direct Lease
Correct answer: (B)
Goods on Approval

528. Risk-Return trade off implies

  1. Minimization of Risk
  2. Maximization of Risk
  3. Ignorance of Risk
  4. Optimization of Risk
Correct answer: (D)
Optimization of Risk

529. Dividend Payout Ratio is:

  1. PAT Capital
  2. DPS ÷ EPS
  3. Pref. Dividend ÷ PAT
  4. Pref. Dividend ÷ Equity Dividend
Correct answer: (B)
DPS ÷ EPS

530. In Current Ratio, Current Assets are compared with:

  1. Current Profit
  2. Current Liabilities
  3. Fixed Assets
  4. Equity Share Capital
Correct answer: (B)
Current Liabilities
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