Financial Management
521. Which is not a service of a factor?
- Administrating Sales Ledger
- Advancing against Credit Sales
- Assuming bad debt losses
- 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
- 4 times
- 25%
- 400%
- 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
- Replacement Cost
- Realizable Value
- Historical Cost
- Standard Cost
Correct answer: (C)
Historical Cost
524. Inventory is generally valued as lower of
- Market Price and Replacement Cost
- Cost and Net Realizable Value
- Cost and Sales Value
- Sales Value and Profit
Correct answer: (B)
Cost and Net Realizable Value
525. The type of collateral (security) used for short-term loan is
- Real estate
- Plant & Machinery
- Stock of good
- Equity share capital
Correct answer: (C)
Stock of good
526. Which of the following is not applicable to commercial paper
- Face Value
- Issue Price
- Coupon Rate
- None of the above
Correct answer: (D)
None of the above
527. Which of the following is not a usual type of lease arrangement?
- Sale & leaseback
- Goods on Approval
- Leverage Lease
- Direct Lease
Correct answer: (B)
Goods on Approval
528. Risk-Return trade off implies
- Minimization of Risk
- Maximization of Risk
- Ignorance of Risk
- Optimization of Risk
Correct answer: (D)
Optimization of Risk
529. Dividend Payout Ratio is:
- PAT Capital
- DPS ÷ EPS
- Pref. Dividend ÷ PAT
- Pref. Dividend ÷ Equity Dividend
Correct answer: (B)
DPS ÷ EPS
530. In Current Ratio, Current Assets are compared with:
- Current Profit
- Current Liabilities
- Fixed Assets
- Equity Share Capital
Correct answer: (B)
Current Liabilities