Fm1

LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Your Answer

written off Funds from operations , Goodwill written off , Funds from long term loans

Multiple Choice Single Answer Question The Pay Bank period is calculated as Correct Answer Cash outlay / Annual cash inflow Your Answer

Cash outlay / Annual cash inflow

True/False Question

The basic limitation of the capital budgeting process lies in this fact that it involves various estimations Correct Answer True Your Answer

True

Multiple Choice Multiple Answer Question Debt Service coverage ratio may be considered to be one of the most important ratios calculated by the Correct Answer Bankers , Financial Institutions Your Answer

Bankers , Financial Institutions

Multiple Choice Multiple Answer Question The current ratio of a company is 2:1 ; Which of the following suggestions have no effect on the ratio Correct Answer Cash collected from customers , Bills Receivable dishonoured , Purchase stocks against cash Your Answer Cash collected from customers , Bills Receivable dishonoured , Purchase stocks against cash Multiple Choice Single Answer Question Fixed Income bearing securities for the computation of Capital gearing ratio consists of Correct Answer Debentures Your Answer

Debentures

True/False Question

Return on Assets is a ratio of relationship between Assets and Sales Correct Answer False Your Answer

False

Multiple Choice Multiple Answer Question Undue increase in Gross Profit ratio may indicate