An income available for shareholders after deducting expenses and taxes from revenues is classified as______________?
A. Net income
B. Net earnings
C. Net expenses
D. Net revenues
A. Net income
B. Net earnings
C. Net expenses
D. Net revenues
If you plan to save Rs. 5,000 with a bank at an interest rate of 8%, what will be the worth of your amount after 4 years if interest is compounded annually?
A. Rs. 5,400
B. Rs. 5,900
C. Rs. 6,600
D. Rs. 6,802
FV = PV * (1+ i) ^n
= 5,000 (1+0.08) ^4
= 6802
A company having a current ratio of 1 will have ________ net working capital.
A. Positive
B. Negative
C. zero
D. None of the given options
NWC = CA – CL
If Current ratio = 1:1, its means assets are equal to liabilities.
So, net working capital is zero..
Which of the following ratios are particularly interesting to short term creditors?
A. Liquidity Ratios
B. Long-term Solvency Ratios
C. Profitability Ratios
D. Market Value Ratios