Which of the following terms refers to the use of debt financing?
Which of the following terms refers to the use of debt financing?
A. Operating Leverage
B. Financial Leverage
C. Manufacturing Leverage
D. None of the given options
Finance Mcqs
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Standard Company had net sales of Rs. 750,000 over the past year. During that time, average receivables were Rs. 150,000. Assuming a 365-day year, what was the average collection period?
Standard Company had net sales of Rs. 750,000 over the past year. During that time, average receivables were Rs. 150,000. Assuming a 365-day year, what was the average collection period?A. 5 days
B. 36 days
C. 48 days
D. 73 days
The average collection period is calculated by dividing the average balance of accounts receivable by total net credit sales for the period and multiplying the quotient by the number of days in the period.
use the following formula:
(Average Receivables/Net Sales)*365
150,000/750,000*365 = 73 days
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Net sales=750,000
A/C receivables= 150,000
days in a year =365
Collection period= (A/C Receivables/ net sales)*days in a year
= (150,000/750,000)*365= 73 days -
Which of the following costs are reported on the income statement as the cost of goods sold?
Which of the following costs are reported on the income statement as the cost of goods sold?A. Product cost
B. Period cost
C. Both product cost and period cost
D. Neither product cost nor period cost -
Finance is vital for which of the following business activity (activities)?
Finance is vital for which of the following business activity (activities)?
A. Marketing Research
B. Product Pricing
C. Design of marketing and distribution channels
D. All of the given options -
Which of the following refers to the cash flows that result from the firm‟s day-to-day activities of producing and selling?
Which of the following refers to the cash flows that result from the firm‟s day-to-day activities of producing and selling?
A. Operating Cash Flows
B. Investing Cash Flows
C. Financing Cash Flows
D. All of the given options -
Cash flow from assets involves which of the following component(s)?
Cash flow from assets involves which of the following component(s)?
A. Operating cash flow
B. Capital spending
C. Change in net working capital
D. All of the given options -
Financial policy is evaluated by which of the following?
Financial policy is evaluated by which of the following?
A. Profit Margin
B. Total Assets Turnover
C. Debt-equity ratio
D. None of the given options -
Product costs include which of the following?
Product costs include which of the following?
A. Selling expenses
B. General expenses
C. Manufacturing overhead
D. Administrative expenses -
Period costs include which of the following?
Period costs include which of the following?
A. Selling expense
B. Raw material
C. Direct labor
D. Manufacturing overhead -
Earning per share is computed as:
Earning per is computed as:
A. ____________Earning After Tax_____________
No of common s outstanding
B. ____No of common s outstanding___
Earning after Tax
C. ____Earning before Tax____
Common s
D. None of Them