The formula to calculate the present value of a single cash flow is given by:

A. CF1 / (1+r)n
B. C2 / (1+r)
C. C0 + C (1+r)n
D. None of these

Choose from the following a symptom which is not relating to “Over Trading”?

A. Cash shortage
B. Low inventory turnover ratio
C. Low current ratio
D. High inventory turnover ratiO

The Yield to Maturity of a bond is the same as_____________?

A. The present value of the bond
B. The bonds internal rate of return
C. The future value of the bond
D. None of these

Who of the following make a broader use of accounting information?

A. Accountants
B. Financial Analysts
C. Auditors
D. Marketers

Financial analysts make extensive use of accounting information; they are some of the most important end users. Understanding finance helps accountants recognize what types of information are particularly valuable and, more generally, how accounting information is actually used (and abused) in practice.

A. Net loss
B. Net worth
C. Markup
D. Markdown

In case of international business which of the given factor(s) must be considered?

A. Role of foreign exchange
B. Balance of payments
C. Attitude of Governments
D. All of the given options

If you have Rs. 850 and you plan to save it for 4 years with an interest rate of 10%, what will be the future value of your savings?

A. Rs. 1,000
B. Rs. 1,244
C. Rs. 1,331
D. Rs. 1,464

FV = PV * (1+ i) ^n
= 850 * (1+0.1)^4
= 1244

Which of the following measure reveals how much profit a company generates with the money holders have invested?

A. Profit Margin
B. Return on Assets
C. Return on Equity
D. Debt-Equity Ratio

A firm reports total liabilities of Rs. 300,000 and owner’s equity of Rs. 500,000. What would be the total worth of the firm’s assets?

A. Rs. 300,000
B. Rs. 500,000
C. Rs. 800,000
D. Rs. 1100,000

Assets = Liabilities + Owner’s Equity
= 300,000 + 500,000
= 800,000

Which of the following statement is TRUE regarding debt?

A. Debt is an ownership interest in the firm.
B. Unpaid debt can result in bankruptcy or financial failure.
C. Debt provides the voting rights to the bondholders.
D. Corporation’s payment of interest on debt is fully taxable.