Total amount of depreciation charged on long term assets is classified as______________?
A. Accumulated depreciation
B. Depleted depreciation
C. Accumulated appreciation
D. Accumulated appreciation schedule
A. Accumulated depreciation
B. Depleted depreciation
C. Accumulated appreciation
D. Accumulated appreciation schedule
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..
When real rate is high, all the interest rates tend to be ___________?
A) Higher
B) Lower
C) Constant
D) None of the given options
A. discounted payback period
B. discounted rate of return
C. discounted cash flows
D. discounted project cost
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
The process of determining the present value of a payment or a stream of payments that is to be received in the future is known as:
A. Discounting
B. Compounding
C. Factorization
D. None of the given options
Future value is discounted back at the given interest rate to find out the current worth of the amount to be received in future..
A. dividend to stock ratio
B. sales to growth ratio
C. cash flow to price ratio
D. price to cash flow ratio