ACC501 Final Term Solved Objective

ACC501 Business Finance Final Term · Solved Objective For Preparation of Final · Term Exam

Q1. Which of the following issue is NOT covered by “Investment” area of finance?

Best mixture of financial investment

International aspects of corporate finance

Associated risks and rewards Pricing financial assets

Q2. Period costs include which of the following?

Selling expense

Raw material Direct labor

Q3. Product costs include which of the following?

Selling expenses General expenses

Administrative expenses

Q4. Financial policy is evaluated by which of the following?

Debt-equity ratio

Q5. Cash flow from assets involves which of the following component(s)?

Operating cash flow Capital spending Change in net working capital

All of the given options

Q6. Which of the following refers to the cash flows that result from the firm‟s day-to- day activities of producing and selling?

Operating Cash Flows

Investing Cash Flows Financing Cash Flows All of the given options

Q7. Finance is vital for which of the following business activity (activities)?

Marketing Research Product Pricing Design of marketing and distribution channels

All of the given options

Q8. Which of the following costs are reported on the income statement as the cost of goods sold?

Product cost Period cost

Both product cost and period cost

Neither product cost nor period cost

Q9. 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?

5 days 36 days 48 days

73 days

Q10. Which of the following terms refers to the use of debt financing?

Operating Leverage

Financial Leverage

Manufacturing Leverage

Q11. In which type of market, new securities are traded?

Primary market

Secondary market Tertiary market

Q12. Which of the following ratios are particularly interesting to short-term creditors?

Liquidity Ratios Long-term Solvency Ratios Profitability Ratios Market Value Ratios