971. A higher inventory ratio indicates
A. Better inventory management
B. Quicker turnover
C. Both ‘A’ and ‘B’
D. None of the above

972. A Low Return on Investment Ratio (ROI) indicates
A. Improper utilization of resources
B. Over investment in assets
C. Both ‘A’ and ‘B’
D. None of the above

973. Following is (are) the characteristic(s) of a budget
A. It outlines projected activities
B. Expressions are made in quantitative terms
C. It is for a fixed period
D. All of the above

974. Sales expenditure budget is prepared by estimating the expense(s) of
A. Advertisement
B. Market analysis
C. Salesman’s salary
D. All of the above

975. Budgeting is difficult to apply in the following cases
A. Products subjected to rapid changes
B. Job order manufacturing
C. Uncertain market conditions
D. All of the above

976. A Master Budget consists of
A. Sales budget
B. Production budget
C. Material budget
D. All of the above

977. Which of the following has the highest cost of capital?
A. Loans
B. Equity shares
C. Bonds
D. Preference shares

978. The overall capitalisation rate and the cost of debt remain constant for all degrees of financial leverage is advocated by
A. Traditional Approach
B. Net Income Approach
C. Net operating Income Approach
D. M-M Approach

979. The cost of debt capital is calculated on the basis of
A. Net proceeds
B. Annual Interest
C. Capital
D. Arumal Depreciation

980. Which of the following is not included in the assumption on which Myron Gorden proposed a model on Stock valuation
A. Retained earning the only source of financing
B. Finite Life of the firm
C. Taxes do not exist
D. Constant rate of return on firms investment.

NOTE
IF YOU THINK ANY OF THE MCQ ABOVE IS WRONG.
PLEASE COMMENT WITH CORRECT ANSWER AND ITS DETAIL EXPLANATION IN COMMENT BOX.
THANK YOU

This Post Has One Comment

  1. Hello 🙂 I just want to tell you that I am all new to blogging and certainly savored your web page. Very likely I’m want to bookmark your blog post . You definitely come with terrific articles and reviews. Thanks a bunch for sharing your web site.

Leave a Reply