1611. 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

1612. 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 *

1613. 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

1614. Standard company had net sales of 7,50,000 over the past year. During that time, average recievables were 150,000 assuming as 365- day year, What was the average collection period?

A. 5 Days
B. 36 Days
C. 48 Days
D. 73 Days *

1615. 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

1616. In which type of market, new securities are traded ?

A. Primary market *
B. secondary market
C. Tertiary market
D. None of the given options

1617. Which of the following ratios are particularly interesting to short-term creditors ?

A. Liquidity ratios *
B. Long-term solvency ratios
C. Profitability ratios
D. Market value ratios

1618. Quick ratio is also known as __________?

A. Current ratio
B. Acid-test ratio *
C. Cash ratio
D. Solvency ratio

1619. A portion of profits, which a company retains itself for further expansion , is known as _______.

A. Dividends
B. Retained earnings *
C. Capital gain
D. None of the given options

1620. Which of the following is measured by profit margin ?

A. Operating efficiency *
B. Asset use efficiency
C. Financial policy
D. Dividend policy