661. Which of the following is measured by profit margin?
A.Operating efficiency
B.Asset use efficiency
C.Financial policy
D.Dividend policy

662. 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

663. 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

664. In which type of market, new securities are traded?
A.Primary market
B.Secondary market
C.Tertiary market
D.None

665. 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?
A.5 days
B.36 days
C.50 days
D.73 days

666. 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

667. Which of the following is a series of constant cash flows that occur at the end of each period for some fixed number of periods?
A.Ordinary annuity
B.Annuity due
C.Perpetuity
D.None

668. A model which makes an assumption about the future growth of dividends is known as:
A.Dividend Price Model
B.Dividend Growth Model
C.Dividend Policy Model
D.All

669. _________ refers to the most valuable alternative that is given up if a particular investment is undertaken?
A.Sunk cost
B.Opportunity cost
C.Financing cost
D.All

670. _______________refers to the extent to which fixed-income securities (debt and preferred stock) are used in a firm’s capital structure?
A.Financial risk
B.Portfolio risk
C.Operating risk
D.Market risk

NOTE
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