Question
According to Du Pont Identity, ROE is affected by which of the following? Select correct option:
Operating efficiency
Asset use efficiency
Financial Leverage
All of the given options
Question
A portion of profits, which a company retains itself for further expansion, is known as: Select correct option:
Dividends
Retained Earnings
Capital Gain
None of the given options
Question
Which of the given statement is correct?
Select correct option:
Less income will be available for taxation due to debt financing
More income will be available for taxation due to debt financing (Not Sure)
There will be no effect on taxable income due to debt financing
None of the given options
Question
Which of the following is disadvantage of sole proprietor business? Select correct option:
Easy to start
Business income is considered as personal income
Limited sources
None of the given options
Question
Which of the following item(s) is(are) not included while calculating Operating Cash Flows?
Select correct option:
Depreciation
Interest
Expenses related to firm’s financing of its assets
All of the given options
Question
A company having a current ratio of 1 will have __________ net working capital. Select correct option:
Positive
Negative
zero
None of the given options
Question
The accounting definition of income is:
Select correct option:
Income = Current Assets – Current Liabilities
Income = Fixed Assets – Current Assets
Income = Revenues – Current Liabilities
Income = Revenues – Expenses
Question
Which of the following is the most significant financial advantage of corporate form? Select correct option:
Easy to raise money
Double taxation
Easy to start
All business income is divided among shareholder
Question
Which of the following terms refers to the use of debt financing? Select correct option:
Operating Leverage
Financial Leverage
Manufacturing Leverage
None of the given options
Question
Which one of the following is NOT a liquidity ratio?
Select correct option:
Current Ratio
Quick Ratio
Cash Coverage Ratio
Cash Ratio