Search This Blog

Thursday, April 26, 2012

Finance Quiz - 8

1. Under which of the following factoring arrangements does the factor not make any prepayment to the client?
[A]Recourse factoring
[B]Invoice discounting
[C]Maturity factoring
[D]Non-recourse factoring


2. Which of the following statements is/are true?
I. Collection float indicates the amount of cheques issued by a company, awaiting payment by the bank.
II. If the collection float is more than the payment float, the company is said to have positive net float.
III. When the bank balance as per the books of the company is less than that in the bank’s books, the company can play the float.
[A]Only (II) above
[B]Only (III) above
[C]Both (II) and (III) above
[D]Both (I) and (III) above


3. Which of the following statements is/are true as per the Net Operating Income Approach?
I. Overall capitalization rate remains constant for all degrees of leverage.
II. Cost of equity remains constant for all degrees of leverage.
III. Cost of equity is a constant linear function of the debt-equity ratio.
IV. Cost of debt remains constant for all degrees of leverage.
[A]Only (III) above
[B]Only (IV) above
[C]Both (I) and (II) above
[D](I), (III) and (IV) above


4. Which of the following is not the source of long-term finance?
[A]Secured Premium Notes
[B]Fully Convertible Debentures
[C]Cumulative Preference Shares
[D]Commercial Paper


5. Which of the following will increase the duration of the operating cycle?
[A]Increase in the raw material storage period
[B]Decrease in the average collection period
[C]Increase in the average payment period
[D]Decrease in the conversion period


6. Which of the following appraisal criteria is useful for evaluating mutually exclusive projects providing similar service but having differing patterns of cost and unequal life spans?
[A]Net Present Value
[B]Internal Rate of Return
[C]Accounting Rate of Return
[D]Annual Capital Charge


7. Which of the following approaches to compute the cost of equity capital assumes that actual returns will be in line with the expected returns?
[A]Realized Yield Approach
[B]Bond Yield Plus Risk Premium Approach
[C]Earnings-Price Ratio Approach
[D]Dividend Capitalization Approach


8. Which of the following is/are not true?
I. If credit standards are made more stringent, sales are likely to decrease and less amount of money will be locked up in receivables.
II. If credit period is lengthened, sales are likely to increase but bad debt losses are likely to decrease.
III. If cash discount is increased, discount paid is likely to increase and amount of receivable is likely to reduce.
[A]Only (II) above
[B]Only (III) above
[C]Both (I) and (II) above
[D]Both (II) and (III) above


9. Which of the following is not an assumption made under the Modigliani and Miller approach for explaining the irrelevance of dividends policy for a firm?
[A]Existence of perfect capital markets
[B]Non-existence of differential tax rates for the dividend income and capital gains
[C]Non-influence of single investor on the share value
[D]Higher growth rate of dividends compared to cost of equity capital


10. Which of the following is spontaneous source of financing current assets?
[A]Note lending
[B]Trade credit
[C]Cash credit
[D]Letter of credit


11. Consider the following projects.
I. Project B which has a Net Benefit Cost Ratio less than one but more than zero.
II. Project C whose present value of inflows is less than the present value of outflows.
III. Project D which has a cost of capital less than the internal rate of return.
IV. Project E which has the highest annual capital charge compared to all other projects.
Which of the projects mentioned above could be accepted?
[A]Only (I) above
[B]Both (I) and (III) above
[C]Both (III) and (IV) above
[D](II), (III) and (IV) above


12. Which of the following statements is true about the terms of trade credit 4/10, net 30?
[A]A 10% cash discount is offered for payment before 30 days
[B]A 4% cash discount can be taken for payment before the 10th of the following month after invoicing
[C]A 10% cash discount can be taken if paid by the fourth day after invoicing
[D]No cash discount is offered from the eleventh day onwards after the date of purchase


13. Which of the following statements is true in case of a direct quote?
[A]Exchange margin is to be added to the bid rate and ask rate
[B]Exchange margin is to be added to the bid rate and deducted from the ask rate
[C]Exchange margin is to be deducted from the bid rate and the ask rate
[D]Exchange margin is to be deducted from the bid rate and added to the ask rate


14. Which of the following is not an appropriate hedging strategy for a likely devaluation of a currency?
[A]Reduce the level of cash
[B]Reduce the local borrowing
[C]Delay accounts payable
[D]Sell the weak currency forward


15. The following are the exchange rates quoted in NewYork:
CHF / $ 1.3591 / 93
$ / CAD 0.6570 / 72
The synthetic quotes of Swiss Franc per Canadian dollar are
[A]CHF / CAD 0.8929 / 33
[B]CHF / CAD 0.8930 / 32
[C]CHF / CAD 2.0683 / 86
[D]CHF / CAD 2.0680 / 89


0 comments:

Labels

#AhilyaBaiHolkarJayanti #Current Affairs #FamousPersons #GeneralKnowledge #GK #GS #Hindi #HinduSamrajyaDiwas #Ling #Management #ShivajiMaharaj 2012 2012 GK 2013 Current Affairs 2013 Daily Logo Quiz 2013 General Knowledge 2013 Logo Game Quiz 2014AugustCA 2014AugustGK 2014AugustGS 2014AugustIPC 2014CA 2014DecemberCA 2014DecemberGK 2014DecemberGS 2014DecemberIPC 2014JulyCA 2014JulyGK 2014JulyGS 2014JulyIPC 2014JuneCA 2014JuneGK 2014JuneGS 2014JuneIPC 2014MayCA 2014MayGK 2014MayGS 2014MayIPC 2014NovemberCA 2014NovemberGK 2014NovemberGS 2014NovemberIPC 2014OctoberCA 2014OctoberGK 2014OctoberGS 2014OctoberIPC 2014SeptemberCA 2014SeptemberGK 2014SeptemberGS 2014SeptemberIPC 2015GK 2015GScience 2015IndianPolity 2017 Current Affairs 2017August 2017December 2017November 2017October 2017September 2018 Current Affairs 2018FebruaryCA 2018JanuaryCA 2019GK 2020 Current Affairs 2020AugustCA 2020DecCA 2020GeneralScience 2020GK 2020JulyCA 2020JuneCA 2020MayCA 2020NovCA 2020OctCA 2020SepCA 2020SepGK 2021 April GK 2021 Current Affairs 2021 Feb GK 2021 January GK 2021 March GK 26 January A.R.M.Y. Accounting Adjectives Allahabad AllahabadQuiz Ancient History Angular Framework AngularJS April 2012 April 2013 Current Affairs April 2013 GK April 2013 Vocabulary Quiz April 2014 Aptitude Articles Assam August 2012 August2020 Authors Auto Quiz Automobile Quiz Automotive Quiz B School Banaras Bangalore Quiz Bangtan Sonyeondan Bank Exam Entrance Bank PO Exam Banking Banking Clerical Preparation Banking GK Banking Terminology BAT BCA Benares Benares Quiz Bengaluru Bharat Bollywood Quiz BollywoodPersons Books Boudh Festival Britain BTS Buddhism Festivals Bulletproof Boy Scouts Business Communication Business Current Affairs 2012 Business Ethics Business Law Business Management Business Quiz Business School Interview Business World C Programming Capital Market CAT Celebrity Quiz Christmas Quiz Cities of India City Quiz Civil Service Exams Class12English Class2Computer Class2English Class2GA Class2Maths Class3English Class3GA Class3GK Class3Maths Class4English Class7 Class7English Class8Science Class9English Cloud Computing CMMI-DEV Commodity and Derivatives Commodity Market Quiz Compensation and Benefits Compensation Management Computer Quiz Computers Conjunctive Adverbs Corporate Laws Countries Country Quiz Current Affairs Daily Quote Data Mining Data Science Database Management System DataBase Quiz DBMS DBMS True False Questions December 2012 Current Affairs December 2012 GK December 2013 Deepawali Delhi Delhi Quiz Demonetization Dev Anand Quiz Dev Sahab Dilli Diwali Diwali Quiz Dus ka Dum Eco Quiz Economics Economics MCQ Economics Multiple Choice Economics True False Quiz Email Etiquette English Environment Estimation Models EVS Facts about Allahabad Facts about Bangalore Facts about Delhi Facts about Dev Anand Facts about India Facts about Mahatma Gandhi Facts about Patna Facts about Rabindranath Tagore Facts about Varanasi FamousAuthors FamousBooks February 2012 February 2013 Current Affairs February 2013 GK February 2014 Festival Quiz Festivals of India FestivalWishes Filmy Quiz Finance Finance MCQ Finance Multiple Choice Finance Objective Questions Finance Quiz Finance True False Financial Accounting Financial Institutions Financial Management Fun Quiz FunTrivia Gautam Buddha Gender General Knowledge GeneralAwareness Geography Gerunds Ghrisneshwar Jyotirling Temple GK GK Quiz GK2016 GKToday GMAT Grammar GRE English GurPurab Gurudev Rabindranath Tagore GuruPurnima Gyan Guru HarryPotter HCM Helping Verbs Hindi Cinema Hindi Movies Quiz Hindi Synonyms Class 4 Hindi4 Hindu Festivals Hindu Gods Hindustan History Holi Quiz Holika Dahan HR HRD HRM Quiz Human Capital Management Human Resource Human Resource Management Quiz IAS IEO3English IEO4English IIFT IIM Interview IMO3Maths IMO4Maths IndependenceDay. SwatantraDiwas India Quiz Indian Budget Indian Cinema Indian Festivals Indian Polity and Constitution Information Technology International Days International Economics International Finance International Marketing Introduction to Management ISB Interview IT IT Aptitude Jain Festivals Janmashtmi January 2012 January 2013 Current Affairs January 2013 GK January 2014 Java Java Interview Questions Java MCQ Java Multiple Choice Java Programming July 2012 July 2013 Current Affairs July 2013 GK July 2013 Vocabulary Quiz July2020 June 2012 June 2013 GK June 2013 Vocabulary Quiz Jyotirling Kashi Vishwanath Mandir KBC KBC Questions Kedarnath Temple Know Allahabad Know Bangalore Know Delhi Know Patna Law MCQ Law Quiz Learn English LLB Quiz Logical Reasoning Logo Quiz Lohri Lord Buddha Macro Economics Mahatma Gandhi Quiz Maintenance Management MakarSankranti Mallikarjuna Jyotirlinga temple Management Management Accounting Management MCQ Management Quiz Managerial Economics Managerial Effectiveness Manipur MarathaKing March 2012 March 2013 Current Affairs March 2013 GK March 2013 Vocabulary Quiz March 2014 Mark II Function Point Analysis Marketing Marketing Management Quiz MAT MataVaishnoDevi Material Management Material Requirement Planning Materials Management May 2012 May 2013 Current Affairs May 2013 GK May 2013 Vocabulary Quiz May 2014 MBA MBA Entrance MBA IT MCA Medieval History Meghalaya Mental Ability Micro Economics Mizoram MM Modern History Monuments of India Multiple Choice Questions MyGov Quiz Nagaland National Days National Education Policy National Girl Child Day NCERT6Maths NCERT7Geog NCERT7Hindi NCERT7Maths NCERTGeography NCFM NEP2020 New Delhi Nouns November 2012 November 2012 GK November 2013 Numerical Ability OB OB Quiz October 2012 October 2012 GK Olympics Omkareshwar Jyotirlinga Temple Online Quiz Contest Operations Operations Management Organisation Behavior Organisation Behaviour Organizational Behaviour PADMAN Patliputra Patna Patna Quiz PCS Personality Quiz Personnel Administration Personnel Management Quiz PGCPM PGDBA PGDCA PGDIT Placement Papers of IT Companies PMP PMP Certification PMP Questions Portfolio Management Possessive Nouns Pratiyogita Darpan Prayag Production and Operation Management Programming Languages Project Management Project Management MCQ QMBlog QT Quant Quantitative Aptitude Quantitative Technique Quotations Rabindranath Tagore Quiz Rashtriya Ekta Divas RDBMS Republic Day Samanya Gyan Sangam Santa Claus SAP HANA SAT Satyamev Jayate Science Security Analysis September 2012 September 2012 GK Shree Mahakaleshwar Temple Shree Siddhivinayak Ganapati Temple Shree Somnath Temple Siddhartha SNAP Software Testing Spellings Sports SportsPersons Sri Ramanathaswamy Temple StatesOfIndia Static GK Strategic Finance Strategic Management Strategy Strategy True False SundayFun Swami Vivekanand Swami Vivekananda Quiz Synonyms Systems Quiz Taiwan National Day Tata Crucible Teasers Teej Temples Temples of India Time and Calendar TOEFL Trimbakeshwar Jyotirlinga Temple Tripura TV Show UK Quiz United Kingdom Vaidyanatha Jyotirlinga temple Varanasi Verbal Ability Vocab Vocabulary World Heart Day World Mental Health Day World Teachers Day World Tourism Day XLRI Interview