- Dividend policy model
- Dividend growth model
- Dividend price model
- All of these
- b
Accounting MCQs
Accounting MCQs are included in this portion of ETEST Website.All Accounting MCQs are solved with short detail. ETEST Team updates ETEST Website on daily basis.
The difference between an investments market value and its cost is called ———– of the investment?
- Economic value
- Book value
- Net present value
- Future value
- c
Which one of the following is the rate of return that firm’s creditors demand on new borrowing?
- Cost of preferred stock
- Cost of debt
- Cost of common stock
- Cost of retained earnings
- b
Rule of 72 for finding the number of periods is fairly applicable to which of the following range of discount rates?
- 5% to 20%
- 4% to 25%
- 2% to 8%
- 10% to 50%
- a
A borrower is able to pay Rs. 40000 in 5 years. Given a discount rate of 12 percent. What amount of money the lender should lend?
- Rs. 18,256
- Rs. 14,186
- Rs. 22,697
- 28,253
- c
In which type of business, all owners share in gains and losses and all have unlimited liabilities for all business debts?
- General partnership
- Sole proprietorship
- Limited partnership
- Corporation
- a
-
Two people start a Shop / Store. Both Partners must be involved in business activities, it is called General Partnership.
Which one of the following is not a form of business organization?
- Sole proprietorship
- Joint stock company
- Co-operative society
- Partnership
- c
-
Cooperative Society is basically a voluntary association.
Which of the following statement shows assets, liabilities and net worth as on a specific date?
- Owner’s Equity Statement
- Balance Sheet
- Income Statement
- Cash Flow Statement
- b
-
Balanced Sheet is prepared on the end of an accounting period.
Which of the following term refers to the use of debt financing?
- Operating Leverage
- Manufacturing Leverage
- Financial Leverage
- None of these
- c
-
Financial Leverage is an investment strategy that is implemented on borrowed money.
Sales Rs. 25000 Variable cost Rs. 8000 Fixed cost Rs. 5000 Break even sales in value:
- Rs. 7936
- Rs. 8333
- Rs. 7353
- Rs. 9090
- c