Question46:-'Lintner model’ is related with
A:-Credit policy
B:-Optimum cash balance
C:-Working capital management
D:-Dividend policy
Correct Answer:- Option-D
Question47:-In working capital management the concept of Zero Working Capital (ZWC) =
A:-Inventories + receivables — payables
B:-Current assets — cash — current liabilities
C:-Working capital — cash equivalents
D:-Receivables — payables
Correct Answer:- Option-A
Question48:-The term ‘lethargy’ in cash management refers
-Time taken by post office for transferring cheque from customer to firm
:-Time taken to processing the cheque within the firm and sending to bank
C:-Time taken by the bank in collecting the payment from customers bank
D:-Difference between the balance in cash book and pass book
Correct Answer:- Option-B
Question49:-Which of the following would increase the working capital ?
A:-Issue of Bonus shares
B:-Issue of Right shares
C:-Conversion of debt into capital
D:-Acquisition of asset by issuing capital
Correct Answer:- Option-B
Question50:-Management of X Ltd. raises the unit selling price of a product by 10% as a result of increase of variable cost of
the product by 10%. The fixed cost remains unchanged. The BEP of the company
A:-Increases
B:-Decreases
C:-Remain the same
D:-Can't say
Correct Answer:- Option-C
Question51:-A company has earned net profit of Rs. 2,00,000. Its P/V ratio and margin of safety are 25% and 50%
respectively. What is the total fixed cost of the company ?
A:-Rs. 1,00,000
-Rs. 2,00,000
C:-Rs. 4,00,000
D:-Rs. 8,00,000
Correct Answer:- Option-B
Question52:-For a given period profit under absorption costing is less than the profit under marginal
costing if
A:-Production exceeds sales
B:-Production is equal to sales
C:-Sales are in excess of production
D:-Sales is the key factor
Correct Answer:- Option-C

Question53:-In make or buy decisions, it is profitable to buy from outside only when the suppliers price is below the firm's
own

A:-Variable cost
B:-Contribution

ixed cost

D:-Total cost

Correct Answer:- Option-A

Question54:-A firm is having interest liability of Rs. 20,000 and preference dividend of Rs. 36,000. Given the tax rate of 40%
and dividend tax rate of 20%, financial break even level will be

A:-Rs. 56,000
-Rs. 63,200
C:-Rs. 70,400
D:-Rs. 92,000
Correct Answer:- Option-D