108/23

8.

10.

11.

12.

13.

14.

15.

In case the shares are forfeited, the capital account is debited by
A) Nominal value of shares B) Called up amount on shares
C) Paid up amount on shares D) Uncalled up amount on shares

. The minimum rate of return that a firm must earn on its investments to maintain the

market value of its shares.
A) Internal Rate of Return (IRR) B) Cost of Capital
C) Net Present Value (NPV) D) Total Shareholder Return (TSR)

What is the capital structure of a company ?

A) The combination of debt and equity that a company uses to finance its
operations

B) The total amount of assets a company has
C) The total amount of liabilities a company has
D) The net worth of a company

A company with a high debt-to-equity ratio is said to have
A) Low financial leverage B) High financial leverage
C) Neutral financial leverage D) None of the above

What is a stock split?

A) A process by which a company increases its number of outstanding shares

8) A process by which a company decreases its number of outstanding shares

C) A process by which a company changes its dividend policy
)

D) None of the above

Vidhya Enterprises require 90000 units of a certain item annually. The cost per unit
is Rs.3, the cost per purchase order is Rs. 300 and the inventory carrying cost is
Rs.6 per unit per year. What is 7۶

A) 4500 units B) 3000 units C) 1800 units D) 1500 units
What is the formula for calculating the current ratio ?

A) Current Assets / Total Assets B) Current Liabilities / Current Assets
C) Total Liabilities / Current Assets D) Current Assets / Current Liabilities

What is the purpose of the cash conversion cycle ?

A) To measure a company’s ability to convert cash into profits

B) To measure a company’s ability to generate cash from operations

C) To measure a company’s ability to convert inventory into cash

D) To measure a company’s ability to manage its short-term liquidity needs