Marks 1

1 A) Operating Cash flow

2 B) Financing Cash flow
3 C) None of the both
4 D) Both Option A & B
Questions If you wish to compute economic earnings and are trying to decide how to account for inventory,
_______.
No Options Details Select Option
Marks 1
1 A) FIFO is better than LIFO
2 B) LIFO is better than FIFO
3 C) FIFO and LIFO are equally good
4 D) FIFO and LIFO are equally bad
5 E) none of the above
Questions Given the results of the study by Clayman, you would __________ the stocks of firms with high
ROEs and
__________ the stocks of firms with low ROEs.
No Options Details Select Option
Marks 1
1 A) want to buy, want to buy
2 B) want to buy, not want to buy
3 C) not want to buy, want to buy
4 D) not want to buy, not want to buy
5 E) be unable to buy, want to buy
Questions Over a period of thirty-odd years in managing investment funds, Benjamin Graham used the
approach of
investing in the stocks of companies where the stocks were trading at less than their working capital value.
The average return from using this strategy was approximately ______.
No Options Details Select Option
Marks 1
1 A) 5%
2 B) 10%
3 C) 15%
4 D) 20%
5 E) none of the above
Questions In periods of inflation, accounting depreciation is __________ relative to replacement cost and real
economic
income is ________.
No Options Details Select Option
Marks 1
1 A) overstated, overstated
2 B) overstated, understated
3 C) understated, overstated
4 D) understated, understated
5 E) correctly, correctly
Questions A firm has a P/E ratio of 12 and a ROE of 13% and a market to book value of __________.
No Options Details Select Option
Marks 1
1 A) 0.64
2 B) 0.92
3 C) 1.08
4 D) 1.56
5 E) none of the above