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20/07/2087 14:25 91-124-3061412 MCKINSEY & CO. INDIA Page 37/58 FINANCIAL ACCOUNTING PROGRAMME: EPBM-V Maximum Marks: 100 Time Allowed: | hour This is @ closed beok examinettion. Attempt all questions Figures in the bracket indicate marks for a question 3. Tick (¥) the correct one (ay The following is a part of financial statementsi~ Directors’ Report (ii) Notesto accounts (iii) Auditors’ Report (b) Bills receivable is.- (i) anasset Gi) | a liability Gil) an income (ivy * equity (©) % Cash equivalent includes highly liquid investments with a aaturity period up to:- (i). » 43 days - (ii) 90 days Git) 180 days iv) None of the above () Equity is- . (i) Exvess.of liabilities over assets” (ii) “Excess of assets over liabilities (iii) Excess of expenses over income {iv) Excess of income over expenses Which of the following is not a fundamental accounting assumption: (i) Materiality (ii) “Accrual (ii) Consistency {iv) Going concern ¥ Which of the followin: an indicator of liquidity:- 20/07/2807 14:25 91-124-3061412 WOKINSEY 2 00. gy) (b) (i) 0 anora Gy Current ratio (i) Debt equity ratie (iii) Interest coverage ratio Operating margin is a profitability indicator based on: (i) * Sales Gi Capital employed (ii) Equity (iv) Total income The following is not a leverage ratio: (i) Debt equity ratio. (it) Debt ration (ii), ROL P/E multiple is computed () Profit and-equity Gi) Market price per share and equity (iii) Market price and earning per share (iv) Profit and earning per share A higher debt ratio is: (i) always good Gi) always bad iii) can’ say (8) Which of the following statements is correct? (i) a company cannot pay dividend in the absence of profit ) a cOmpany cannot lise general-reserve.to pay dividend. (iii) 2 company cannot use revaluation reserve to issue bonus shares, () Interest payable (out not yet paid) on dues to supplier is (m) In the accounting equation, where de you show the item “Advance to Supplie (3) an operating expense (i) a von-operating expense (ii) not an expense at all (i) Asset (ii) Liability (iii) Equity PAGE 38/58 2/07/2087 14:25 91 124-3061412 MocIngey & CD. INDIA coy at might & change | () a profidioss (i) fresh issue of shares (ii) repurchase of sheres (iv) all of the above quity indicate? (0) A financial transaction is: (an event. (ii) measurable in monetary terms. : : Gi) est affect the financial position ofthe business entity (iv) all of the above Gv) only (i) and (ii) of the above (p) Issue of bortus shares is not reflected in: (i) Balance Sheet Gi) Cash Flow Statement (ii) All of the above (@ IE ROL is-15% , debt ratio 60% , and imterest impact (PBIATIPAT) is 1.25, how much is the Retum on E (ROE) (i) 18% (ii) 30% (iii) 25% (2) IFROI> bocrowing cost, which of the following telationships is tue: (i) ROE*ROL (ii) ROESROL (iii) ROE=ROI (6) A long term lender shal look athe following rato before deciding to lend: {j) Debs equity ratio (ii) Current ratio (it) Financial Slack (1) When other income is greater than non-operating

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