Managerial Economics and Financial Analysis Mid - II, November - 2014

1.The relationship between two or more persons who agree to share profits of the business carried on by all or any of them acting for all is called
  • Sole Trading
  • Partnership
  • Joint Stock Company
  • None of the above
Answer: B
2.The Working Capital is also called as
  • Fixed Capital
  • Tangible Fixed Capital
  • Circulating Capital
  • None of the above
Answer: C
3.The Indian Companies Act was enacted in
  • 1956
  • 1932
  • 1952
  • 1962
Answer: A
4._______________ is an art of recording the business transactions in the books of original entry and the ledgers.
  • Book Keeping
  • Book Binding
  • Book Recording
  • None
Answer: A
5.“Net Profit” Can be found out by preparing
  • Trading Account
  • Profit & Loss Account
  • Balance Sheet
  • Trial Balance
Answer: B
6.______________ is the life blood of the business
  • Finance
  • Cost
  • Price
  • Production
Answer: A
7.______________ is the Non-Discounted Cash flow method of Capital Budgeting
  • NPV
  • IRR
  • ARR
  • None of the Above
Answer: C
8.______________ is the Representative Personal Account
  • Salary A/c
  • Capital A/c
  • Buildings A/c
  • Purchases A/c
Answer: B
9.The Statement of “Debit and Credit balances of Ledger Accounts” is called as
  • Trial Balance
  • Ledger
  • Journal
  • Balance Sheet
Answer: A
10.Decisions relates to the selection of assets in which fund will be invested by a firm
  • Finance
  • Investment
  • Dividend
  • None
Answer: B
11.nder Capital budgeting, only NPV proposals are with considered _______________ Value
Answer: Positive
12.Liability of Shareholder limited to _________________
Answer: Limited to Face Value of Share
13.______________________ is the desirable Current Ratio
Answer: 2:1
14.The Statement reveals the financial position of a business at given date is called ___________
Answer: Balance Sheet / Position Statement
15.Debit What Comes in: Credit What Goes Out is account Principle of _________________
Answer: Real A/c
16.The Assets which do not have any physical form, Cannot be seen or touched are called as ______________
Answer: Intangible Asset
17.Inventory Turnover ratio is also called as ___________________________
Answer: Stock Turnover Ratio
18.Partner who does not take active interest in managing the affairs of Partnership is called ____________
Answer: Sleeping Partner
19.A Unit of Capital of Joint Stock Company is Called as ____________________
Answer: Share
20.Falls in the Value of asset because of obsolescence is called __________________
Answer: Depreciation