The most important item that can be extracted from financial statements is the actual ________ of the firm.

Related Mcqs:

1. Which of the following item provides the important function of shielding part of income from taxes?

   A. Inventory
   B. Supplies
   C. Machinery
   D. Depreciation

2. A firm has paid out Rs. 150,000 as dividends from its net income of Rs. 250,000. What is the retention ratio for the firm?

   A. 12%
   B. 25%
   C. 40%
   D. 60%

3. A firm reports total liabilities of Rs. 300,000 and owner’s equity of Rs. 500,000. What would be the total worth of the firm’s assets?

   A. Rs. 300,000
   B. Rs. 500,000
   C. Rs. 800,000
   D. Rs. 1100,000

4. Which of the following ratios are intended to address the firm’s financial leverage?

   A. Liquidity Ratios
   B. Long-term Solvency Ratios
   C. Asset Management Ratios
   D. Profitability Ratios

5. Which of the following set of ratios relates the market price of the firm’s common stock to selected financial statement items?

   A. Liquidity Ratios
   B. Leverage Ratios
   C. Profitability Ratios
   D. Market Value Ratios

6. The investment decision is the most important of the firm’s three major decisions, when it comes to:

   A. Value creation
   B. Value addition
   C. Value proposition
   D. Value deletion

7. In financial markets, period of maturity less than one year of financial instruments is classified as________________?

   A. Short-term
   B. Long-term
   C. Intermediate term

8. In financial markets, period of maturity within one to five years of financial instruments is classified as_________________?

   A. Short-term
   B. Long-term
   C. Intermediate term
   D. Capital term

9. Financial security kept by non-financial corporations is____________________?

   A. Deposit cheque
   B. Distribution cost
   C. Short term treasury bills
   D. Short term capital cost

10. In financial markets, period of maturity more than five years of financial instruments is classified as___________________?

    A. Intermediate term
    B. Capital term
    C. Short-term
    D. Long-term