In a statement of cash flows, a company investing in short-term financial investments and in fixed assets results in______________?

Related Mcqs:

1. Real rate expected cash flows and nominal rate expected cash flows must be______________?

   A. Accelerated
   B. Equal
   C. Different
   D. Inflated

2. In alternative investments, the constant cash flow stream is equal to initial cash flow stream in the approach which is classified as __________?

   A. greater annual annuity method
   B. equivalent annual annuity
   C. lesser annual annuity method
   D. zero annual annuity method

3. Cash flows occurring with more than one change in sign of cash flow are classified as________?

   A. Non-normal cash flow
   B. Normal cash flow
   C. Normal costs
   D. Non-normal costs

4. If a company revaluates its fixed assets, the current ratio of the company will:

   A. Improve if assets are revalued upward
   B. Remain unaffected
   C. Improve if assets are revalued downwards
   D. Undergo change only if liabilities are remaining constant

5. The cash flows occurring with more than one change in sign of cash flow are classified as __________?

   A. non-normal cash flow
   B. normal cash flow
   C. normal costs
   D. non-normal costs

6. A series of constant cash flows that occur at the end of each period for some fixed number of periods is ____________ .

   A. an ordinary annuity
   B. annuity due
   C. multiple cash flows
   D. perpetuity

7. Which of the following is a series of constant cash flows that occur at the end of each period for some fixed number of periods?

   A. Ordinary annuity
   B. Annuity due
   C. Perpetuity
   D. None of the given options

8. Cash flows that could be generated from an owned asset by company but not use in project are classified as_________________?

   A. Occurred cost
   B. Mean cost
   C. Opportunity costs
   D. Weighted cost

9. Which of the following strategy belongs to restrictive policy regarding size of investments in current assets?

   A. To maintain a high ratio of current assets to sales
   B. To maintain a low ratio of current assets to sales
   C. To less short-term debt and more long-term debt
   D. To more short-term debt and less long-term debt

10. The risk of losses on financial investments caused by an adverse price movements

    A. Systematic Risk
    B. Idiosyncratic Risk
    C. Financial Risk
    D. Business Risk

    Submitted by: Yasir Alam