Average Accounting Return is a measure of accounting profit relative to:
A. Book value
B. Intrinsic value
C. Cost
D. Market value
Profitability index (PI) rule is to take an investment, if the index exceeds:
A. -1
B. 0
C. 1
D. 2
When real rate is high, all the interest rates tend to be:
A. Higher
B. Lower
C. Constant
D. None of These
Which of the following is known as the group of assets such as stocks and bonds held by an investor:
A. Stock Bundle
B. Portfolio
C. Capital Structure
D. None of These
A standardized financial statement presenting all items of the statement as a percentage of total is:
A. a common-size statement
B. an income statemen
C. a cash flow statement
D. a balance sheet
Which of the following is the process of planning and managing a firm‟s long-term investments:
A. Capital Structuring
B. Capital Rationing
C. Capital Budgeting
D. Working Capital Management
The principal amount of a bond at issue is called:
A. Par value
B. Coupon value
C. Present value of an annuity
D. Present value of a lump sum
The difference between current assets and current liabilities is known as:
A. Surplus Asset
B. Short-term Ratio
C. Working Capital
D. Current Ratio
A company having a current ratio of 1 will have ____net working capital:
A. Positive
B. Negative
C. zero
D. None of the given options
Which of the following is measured by profit margin:
A. Operating efficiency
B. Asset use efficiency
C. Financial policy
D. Dividend policy
