Economics Business and Finance MCQs Test 05 Preparation Online Business and Finance MCQs Test 05 Preparation Online 1. A schedule of balances drawn from the ledger is called:A. A statement of accountB. A trial balanceC. A profit and loss accountD. A balance sheet Loading... 2. Finance is concerned with:A. Recording utilization of fundsB. Arrangement of fundsC. All of the aboveD. Identification of sources of funds Loading... 3. Under-capitalization refers to a situation where:A. The capital base does not justify the amount of earnings made and needs to be enhancedB. The earnings ratio of the company equals the industry's earnings ratioC. The capital base is larger for the earnings madeD. The capital base justifies the earnings made Loading... 4. Break-even-point is a situation where:A. Profits-Costs B. Business is at the point of dissolutionC. Profits are negativeD. There is no profit no loss Loading... 5. The relationship between EBIT and EPS gives:A. Financial leverageB. Normal leverageC. Operating leverageD. Composite leverage Loading... 6. In the pay back period method of capital budgeting, investment is divided by:A. Constant annual cash flowB. Cumulative cash flowC. Annual profitsD. Return on investment Loading... 7. Current Ratio is the ratio of:A. Current assets to current liabilitiesB. Fixed assets to total liabilitiesC. Current liabilities to current assetsD. Current assets to total liabilities Loading... 8. Debt Equity Ratio refers to the ratio of:A. Total debt to equity share capitalB. Debtors to equity share capitalC. Long term debt to shareholders' equityD. Long term debt to equity share capital Loading... 9. Cost of goods sold refers to:A. None of the aboveB. Cost of materials, labour and overheadsC. Sales minus profitsD. Sales minus gross profits Loading... 10. Trading on equity' means:A. Trading in equity share capitalB. Use of equity share capital for trade financingC. Use of fixed-interest borrowed funds for getting a higher return on equityD. Having no borrowed funds Loading... Loading... Related PostsBusiness and Finance MCQs Test 07 Preparation OnlineBusiness and Finance MCQs Test 04 Preparation OnlineBusiness and Finance MCQs Test 03 Preparation OnlineBusiness and Finance MCQs Test 02 Preparation OnlineBusiness and Finance MCQs Test 01 Preparation OnlineBusiness and Finance MCQs Test 08 Preparation Online Continue Reading Previous Business and Finance MCQs Test 04 Preparation OnlineNext Business and Finance MCQs Test 06 Preparation Online Leave a Reply Cancel replyYour email address will not be published. Required fields are marked *Comment * Name * Email * Website Δ