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Financial Management and Planning
Which of the following is a measure of Debt Service capacity of a firm:
Current Ratio
Acid Test Ratio
Interest Coverage Ratio
Debtors Turnover
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Financial Management and Planning
In Ratio Analysis, the term Capital Employed refers to:
Equity Share Capital
Net worth
Shareholders’ Funds
None of the above
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Financial Management and Planning
What type of ratios measure the liquidity of specific assets and the efficiency of managing assets?
Leverage ratios
Profitability ratios
Liquidity ratios
Activity ratios
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Financial Management and Planning
A firm’s working capital consists of investment in:
Current Assets
Current liabilities
Short term assets
Both a and c
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Financial Management and Planning
The ability of a firm to convert an asset to cash is called:
Liquidity
Solvency
Return
Marketability
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Financial Management and Planning
What does a decreasing inventory turnover ratio usually indicate about a firm?
The firm is selling more inventory
The firm is managing its inventory we//
The firm is inefficient in the management of inventory
Both A and B
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Financial Management and Planning
_______ of a firm refers to the composition of its long-term funds its capital structure.
Capitalization
Over capitalization
Under capitalization
Market Capitalization
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Financial Management and Planning
The investment in total current assets is known as:
Gross working capital
Permanent working capital
Temporary working capital
Net working capital
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Financial Management and Planning
Which of the following is not a category of ratios:
Profitability
Management
Efficiency
Solvency
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Financial Management and Planning
__________ depict relationships between items on a firm’s financial statements:
Financial proportions
Fiscal relations
Financial ratios
Fiscal proportions
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