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

Balance Sheet is based upon which of the following formula?

A. Assets = Liabilities – Stockholder’s equity
B. Assets + Liabilities = Stockholder’s equity
C. Assets + Stockholder’s equity = Liabilities
D. Assets = Liabilities + Stockholder’s equity

Quick Ratio is also known as_________?

A. Current Ratio
B. Acid-test Ratio
C. Cash Ratio
D. None of the given options

Which of the following is a special case of annuity, where the stream of cash flows continues forever?

A. Ordinary Annuity
B. Special Annuity
C. Annuity Due
D. Perpetuity

You just won a prize, you can either receive Rs. 1000 today or Rs. 1,050 in one year. Which option do you prefer and why if you can earn 5 percent on your money?

A. Rs. 1,000 because it has the higher future value
B. Rs. 1,000 because you receive it sooner
C. Rs. 1,050 because it is more money
D. Either because both options are of equal value

Which of the following ratios are particularly interesting to shortterm creditors?

A. Liquidity Ratios
B. Long-term Solvency Ratios
C. Profitability Ratios
D. Market Value Ratios

In which form of Business, owners have limited liability?

A. sole proprietorship
B. partnership
C. joint stock company
D. none of the above

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

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

The process of determining the present value of a payment or a stream of payments that is to be received in the future is known as:

A. Discounting
B. Compounding
C. Factorization
D. None of the given options

You need Rs. 10,000 to buy a new television. If you have Rs. 6,000 to invest at 5 percent compounded annually, how long will you have to wait to buy the television?

A. 8.42 years
B. 10.51 years
C. 15.75 years
D. 18.78 years