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Where does Netprofit appear in the Balance Sheet?
Net profit appears on liabilities of balance sheet . Net profit is added to capital.
Difference bitwen trail balance and profi and loss account?
Trial balance is the statement which shows the different items in the debit side and creditside of its format and in the end (generally) amounts both the sides would be same. it is prepared to know the mathematical accuracy. its format contains: Particulars-debit-creidit. Profit and loss account is an account which is prepared to find out the netprofit(or netloss) and its usually prepared after the trading account. Format of P&L account is Particulars-debit-particulars-credit
Who determine the market price of a share of common stock?
Choose the correct option among the choices given below:1. Who determine the market price of a share of common stock?a. The board of directors of the firmb. The stock exchange on which the stock is listedc. The president of the companyd. Individuals buying and selling the stock2. What should be the focal point of financial management in a firm?a. The number and types of products or services provided by the firmb. The minimization of the amount of taxes paid by the firmc. The creation of value for shareholdersd. The dollars profits earned by the firm3. Which of the following would generally have unlimited liability?a. A limited partner in a partnershipb. A shareholder in a corporationc. The owner of a sole proprietorshipd. A member in a limited liability company (LLC)4. Which of the following is equal to the average tax rate?a. Total tax liability divided by taxable incomeb. Rate that will be paid on the next dollar of taxable incomec. Median marginal tax rated. Percentage increase in taxable income from the previous period5. Felton Farm Supplies, Inc., has 8 % return on total assets of Rs.300,000 and a netprofit margin of 5 %. What are its sales?a. Rs. 3, 750,000b. Rs. 480, 000c. Rs. 300, 000d. Rs. 1, 500,000Financial Management Quiz 1Spring Semester 20096. Which of the following would not improve the current ratio?a. Borrowing on short term to finance additional fixed assetsb. Issue long-term debt to buy inventoryc. Sell common stock to reduce current liabilitiesd. Sell fixed assets to reduce accounts payable7. With continuous compounding at 8% for 20 years, what is the approximate futurevalue of a Rs.20,000 initial investment?a. Rs. 52,000b. Rs .93,219c. Rs. 99,061d. Rs. 915,2408. In 2 years you are to receive Rs.10,000. If the interest rate were to suddenlydecrease, the present value of that future amount to you would __________.a. Fallb. Risec. Remain unchangedd. Incomplete information9. Cash budgets are prepared from past:a. Balance sheetsb. Income statementsc. Income tax and depreciation datad. None of the given optionsFinancial Management Quiz 1Spring Semester 200910. Which of the following is part of an examination of the sources and uses offunds?a. A forecasting techniqueb. A funds flow analysisc. A ratio analysisd. Calculations for preparing the balance sheet11. An annuity due is always worth _____ a comparable annuity.a. Less thanb. More thanc. Equal tod. Cannot be found12. As interest rates go up, the present value of a stream of fixed cash flows _____.a. Goes downb. Goes upc. Stays the samed. Cannot be found13. ABC Company is expected to generate Rs.125 million per year over the next threeyears in free cash flow. Assuming a discount rate of 10%, what is the presentvalue of that cash flow stream?a. Rs. 375 millionb. Rs. 338 millionc. Rs. 311 milliond. Rs. 211 million14. If we were to increase ABC company' cost of equity assumption, what would weexpect to happen to the present value of all future cash flows?a. An increaseb. A decreasec. No changed. Incomplete informationFinancial Management Quiz 1Spring Semester 200915. In proper capital budgeting analysis we evaluate incremental __________ cashflows.a. Accountingb. Operatingc. Before-taxd. Financing16. A capital budgeting technique through which discount rate equates the presentvalue of the future net cash flows from an investment project with the project'sinitial cash outflow is known as:a. Payback periodb. Internal rate of returnc. Net present valued. Profitability index17. Discounted cash flow methods provide a more objective basis for evaluating andselecting an investment project. These methods take into account:a. Magnitude of expected cash flowsb. Timing of expected cash flowsc. Both timing and magnitude of cash flowsd. None of the given options18. Which of the followings make the calculation of NPV difficult?a. Estimated cash flowsb. Discount ratec. Anticipated life of the businessd. All of the given options19. From which of the following category would be the cash flow received from salesrevenue and other income during the life of the project?a. Financing activityb. Operating activityc. Investing activityd. All of the given optionsFinancial Management Quiz 1Spring Semester 200920. Which of the following technique would be used for a project that has non -normal cash flows?a. Multiple internal rate of returnb. Modified internal arte of returnc. Net present valued. Internal rate of return
