If you have Rs. 850 and you plan to save it for 4 years with an interest rate of 10%, what will be the future value of your savings?

A. Rs. 1,000
B. Rs. 1,244
C. Rs. 1,331
D. Rs. 1,464

Which of the following measure reveals how much profit a company generates with the money shareholders have invested?

A. Profit margin
B. Return on assets
C. Return on equity
D. Debt-equity ratio

A firm reports total liabilities of Rs. 300,000 and owner’s equity of Rs. 500,000. What would be the total worth of the firm’s assets?

A. Rs. 300,000
B. Rs. 500,000
C. Rs. 800,000
D. Rs. 1100,000

Which of the following statement is TRUE regarding debt?

A. Debt is an ownership interest in the firm.
B. Unpaid debt can result in bankruptcy or financial failure.
C. Debt provides the voting rights to the bondholders.
D. Corporation’s payment of interest on debt is fully taxable.

If you plan to save Rs. 5,000 with a bank at an interest rate of 8%, what will be the worth of your amount after 4 years if interest is compounded annually?

A. Rs. 5,400
B. Rs. 5,900
C. Rs. 6,600
D. Rs. 6,802

Which of the following statement about bond ratings is TRUE?

A. Bond ratings are typically paid for by a company’s bondholders.
B. Bond ratings are based solely on information acquired from sources other than the bond issuer.
C. Bond ratings represent an independent assessment of the credit-worthiness of bonds.
D. None of the given options

Which of the following ratios is NOT from the set of Asset Management Ratios?

A. Inventory turnover ratio
B. Receivable turnover
C. Capital intensity ratio
D. Return on assets

A firm has paid out Rs. 150,000 as dividends from its net income of Rs. 250,000. What is the retention ratio for the firm?

A. 12%
B. 25%
C. 40%
D. 60%

The most important item that can be extracted from financial statements is the actual ________ of the firm.

A. Net working capital
B. Cash flow
C. Net present value
D. None of the given options

Which of the following statement is considered as the accountant’s snapshot of firm’s accounting value as of a particular date?

A. Income statement
B. Balance sheet
C. Cash flow statement
D. Retained earning statement