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The Finance Aptitude Test Trivia Quiz

Question 1 of 3

Q1 . There is no difference between the capital market line and the security market line as both the terms are the same.

Q2 . ____________ is defined as the length of time required to recover the initial cash out-lay.

Q3 . "Shareholder wealth" in a firm is represented by

Q4 . By definition, currency appreciation occurs when

Q5 . Which type of account is entered in profit & loss a/c?

Q6 . 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?

Q7 . In two periods total costs amount to Rs. 50,000 and Rs. 40,000 against the production of 20,000 and 15,000 units respectively. Determine the marginal cost per unit and fixed cost

Q8 . During the accounting period, sales revenue is Rs. 25,000 and accounts receivable increases by Rs. 8,000. What will be the amount of cash received from customers for the period?

Q9 . Which one of these not shown on profit & loss a/c?

Q10 . What are the earnings per share for a company that earned Rs? 100,000 last year in after-tax profits, has 200,000 common shares outstanding and Rs. 1.2 million in retained earnings at the year-end?

Q11 . The market price of a share of common stock is determined by:

Q12 . How many years will it take to pay off a Rs. 11,000 loan with an Rs. 1,241.08 annual payment and a 5% interest rate?

Q13 . Type of contract which involves future exchange of assets between independent parties at a specified price is classified as

Q14 . In order to obtain an income of Rs. 650 from 10% stock at Rs. 96, one must make an investment of

Q15 . If required rate of return > Coupon rate, the bond will be valued at

Q16 . The long-run objective of financial management is to:

Q17 . A profitability index of .85 for a project means that

Q18 . 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?

Q19 . Time value of money supports the comparison of cash flows recorded at different time period by

Q20 . A company can improve (lower) its debt-to-total assets ratio by doing which of the following?

Q21 . 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?

Q22 . A man invested Rs. 1552 in a stock at 97 to obtain an income of Rs. 128. The dividend from the stock is approximately

Q23 . Debt Equity Ratio is 3:1, the amount of total assets Rs.20 lac, current ratio is 1.5:1 and owned funds Rs.3 lac. What is the amount of current asset?

Q24 . When goods are sent to the consignee‐ the journal entry passed

Q25 . Capital market line is

Q26 . Kanji Company had sales last year of Rs. 265 million, including cash sales of Rs. 25 million. If its average collection period was 36 days, it's ending accounts receivable balance is closest to. (Assume a 365-day year.)

Q27 . Risk of two securities with different expected return can be compared with

Q28 . Beta reflects stock risk for investors which is usually

Q29 . Which of the following statements is correct?

Q30 . If the weighting of equity in total capital is 1/3, that of debt is 2/3, the return on equity is 15% that of debt is 10% and the corporate tax rate is 32%, what is the Weighted Average Cost of Capital (WACC)?

Q31 . A man invested Rs. 4455 in Rs. 10 shares quoted at Rs. 8.25. If the rate of dividend be 12%, his annual income is

Q32 . Ninety-percent of X company's total sales of Rs. 600,000 is on credit. If its year-end receivables turnover is 5, the average collection period (based on a 365-day year) and the year-end receivables are, respectively.

Q33 . Rahul has an amount of Rs. 3,00,000 which is invested in a business. He desires a 15% return on his fund. It is known from the past cost data analysis that fixed costs are Rs. 1,50,000 per annum and variable costs of operation are 60% of sales. Determine sales volume to get a 15% return. Also tell shut down point of the business, if he would spend Rs 50,000 even if a business has to be closed

Q34 . If the coupon rate is constant, the value of bond when close to maturity will be

Q35 . ____________ is the length of time between the firm's actual cash expenditure and its own cash receipt.

Q36 . ABC Company manufactures and sells trucks at Rs. 75,000 each made up of Direct Materials Rs. 30,000, Direct Labor Rs. 8,000 Variable Overheads is Rs. 12,000, Fixed overheads is Rs. 6,000, Variable selling expenses is Rs. 3,000 Royalty is Rs. 4,000 Profit is Rs. 7,000. There is enough idle capacity. If the company decides to sell 4 trucks to ABC Company under the same management, what should be the minimum price to be charged?

Q37 . Peter invests a part of Rs. 12,000 in 12% stock at Rs. 120 and the remainder in 15% stock at Rs. 125. If his total dividend p.a. is Rs. 1360, how much does he invest in 12% stock at Rs. 120?

Q38 . A firm's inventory turnover ratio (ITR) is 5 times the cost of goods sold (COGS) of Rs. 800,000. If the ITR is improved to 8 times while the COGS remains the same, a substantial amount of funds are released from or additionally invested in inventory. In fact

Q39 . A 6% stock yields 8%. The market value of the stock is

Q40 . ABC Ltd manufactures a single product and sells for Rs. 30 per unit. There is an increased demand for the product. The Direct Material is Rs. 8, Direct labor (2 hours) is Rs. 4, and Variable overheads are Rs. 4. The labor force is working at full capacity and no extra time is available. Mr. X has approached ABC Ltd with a request for the manufacture special order at Rs. 8,000. Also, 600 hours of labor will be required and the cost of the order will be Rs. 3000 for Direct Material. Variable overhead per hour will be Rs. 2. Should the order be accepted? Why?

Q41 . There is no difference between the capital market line and the security market line as both the terms are the same.

Q42 . ____________ is defined as the length of time required to recover the initial cash out-lay.

Q43 . "Shareholder wealth" in a firm is represented by

Q44 . By definition, currency appreciation occurs when

Q45 . Which type of account is entered in profit & loss a/c?

Q46 . 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?

Q47 . In two periods total costs amount to Rs. 50,000 and Rs. 40,000 against the production of 20,000 and 15,000 units respectively. Determine the marginal cost per unit and fixed cost

Q48 . During the accounting period, sales revenue is Rs. 25,000 and accounts receivable increases by Rs. 8,000. What will be the amount of cash received from customers for the period?

Q49 . Which one of these not shown on profit & loss a/c?

Q50 . What are the earnings per share for a company that earned Rs? 100,000 last year in after-tax profits, has 200,000 common shares outstanding and Rs. 1.2 million in retained earnings at the year-end?

Q51 . The market price of a share of common stock is determined by:

Q52 . How many years will it take to pay off a Rs. 11,000 loan with an Rs. 1,241.08 annual payment and a 5% interest rate?

Q53 . Type of contract which involves future exchange of assets between independent parties at a specified price is classified as

Q54 . In order to obtain an income of Rs. 650 from 10% stock at Rs. 96, one must make an investment of

Q55 . If required rate of return > Coupon rate, the bond will be valued at

Q56 . The long-run objective of financial management is to:

Q57 . A profitability index of .85 for a project means that

Q58 . 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?

Q59 . Time value of money supports the comparison of cash flows recorded at different time period by

Q60 . A company can improve (lower) its debt-to-total assets ratio by doing which of the following?

Q61 . 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?

Q62 . A man invested Rs. 1552 in a stock at 97 to obtain an income of Rs. 128. The dividend from the stock is approximately

Q63 . Debt Equity Ratio is 3:1, the amount of total assets Rs.20 lac, current ratio is 1.5:1 and owned funds Rs.3 lac. What is the amount of current asset?

Q64 . When goods are sent to the consignee‐ the journal entry passed

Q65 . Capital market line is

Q66 . Kanji Company had sales last year of Rs. 265 million, including cash sales of Rs. 25 million. If its average collection period was 36 days, it's ending accounts receivable balance is closest to. (Assume a 365-day year.)

Q67 . Risk of two securities with different expected return can be compared with

Q68 . Beta reflects stock risk for investors which is usually

Q69 . Which of the following statements is correct?

Q70 . If the weighting of equity in total capital is 1/3, that of debt is 2/3, the return on equity is 15% that of debt is 10% and the corporate tax rate is 32%, what is the Weighted Average Cost of Capital (WACC)?

Q71 . A man invested Rs. 4455 in Rs. 10 shares quoted at Rs. 8.25. If the rate of dividend be 12%, his annual income is

Q72 . Ninety-percent of X company's total sales of Rs. 600,000 is on credit. If its year-end receivables turnover is 5, the average collection period (based on a 365-day year) and the year-end receivables are, respectively.

Q73 . If the coupon rate is constant, the value of bond when close to maturity will be

Q74 . ____________ is the length of time between the firm's actual cash expenditure and its own cash receipt.

Q75 . Rahul has an amount of Rs. 3,00,000 which is invested in a business. He desires a 15% return on his fund. It is known from the past cost data analysis that fixed costs are Rs. 1,50,000 per annum and variable costs of operation are 60% of sales. Determine sales volume to get a 15% return. Also tell shut down point of the business, if he would spend Rs 50,000 even if a business has to be closed

Q76 . ABC Company manufactures and sells trucks at Rs. 75,000 each made up of Direct Materials Rs. 30,000, Direct Labor Rs. 8,000 Variable Overheads is Rs. 12,000, Fixed overheads is Rs. 6,000, Variable selling expenses is Rs. 3,000 Royalty is Rs. 4,000 Profit is Rs. 7,000. There is enough idle capacity. If the company decides to sell 4 trucks to ABC Company under the same management, what should be the minimum price to be charged?

Q77 . Peter invests a part of Rs. 12,000 in 12% stock at Rs. 120 and the remainder in 15% stock at Rs. 125. If his total dividend p.a. is Rs. 1360, how much does he invest in 12% stock at Rs. 120?

Q78 . A firm's inventory turnover ratio (ITR) is 5 times the cost of goods sold (COGS) of Rs. 800,000. If the ITR is improved to 8 times while the COGS remains the same, a substantial amount of funds are released from or additionally invested in inventory. In fact

Q79 . A 6% stock yields 8%. The market value of the stock is

Q80 . ABC Ltd manufactures a single product and sells for Rs. 30 per unit. There is an increased demand for the product. The Direct Material is Rs. 8, Direct labor (2 hours) is Rs. 4, and Variable overheads are Rs. 4. The labor force is working at full capacity and no extra time is available. Mr. X has approached ABC Ltd with a request for the manufacture special order at Rs. 8,000. Also, 600 hours of labor will be required and the cost of the order will be Rs. 3000 for Direct Material. Variable overhead per hour will be Rs. 2. Should the order be accepted? Why?