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1. Interest paid by an investment company will come under which kind of activity preparin a cash flow statement? a Cash flow from Investing Activities b. Cash Flow from Financing Activities c. No Cash Flow d. Cash Flow from Operating Activities 2. Dividend paid by a manufacturing company is classified under which kind of activity while preparing cash flow statements? a. Cash flow from Investing Activities b. Cash Flow from Financing Activities c. No Cash Flow d. Cash Flow from Operating Activities 3. Financing activities bring changes in a. Size and composition in owners' equities b. Borrowings of the enterprise c. Size and composition of owners' equities and borrowings of the enterprise d. None of the options are correct 4. A financial statement that portrays the cash inflows and outflows of cash during a particular period of time is called- a. An Income Statement b. Statement of Retained Earnings c. Balance Sheet d. Statement of Cash Flow 5. The term "Capital Structure" refers to the relationship between a. Current assets and current liabilities b. Debentures, preference share and equity share capital c. Sum of all non-current assets d. Sum of all outsider's liabilities 6. Which of the following is not a pattern of capital structure? a Equity shares and Preference shares b. Equity shares, preference shares and debentures C. Equity shares only d. Equity shares and short-term borrowings 7. The manner in which an organization's assets are financed is referred to as its- a Capital Structure b. Financial Structure c Asset Structure d. Owners Structure

8. Business risk is influenced by- a Revenue b. Variable cast C Fixed assets d. All of the above 9. Liquid assets is determined by a Current assets-Stock-Prepaid expenses b. Current assets + Stock+prepaid expenses C. Current assets + Prepaid expenses d. None of the above 10.If sales is $1000,000, sales returns is $ 50000, Profit Before Tax is $ 2,00 tax is 40%, Net profit ratio is a 12.63% b. 20% c. 10% d. 50% 11 Higher the ratio, the more favorable it is, doesn't stand true for a Operating ratio b. Liquidity ratio c. Net profitratio d. Stock tumover ratio 12 If selling price is foxed 25% above the cost the Gross Profit ratio is a 13% b. 28% c. 26% d 20% 13. Overall Profitability ratios are based on a Investments b. Sales Botha and b d None of the above 14 The ideal level of liquid ratio is a. 3.3 b. 4:4 c. 5.5 d. All of the above

15. Which of the following is not included in current assets? a Debtors b. Stock C. Cash at bank d. Cash in hand 16.Determine Operating ratio, if operating expenses is $60,000, Sales is $ 9,40,000, Sales Return is $40,000 and Cost of net goods sold is $ 6,60,000 a 80% b. 15% C. 25% d. 11% 17.Quick ratio is 1.8:1, current ratio is 27:1 and current liabilities are $ 60,000. Determine value of stock. a $54,000 b. $60,000 c. $ 162,000 d. None of the above 18. Return on equity capital is calculated on basis of a. Funds of equity shareholders b. Equity capital only c. Either a or b d. None of the above 19. Which of the following groups use financial accounting information? a Management, employees, shareholders and lenders b. Suppliers, customers and competitors c. Tax authorities, government and general public d. All of the above 20. Which of the following persons are most likely to use accounting information? a Business owners b. Lending Institutions c. Suppliers d. All of the above