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.Management Sciences
Category: Finance Mcqs
Bonds that can be converted into shares of common stock are classified as_________?
A. Convertible bonds
B. Stock bonds
C. Shared bonds
D. Common bonds
The Board of Directors sets company-wide policy and advices the CEO and other senior executies, who manage the company’s:
A. Managerial activities
B. Year-to-Year activities
C. Day-to-Day activities
D. Financial activities
Low price for earnings ratio is result of________________?
A. Low riskier firms
B. High riskier firms
C. Low dividends paid
D. High marginal rate
If book value is greater than market value comparison with investors for future stock are considered as_______________?
A. Pessimistic
B. Optimistic
C. Experienced
D. Inexperienced
Which of the following ratios are particularly interesting to short term creditors?
A. Liquidity Ratios
B. Long-term Solvency Ratios
C. Profitability Ratios
D. Market Value Ratios
Which of the following costs are reported on the income statement as the cost of goods sold?
A. Product cost
B. Period cost
C. Both product cost and period cost
D. Neither product cost nor period cost
Which of the following equation is known as Cash Flow (CF) identity?
A. CF from Assets = CF to Creditors – CF to Stockholder
B. CF from Assets = CF to Stockholders – CF to Creditors
C. CF to Stockholders = CF to Creditors + CF from Assets
D. CF from Assets = CF to Creditors + CF to Stockholder
The conflict of interest between stockholders and management is known as:
A. Agency problem
B. Interest conflict
C. Management conflict
D. Agency cost
If a company revaluates its fixed assets, the current ratio of the company will:
A. Improve if assets are revalued upward
B. Remain unaffected
C. Improve if assets are revalued downwards
D. Undergo change only if liabilities are remaining constant
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