14/10/2019 Tutor Test (Accounts) 0Comments by Gate Academy Welcome to your Tutor Test (Accounts) You have 10 minutes to complete the test of 20 questions. Instructions 1. Answer ALL Questions. 2. Make sure you are prepared before you start the test. 3. Make sure you have a steady internet connection. 4. Do not attempt to reload the test page once you begin. 5. Fill the text field below with your correct details before you begin Full Name Email Address 1. Which one of the following is not used to estimate cost of equity capital?External yield criterionCapital asset pricing modelEquity capitalisation approachDividend plus growth rate2. Which of the following has the highest cost of capital?Equity sharesLoansBondsPreference shares3. Which of the following documents authorizes the purchase transaction?Credit memo from supplierPurchase orderPurchase requisitionInvoice or bill from supplier4. What is meant by accounts receivable?Money owed to a company by its employeesMoney owed to a company by its debtorsMoney owed by a company to its creditorsMoney owed by a company to its vendors5. Which method does not consider the time value of money?Profitability IndexAverage rate of returnNet present valueInternal Rate of Return6. The cost of capital method includesall of the abovegrowth in dividend methodearning yield methoddividend yield method7. The overall capitalisation rate and the cost of debt remain constant for all degrees of financial leverage is advocated byM-M ApproachTraditional ApproachNet operating Income ApproachNet Income Approach8. The assets of a business can be classified asOnly fixed assetsFixed and current assetsNone of the aboveOnly current assets9. The concept of present value is based on theBoth (a) and (b)Principle of compoundNone of the abovePrinciple of discounting10. What is customer value?Post purchase dissonanceExcess of satisfaction over expectationRatio between the customer's perceived benefits and the resources used to obtained these benefitsNone of the above11. Cost of capital from all the sources of funds is calledImplicit CostComposite costSpecific costSimple Average Cost12. Brown Glory Corp. has sales revenue of $150,000, sales discounts of $12,000, sales returns and allowances of $24,000, and cost of goods sold of $60,000. What would be the net sales revenue of Brown Glory Corp.?$102,000$90,000$114,000$54,00013. Risk in capital budgeting implies that the decision maker knows __________ of the cash flows.ProbabilityVariabilityNone of theseCertainity14. Which of the following is an item of working capital?Long-term investmentsFixed assetsBonds payableAccounts receivable15. Which of the following term is used to represent the proportionate relationship between debt and equity?Capital BudgetingCapital structureCost of capitalAssets Structure16. Two mutually exclusive projects with different economic lives can be compared on the basis ofInternal Rate of ReturnNet Present ValueProfitability IndexEquivalent Annuity value17. To which account in the Balance Sheet is the net income or net loss transferred to at the end of the accounting period?InventoryAccounts ReceivableRetained EarningsCash18. The cost of debt capital is calculated on the basis ofArumal DepreciationAnnual InterestCapitalNet proceeds19. Accounts Payable is classified as a/an ___________ in the _____________.Current asset; Balance SheetExpense; Income StatementCurrent liability; Balance SheetRevenue; Income Statement20. Cost of capital is helpful in corporative analysis of variousProductSource of MaterialSource of FinanceSource of ServicesYou've successfully completed your test. Submit below.