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. The cost of capital method includesall of the abovedividend yield methodearning yield methodgrowth in dividend method2. Cost of capital from all the sources of funds is calledImplicit CostComposite costSimple Average CostSpecific cost3. The overall capitalisation rate and the cost of debt remain constant for all degrees of financial leverage is advocated byM-M ApproachNet operating Income ApproachTraditional ApproachNet Income Approach4. Which of the following has the highest cost of capital?LoansBondsEquity sharesPreference shares5. The cost of debt capital is calculated on the basis ofArumal DepreciationCapitalNet proceedsAnnual Interest6. Which of the following term is used to represent the proportionate relationship between debt and equity?Capital BudgetingCost of capitalAssets StructureCapital structure7. Two mutually exclusive projects with different economic lives can be compared on the basis ofEquivalent Annuity valueProfitability IndexInternal Rate of ReturnNet Present Value8. Which of the following is an item of working capital?Accounts receivableFixed assetsLong-term investmentsBonds payable9. To which account in the Balance Sheet is the net income or net loss transferred to at the end of the accounting period?CashRetained EarningsInventoryAccounts Receivable10. Cost of capital is helpful in corporative analysis of variousSource of MaterialProductSource of ServicesSource of Finance11. 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$114,000$90,000$54,00012. The assets of a business can be classified asOnly fixed assetsFixed and current assetsOnly current assetsNone of the above13. The concept of present value is based on theBoth (a) and (b)Principle of discountingPrinciple of compoundNone of the above14. Accounts Payable is classified as a/an ___________ in the _____________.Revenue; Income StatementCurrent liability; Balance SheetExpense; Income StatementCurrent asset; Balance Sheet15. What is customer value?None of the aboveRatio between the customer's perceived benefits and the resources used to obtained these benefitsExcess of satisfaction over expectationPost purchase dissonance16. Which of the following documents authorizes the purchase transaction?Purchase orderCredit memo from supplierInvoice or bill from supplierPurchase requisition17. Which one of the following is not used to estimate cost of equity capital?Capital asset pricing modelEquity capitalisation approachDividend plus growth rateExternal yield criterion18. Which method does not consider the time value of money?Net present valueInternal Rate of ReturnProfitability IndexAverage rate of return19. What is meant by accounts receivable?Money owed to a company by its debtorsMoney owed by a company to its creditorsMoney owed by a company to its vendorsMoney owed to a company by its employees20. Risk in capital budgeting implies that the decision maker knows __________ of the cash flows.ProbabilityNone of theseVariabilityCertainityYou've successfully completed your test. Submit below.