14/10/2019Tutor 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 debt capital is calculated on the basis ofAnnual InterestCapitalArumal DepreciationNet proceeds2. Risk in capital budgeting implies that the decision maker knows __________ of the cash flows.ProbabilityVariabilityCertainityNone of these3. Accounts Payable is classified as a/an ___________ in the _____________.Revenue; Income StatementCurrent liability; Balance SheetCurrent asset; Balance SheetExpense; Income Statement4. Which method does not consider the time value of money?Internal Rate of ReturnNet present valueAverage rate of returnProfitability Index5. What is meant by accounts receivable?Money owed by a company to its creditorsMoney owed by a company to its vendorsMoney owed to a company by its employeesMoney owed to a company by its debtors6. Cost of capital from all the sources of funds is calledImplicit CostSimple Average CostComposite costSpecific cost7. The cost of capital method includesearning yield methodgrowth in dividend methodall of the abovedividend yield method8. Which of the following documents authorizes the purchase transaction?Credit memo from supplierPurchase requisitionInvoice or bill from supplierPurchase order9. Which of the following is an item of working capital?Long-term investmentsFixed assetsAccounts receivableBonds payable10. What is customer value?Ratio between the customer's perceived benefits and the resources used to obtained these benefitsExcess of satisfaction over expectationPost purchase dissonanceNone of the above11. 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.?$90,000$114,000$102,000$54,00012. The concept of present value is based on thePrinciple of compoundBoth (a) and (b)None of the abovePrinciple of discounting13. The assets of a business can be classified asFixed and current assetsNone of the aboveOnly current assetsOnly fixed assets14. Which of the following has the highest cost of capital?LoansEquity sharesBondsPreference shares15. The overall capitalisation rate and the cost of debt remain constant for all degrees of financial leverage is advocated byTraditional ApproachM-M ApproachNet Income ApproachNet operating Income Approach16. Cost of capital is helpful in corporative analysis of variousSource of FinanceProductSource of MaterialSource of Services17. Which of the following term is used to represent the proportionate relationship between debt and equity?Capital structureCapital BudgetingCost of capitalAssets Structure18. Two mutually exclusive projects with different economic lives can be compared on the basis ofNet Present ValueEquivalent Annuity valueProfitability IndexInternal Rate of Return19. Which one of the following is not used to estimate cost of equity capital?External yield criterionCapital asset pricing modelEquity capitalisation approachDividend plus growth rate20. To which account in the Balance Sheet is the net income or net loss transferred to at the end of the accounting period?CashRetained EarningsAccounts ReceivableInventoryYou've successfully completed your test.Submit below.