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. Cost of capital is helpful in corporative analysis of variousSource of ServicesSource of MaterialSource of FinanceProduct2. What is meant by accounts receivable?Money owed by a company to its creditorsMoney owed to a company by its debtorsMoney owed to a company by its employeesMoney owed by a company to its vendors3. Cost of capital from all the sources of funds is calledComposite costImplicit CostSpecific costSimple Average Cost4. Which method does not consider the time value of money?Net present valueInternal Rate of ReturnProfitability IndexAverage rate of return5. What is customer value?Excess of satisfaction over expectationRatio between the customer's perceived benefits and the resources used to obtained these benefitsNone of the abovePost purchase dissonance6. The assets of a business can be classified asOnly current assetsOnly fixed assetsNone of the aboveFixed and current assets7. 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.?$54,000$102,000$114,000$90,0008. Which of the following has the highest cost of capital?LoansEquity sharesPreference sharesBonds9. Accounts Payable is classified as a/an ___________ in the _____________.Expense; Income StatementCurrent asset; Balance SheetRevenue; Income StatementCurrent liability; Balance Sheet10. The cost of capital method includesall of the aboveearning yield methoddividend yield methodgrowth in dividend method11. Which of the following is an item of working capital?Accounts receivableBonds payableFixed assetsLong-term investments12. Which of the following documents authorizes the purchase transaction?Purchase requisitionInvoice or bill from supplierCredit memo from supplierPurchase order13. Risk in capital budgeting implies that the decision maker knows __________ of the cash flows.None of theseCertainityVariabilityProbability14. Two mutually exclusive projects with different economic lives can be compared on the basis ofNet Present ValueProfitability IndexEquivalent Annuity valueInternal Rate of Return15. The concept of present value is based on thePrinciple of compoundBoth (a) and (b)None of the abovePrinciple of discounting16. Which of the following term is used to represent the proportionate relationship between debt and equity?Capital BudgetingCost of capitalAssets StructureCapital structure17. Which one of the following is not used to estimate cost of equity capital?Dividend plus growth rateExternal yield criterionCapital asset pricing modelEquity capitalisation approach18. The overall capitalisation rate and the cost of debt remain constant for all degrees of financial leverage is advocated byNet operating Income ApproachTraditional ApproachNet Income ApproachM-M Approach19. To which account in the Balance Sheet is the net income or net loss transferred to at the end of the accounting period?Retained EarningsInventoryCashAccounts Receivable20. The cost of debt capital is calculated on the basis ofNet proceedsArumal DepreciationAnnual InterestCapitalYou've successfully completed your test. Submit below.