14/10/2019 Tutor Test (Accounts) 14/10/2019 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 of the following term is used to represent the proportionate relationship between debt and equity? Capital structure Assets Structure Cost of capital Capital Budgeting 2. What is meant by accounts receivable? Money owed to a company by its employees Money owed by a company to its vendors Money owed to a company by its debtors Money owed by a company to its creditors 3. Risk in capital budgeting implies that the decision maker knows __________ of the cash flows. None of these Probability Certainity Variability 4. Which of the following documents authorizes the purchase transaction? Purchase order Purchase requisition Credit memo from supplier Invoice or bill from supplier 5. 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 $54,000 6. Which method does not consider the time value of money? Internal Rate of Return Profitability Index Average rate of return Net present value 7. Accounts Payable is classified as a/an ___________ in the _____________. Current liability; Balance Sheet Expense; Income Statement Revenue; Income Statement Current asset; Balance Sheet 8. To which account in the Balance Sheet is the net income or net loss transferred to at the end of the accounting period? Cash Retained Earnings Accounts Receivable Inventory 9. The cost of debt capital is calculated on the basis of Net proceeds Arumal Depreciation Annual Interest Capital 10. The overall capitalisation rate and the cost of debt remain constant for all degrees of financial leverage is advocated by Traditional Approach Net operating Income Approach M-M Approach Net Income Approach 11. Which of the following has the highest cost of capital? Preference shares Equity shares Loans Bonds 12. Cost of capital is helpful in corporative analysis of various Source of Services Source of Finance Product Source of Material 13. Cost of capital from all the sources of funds is called Simple Average Cost Specific cost Composite cost Implicit Cost 14. Which one of the following is not used to estimate cost of equity capital? Equity capitalisation approach Dividend plus growth rate Capital asset pricing model External yield criterion 15. The concept of present value is based on the Principle of discounting None of the above Principle of compound Both (a) and (b) 16. What is customer value? None of the above Excess of satisfaction over expectation Ratio between the customer's perceived benefits and the resources used to obtained these benefits Post purchase dissonance 17. Two mutually exclusive projects with different economic lives can be compared on the basis of Internal Rate of Return Equivalent Annuity value Net Present Value Profitability Index 18. The assets of a business can be classified as Only current assets Only fixed assets None of the above Fixed and current assets 19. Which of the following is an item of working capital? Fixed assets Long-term investments Bonds payable Accounts receivable 20. The cost of capital method includes growth in dividend method all of the above dividend yield method earning yield method You've successfully completed your test. Submit below.
