Business Finance - Practice Test

(A) The cost of retained earnings is always less than the cost of external equity

(B) The cost of external equity is always less than the cost of retained earnings

(C) The cost of retained earnings is power than the cost of external equity in presence of floatation costs

(D) None of the above

(C) The cost of retained earnings is power than the cost of external equity in presence of floatation costs

(A) 4, 3, 1, 5, 2

(B) 1, 2, 3, 4, 5

(C) 1, 5, 2, 3, 4

(D) 4, 1, 2, 3, 5

(D) 4, 1, 2, 3, 5

(A) The cost of work-in-progress includes raw materials, wages and factory overheads

(B) Cost of finished goods is estimated at profit amount

(C) Delay in payment of certain expenses provides long-term financing of working capital

(D) None of the above

(A) The cost of work-in-progress includes raw materials, wages and factory overheads

(A) It is cancellable

(B) The legal title to the asset is with the lessee

(C) The asset is capitalized in the balance sheet of the lessee

(D) The lessor is responsible for service and maintenance of the asset

(C) The asset is capitalized in the balance sheet of the lessee

(A) The fixed cost of the organization

(B) The effectiverate of interest

(C) The facevalue of the bond

(D) It reflects the rating by the credit rating agency

(B) The effectiverate of interest

Business Finance - Study Mode