Standard Company had net sales of Rs. 750,000 over the past year. During that time, average receivables were Rs. 150,000. Assuming a 365-day year, what was the average collection period?

A: 5 days

B: 36 days

C: 48 days

D: 73 days Read More Details about this Mcq

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73 days

Which of the following terms refers to the use of debt financing?

A: Operating Leverage

B: Financial Leverage

C: Manufacturing Leverage

D: None of the given options

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Financial Leverage

In which type of market, new securities are traded?

A: Primary market

B: Secondary market

C: Tertiary market

D: None of the given options

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Primary market

Which of the following ratios are particularly interesting to short-term creditors?

A: Liquidity Ratios

B: Long-term Solvency Ratios

C: Profitability Ratios

D: Market Value Ratios

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Liquidity Ratios

Quick Ratio is also known as_______________?

A: Current Ratio

B: Acid-test Ratio

C: Cash Ratio

D: Solvency Ratio

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Acid-test Ratio

A portion of profits, which a company retains itself for further expansion, is known as:

A: Dividends

B: Retained Earnings

C: Capital Gain

D: None of the given options

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Retained Earnings

Which of the following is measured by profit margin?

A: Operating efficiency

B: Asset use efficiency

C: Financial policy

D: Dividend policy

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Operating efficiency

Which of the following set of ratios is used to assess a businesss ability to generate earnings as compared to its expenses and other relevant costs incurred during a specific period of time?

A: Liquidity Ratios

B: Leverage Ratios

C: Profitability Ratios

D: Market Value Ratios

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Profitability Ratios

A company having a current ratio of 1 will have __________ net working capital.

A: Positive

B: Negative

C: zero

D: None of the given options

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zero

Which of the following equation is known as Cash Flow (CF) identity?

A: CF from Assets = CF to Creditors “ CF to Stockholder

B: CF from Assets = CF to Stockholders “ CF to Creditors

C: CF to Stockholders = CF to Creditors + CF from Assets

D: CF from Assets = CF to Creditors + CF to Stockholder

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CF from Assets = CF to Creditors + CF to Stockholder

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