Question 1

At the top of the balance sheet there is a three-line heading that includes name of the organization,

name ff statement and

Options :

A : One date

B : Two dates

C : Three dates

D : none of the above

Answer: B

Question 2

The formula to calculate the present value of an amount to be received in the future is:

Options :

A : PV = FV – [1 + (1+n) i]

B : PV = FV + [1 + (1-n) n]

C : PV = FV * [1 / (1+i) n]

D : PV = FV / [1 / (1-n) i]

Answer: C

Question 3

Operating income divided by total operating revenues measures:

Options :

A : Net operating value

B : Operating margin ratio

C : Gross operating ratio

D : Subsequent operating ratio

Answer: B

Question 4

The point where total revenues equal total costs is called:

Options :

A : Cope point

B : Break-even point

C : Get-by point

D : Equivalent point

Answer: B

Question 5

The rate of return required undertaking a project; the cost of capital accounts for both the time value of money and risk refers to:

Options :

A : Cost of return

B : Cost of capital

C : Cost of risk

D : Cost of revenue

Answer: B