Time Value of Money and Net Working Capital Quiz

22 Questions

What does ERP stand for?

Enterprise Resources Planning

What is the purpose of an invoice memo?

All of the above

What is TVM an abbreviation for?

None of the above

What is another name for Absorption Costing?

Variable Costing

What is the document used for pay details?

Pay Slip

If the nominal rate of interest is 10% per annum with quarterly compounding, what will be the effective rate of interest?

10.38% per annum

What is the long run objective of financial management?

Maximize The Value Of The Firm Equity Shares

What is the correct definition of an annuity?

A series of equal consecutive payments

What does EPS stand for in financial management?

Earnings Per Share

Which statement is prepared in the process of funds flow analysis?

Statement of Changes in Financial Position

What does the time value of money support in comparing cash flows at different time periods?

Using either a or b

In financial management, what is the significance of minimizing market share?

Reduces competitive advantage

What does net working capital represent?

Current assets minus current liabilities

How is contribution margin defined?

S - V

Which of the following is an example of fixed assets?

Plant and machinery

When is a firm said to attain the Breakeven Point (BEP)?

Total Revenue (TR) = Total Costs (TC)

What is another name for Marginal Costing?

Both a and b

How is material price variance calculated?

(Actual Quantity)*(Standard Price - Actual Price)

If Sales is Rs 40,000, Sales in units is 4,000, and variable cost is Rs 30,000, what are the total and per unit contribution?

Rs 70,000 and Rs 3.5

What does Cash budget refer to?

Receipts and Payments of cash

What is another name for Profit-Volume ratio?