Time Value of Money and Net Working Capital Quiz
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Questions and Answers

What does ERP stand for?

  • Economic Resource Planning
  • Excess Resources Planning
  • Enterprise Resources Planning (correct)
  • None of the above

    • What is the purpose of an invoice memo?

  • Credit items
  • Cash items
  • Net items
  • All of the above (correct)

    • What is TVM an abbreviation for?

  • Time Value Management
  • Total Variable Margin
  • Treasury Value Model
  • None of the above (correct)

    • What is another name for Absorption Costing?

    <p>Variable Costing (B)</p> Signup and view all the answers

    What is the document used for pay details?

    <p>Pay Slip (B)</p> Signup and view all the answers

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

    <p>10.38% per annum (D)</p> Signup and view all the answers

    What is the long run objective of financial management?

    <p>Maximize The Value Of The Firm Equity Shares (A)</p> Signup and view all the answers

    What is the correct definition of an annuity?

    <p>A series of equal consecutive payments (B)</p> Signup and view all the answers

    What does EPS stand for in financial management?

    <p>Earnings Per Share (D)</p> Signup and view all the answers

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

    <p>Statement of Changes in Financial Position (A)</p> Signup and view all the answers

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

    <p>Using either a or b (C)</p> Signup and view all the answers

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

    <p>Reduces competitive advantage (D)</p> Signup and view all the answers

    What does net working capital represent?

    <p>Current assets minus current liabilities (B)</p> Signup and view all the answers

    How is contribution margin defined?

    <p>S - V (D)</p> Signup and view all the answers

    Which of the following is an example of fixed assets?

    <p>Plant and machinery (C)</p> Signup and view all the answers

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

    <p>Total Revenue (TR) = Total Costs (TC) (D)</p> Signup and view all the answers

    What is another name for Marginal Costing?

    <p>Both a and b (C)</p> Signup and view all the answers

    How is material price variance calculated?

    <p>(Actual Quantity)*(Standard Price - Actual Price) (A)</p> Signup and view all the answers

    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?

    <p>Rs 70,000 and Rs 3.5 (B)</p> Signup and view all the answers

    What does Cash budget refer to?

    <p>Receipts and Payments of cash (C)</p> Signup and view all the answers

    What is another name for Profit-Volume ratio?

    <p>All of the above (D)</p> Signup and view all the answers

    What is computerized accounting?

    <p>Accounting software (B)</p> Signup and view all the answers

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