Financial Accounting

Financial Accounting MCQ Financial Accounting Multiple Choice Questions Financial Accounting Objective Type Questions

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Financial Accounting - Financial Accounting MCQ

16:

Arrange the following steps involved in capital budgeting in order of their occurrence

(i) Project Selection

(ii) Project appraisal

(iii) Project generation

(iv) Follow up

(v) Project execution

A.	(ii), (iii), (i), (v), (iv)
B.	(iii), (ii), (i), (v), (iv)
C.	(i), (iii), (ii), (v), (iv)
D.	(i), (ii), (iii), (v), (iv)
	Answer Report Discuss
	Option: B Explanation : Click on Discuss to view users comments. Write your comments here: Updating your Comments.. Updating your Comments..

17:

Depreciation is incorporated in cash flows because it

A.	Is unavoidable cost
B.	Is a cash flow
C.	Involves an outflow
D.	Reduces tax liability
	Answer Report Discuss
	Option: D Explanation : Click on Discuss to view users comments. Write your comments here: Updating your Comments.. Updating your Comments..

18:

Which one is more appropriate for cost of retained earning?

A.	Weighted Average cost of capital
B.	Opportunity cost to the firm
C.	Expected rate of return by the investor
D.	None of the above
	Answer Report Discuss
	Option: B Explanation : Click on Discuss to view users comments. Write your comments here: Updating your Comments.. Updating your Comments..

19:

Debt financing is a cheaper source of finance because of

A.	Time value of Money
B.	Rate of Interest
C.	Tax deductibility of Interest
D.	Dividends not payable to lenders.
	Answer Report Discuss
	Option: C Explanation : Click on Discuss to view users comments. Write your comments here: Updating your Comments.. Updating your Comments..

20:

Which of the following steps of purchase decision process is in sequence?

(i) Problem recognition

(ii) Search for alternative

(iii) Evaluation of alternative

(iv) Purchase action

(v) Post purchase action

A.	1,3,2,4,5
B.	1,2,4,3,5
C.	2,1,3,5,4
D.	1,2,3,4,5
	Answer Report Discuss
	Option: D Explanation : Click on Discuss to view users comments. Write your comments here: Updating your Comments.. Updating your Comments..

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