29. Information about an item is _______ if its ommission or misstatement might influence the financial decision of the users taken on the basis of that information

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A) Concrete
B) Complete
C) Immaterial
D) Material
✅ ANSWER: D
Materiality is a concept in financial accounting and reporting that firms may disregard trivial matters, but they must disclose everything that is important to the report audience. Items that are important enough to matter are material items.

271. An average return of portfolio divided by its coefficient of beta is classified as

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A) Sharpe’s reward to variability ratio
B) treynor’s reward to volatility ratio
C) Jensen’s alpha
D) treynor’s variance to volatility ratio
✅ ANSWER: B
An average return of portfolio divided by its coefficient of beta is classified as treynor’s reward to volatility ratio. The Treynor ratio, also known as the reward-to-volatility ratio, is a performance metric for determining how much excess return was generated for each unit of risk taken on by a portfolio.

269. Re-order level is calculated as:

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A) Maximum consumption x Maximum re-order period
B) Minimum consumption x Minimum re-order period
C) 1/2 of (Minimum + Maximum consumption)
D) Maximum level – Minimum level
✅ ANSWER: A
Re-order level is calculated as Maximum consumption x Maximum re-order period. To calculate the reorder level, multiply the average daily usage rate by the lead time in days for an inventory item.

267. Standard deviation is divided by expected rate of return is used to calculate

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A) coefficient of variation
B) coefficient of deviation
C) coefficient of standard
D) coefficient of return
✅ ANSWER: A
Standard deviation is divided by expected rate of return is used to calculate coefficient of variation. The coefficient of variation (CV) is a statistical measure of the dispersion of data points in a data series around the mean.

265. Traditional theorists believe that.

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A) there exists an optimal capital structure
B) no optimal capital structure
C) equal optimal capital structure
D) 100% debt financial organizations
✅ ANSWER: A
Traditional theorists believe that there exists an optimal capital structure. An optimal capital structure is the objectively best mix of debt, preferred stock, and common stock that maximizes a company’s market value while minimizing its cost of capital.