Author name: Administrator

1338. “For the financial year ended as on March 31, 20XX the figures extracted from the balance sheet of Xerox Limited as under: Opening Stock Rs 29,000; Purchases Rs 2,42,000; Sales Rs 3,20,000; Gross Profit 25% of Sales. Stock Turnover Ratio will be” :-

8 times
6 times
9 times
10 times
✅ The correct answer is A.
Inventory turnover ratio = cost of goods sold / average inventory at cost

cost of goods sold is 25% of sales i.e
320000 * 25 % = 8000

average inventory at cost = 31000 – 29000 = 1000.

Stock turnover ratio = 8000/1000 = 8 times.

1319. An expected dividend yield is added into expected growth rate to calculate

dividend return
expected rate of return
expected capital
invested capita
✅ The correct answer is B.
An expected dividend yield is added into expected growth rate to calculate expected rate of return. The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR).

1320. In weighted average cost of capital, rising in interest rate leads to

increase in cost of debt
increase capital structure
decrease in cost of debt
decrease capital structure
✅ The correct answer is A.
In weighted average cost of capital, rising in interest rate leads to increase in cost of debt. Cost of debt is one part of a company’s capital structure, which also includes the cost of equity.

1321. _________ Deals with appointing people and placing them at the appropriate jobs.

Human resources
Recruitment
Staffing
Placement
✅ The correct answer is C.
Staffing deals with appointing people and placing them at the appropriate jobs. Staffing is the process of hiring eligible candidates in the organization or company for specific positions. In management, the meaning of staffing is an operation of recruiting the employees by evaluating their skills, knowledge and then offering them specific job roles accordingly.

1323. Which of the below statement is incorrect with regards to a policy against which a loan has been taken from the insurance company?

The policy will have to be assigned in favour of the insurance company
The nomination of such policy will get cancelled due to assignment of the policy in favour of the insurance company
The nominee’s right will be affected to the extent of the insurer’s interest in the policy
The policy loan is usually limited to a percentage of the policy’s surrender value
✅ The correct answer is B.
The nomination of such policy will get cancelled due to assignment of the policy in favour of the insurance company is incorrect with regards to a policy against which a loan has been taken from the insurance company.

1324. Learning curve models include

cumulative average time learning model
incremental unit time learning model
incremental production learning model
both a and b
✅ The correct answer is D.
Learning curve models include cumulative average time learning model and incremental unit time learning model.

1326. In expected rate of return for constant growth, an expected yield on capital must be

equal to zero
greater than expected growth rate
less than expected growth rate
equal to expected growth rate
✅ The correct answer is D.
In expected rate of return for constant growth, an expected yield on capital must be equal to expected growth rate. Growth rates typically represent the compounded annualized rate of growth of a company’s revenues, earnings, dividends or even macro concepts, such as gross domestic product (GDP) and retail sales. Expected forward-looking or trailing growth rates are two common kinds of growth rates used for analysis.

1330. Money market funds were a financial innovation partly inspired to circumvent __________.

Regulation Q, which is no longer in existence
Regulation M
Regulation D
Regulation B, which is still in existence
✅ The correct answer is A.
Money market funds were a financial innovation partly inspired to circumvent Regulation Q, which is no longer in existence. A money market fund is a kind of mutual fund that invests only in highly liquid instruments such as cash, cash equivalent securities, and high credit rating debt-based securities with a short-term, maturity less than 13 months. As a result, these funds offer high liquidity with a very low level of risk.
Scroll to Top