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Financial management Practice Questions & Answers

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Until word of preferred is used, an equity in balance sheet is treated as

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Until word of preferred is used, an equity in balance sheet is treated as

A).  common equity

B).  preferred equity

C).  due equity

D).  common perpetuity

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An earning before interest, taxes, depreciation and amortization are calculated by

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An earning before interest, taxes, depreciation and amortization are calculated by

A).  subtracting operating cost from net sales

B).  subtracting net sales from operating costs

C).  adding operating cost and net sales

D).  adding interest and taxes

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Payment if it is divided with interest rate will be formula of

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Payment if it is divided with interest rate will be formula of

A).  future value of perpetuity

B).  present value of perpetuity

C).  due perpetuity

D).  deferred perpetuity

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Future value of interest if it is calculated two times a year can be a classified as

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Future value of interest if it is calculated two times a year can be a classified as

A).  semi-annual discounting

B).  annual discounting

C).  annual compounding

D).  semi-annual compounding

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Dividends paid to common shareholders and divided by common shares outstanding are equals to

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Dividends paid to common shareholders and divided by common shares outstanding are equals to

A).  earning per share

B).  dividends per share

C).  book value of share

D).  market value of shares