Finance Mcqs

Engineering MCQs CBSE MCQs

Q.  Standard Company had net sales of Rs. 750,000 over the past year. During that time, average receivables were Rs. 150,000. Assuming a 365-day year, what was the average collection period?

a. 5 days
b. 36 days
c. 48 days
d. 73 days


ANSWER: See Answer
 
The average collection period is calculated by dividing the average balance of accounts receivable by total net credit sales for the period and multiplying the quotient by the number of days in the period.
use the following formula:

(Average Receivables/Net Sales)*365

150,000/750,000*365 = 73 days

_________________________________________________

Net sales=750,000
A/C receivables= 150,000
days in a year =365

Collection period= (A/C Receivables/ net sales)*days in a year
= (150,000/750,000)*365= 73 days
MCQs:  When real rate is high, all the interest rates tend to be ___________?
Category: MBA Questions,   Published by: teswesm
MCQs:  Profitability index (PI) rule is to take an investment, if the index exceeds___________?
Category: MBA Questions,   Published by: teswesm
MCQs:  Average Accounting Return is a measure of accounting profit relative to:
Category: MBA Questions,   Published by: teswesm
MCQs:  Which of the following is the cheapest source of financing available to a firm?
Category: MBA Questions,   Published by: teswesm
MCQs:  _______________refers to the extent to which fixed-income securities (debt and preferred stock) are used in a firm’s capital structure?
Category: MBA Questions,   Published by: teswesm
MCQs:  The use of Personal borrowing to alter the degree of financial leverage is called__________?
Category: MBA Questions,   Published by: teswesm
MCQs:  _________ refers to the most valuable alternative that is given up if a particular investment is undertaken?
Category: MBA Questions,   Published by: teswesm
MCQs:  A model which makes an assumption about the future growth of dividends is known as:
Category: MBA Questions,   Published by: teswesm
MCQs:  Which of the following is not a quality of IRR ?
Category: MBA Questions,   Published by: teswesm
MCQs:  Which of the following is a series of constant cash flows that occur at the end of each period for some fixed number of periods?
Category: MBA Questions,   Published by: teswesm
MCQs:  During the accounting period, sales revenue is Rs. 25,000 and accounts receivable increases by Rs. 8,000. What will be the amount of cash received from customers for the period?
Category: MBA Questions,   Published by: teswesm
MCQs:  The conflict of interest between stockholders and management is known as:
Category: MBA Questions,   Published by: teswesm
MCQs:  Which of the following form of business organization is least regulated?
Category: MBA Questions,   Published by: teswesm
MCQs:  Which of the following ratios are intended to address the firm’s financial leverage?
Category: MBA Questions,   Published by: teswesm
MCQs:  Balance Sheet is based upon which of the following formula?
Category: MBA Questions,   Published by: teswesm
MCQs:  Quick Ratio is also known as_________?
Category: MBA Questions,   Published by: teswesm
MCQs:  Which of the following is a special case of annuity, where the stream of cash flows continues forever?
Category: MBA Questions,   Published by: teswesm
MCQs:  You just won a prize, you can either receive Rs. 1000 today or Rs. 1,050 in one year. Which option do you prefer and why if you can earn 5 percent on your money?
Category: MBA Questions,   Published by: teswesm
MCQs:  Which of the following ratios are particularly interesting to shortterm creditors?
Category: MBA Questions,   Published by: teswesm
MCQs:  In which form of Business, owners have limited liability?
Category: MBA Questions,   Published by: teswesm

Related Questions

▲