Which one of the following financial statements shows assets, liabilities, and stockholders' equity?

• A) Statement of cash flows
• B) Statement of changes in equity
• C) Balance sheet
• D) Income statement

Which of the following point will NOT be examined by the investor from the balance sheet before investing in the company?

• A) The firm’s ability to meet its financial obligations
• B) The money already being invested in this company
• C) The money the firm has spent to settle shipment costs
• D) The company being overly indebted

Which of the following formula will be used to calculate the Current Ratio?

• A) Current Assets * Current Liabilities
• B) Current Assets - Current Liabilities
• C) Current Liabilities + Current Assets
• D) Current Assets / Current Liabilities

Which of the following shows the relationship between the market yields and time to maturity?

• A) Yield curves
• B) Bezier curves
• C) Smart curves
• D) Filling curves

Current assets for the Company are Rs. 600, 000 out of which inventory is Rs. 250000,. Current liabilities of company are Rs. 295000. What will be quick ratio for the company?

• A) 1:1.18
• B) 1:2
• C) 2.5:1
• D) 1.18:1

Which of the following is the ratio of a company’s total market value (price times number of shares) divided by sales?

• A) Debt coverage ratio
• B) Leverage ratio
• C) Price to book value ratio
• D) Price to sales ratio

Which of the following is TRUE about stabilization or maturity stage?

• A) Marketplace is full of competitors
• B) Financial policies firmly established
• C) Firm operations more stable, dependable
• D) It gives you a good idea of where to think about investing

What will be earning per share if profit available for the shareholders is $ 650, 000 and company has 500,000 outstanding shares @ $10 each?

• A) 2.0 Per share
• B) 1.3 Per share
• C) 0.13 Per share
• D) 2.5 Per share

In top-down approach of fundamental analysis, investors begin their analysis with:

• A) Company
• B) Industry
• C) Economy
• D) Market

Which of the following industries tend to be composed of relatively volatile and risky stocks?

• A) Cyclical industries
• B) Growth industries
• C) Interest sensitive industries
• D) Defensive industries

Which of the following formula is used to calculate Dividend Per Share (DPS)?

• A) Dividends paid to Shareholders + Average common shares outstanding
• B) Dividends paid to Shareholders / Average common Shares outstanding
• C) None of the given options
• D) Dividends paid to Shareholders * Average common shares outstanding

Procter & Gamble is NOT affected by the recession in the economy; we will consider Procter & Gamble as:

• A) None of the given options
• B) Cyclic industry
• C) Defensive industry
• D) Interest sensitive industry

The industries that are least affected by recessions and economic adversity are referred as which of the following?

• A) Interest-sensitive industries
• B) Growth industries
• C) Cyclical industries
• D) Defensive industries

Which of the following markets is the market for investment in short-term activities?

• A) Money market
• B) Android market
• C) Capital market
• D) Target market

Which of the following is NOT in the Porter’s competitive factors?

• A) Bargaining power of buyers
• B) Changes in the economy
• C) Rivalry between existing competitors
• D) Substitute products or services

Leverage ratios are designed to:

• A) Measure a company's ability to cover its short-term obligations
• B) Measure the quality of a company's operations
• C) Measure a company's capital structure
• D) Measure the percentage of earnings paid to shareholders

What does gross margin represent?

• A) The percentage of revenue remaining after cost of goods sold.
• B) The percentage of earnings paid to shareholders.
• C) A company's capital structure.
• D) The quality of a firm's operations.

Company ABC has used 20% of its profits for paying out dividends to its shareholders, the remaining 80% income will be known as:

• A) Distributed income
• B) Gross income
• C) Retained earning
• D) Net income

Which of the following terms refer to the recurring and fluctuating levels of economic activity that an economy experiences over a long period of time?

• A) Capital cycle
• B) Business cycle
• C) Reaction cycle
• D) Claims cycle

Current assets for the Company are Rs. 600, 000. Current liabilities of company are Rs. 295000. What will be current ratio for the company?

• A) 2.03:1
• B) 2:1
• C) 1:2
• D) 1:2.03