Top 150+ Solved Cash Flow MCQ Questions Answer
Q. If nominal rate of return is 10% per annum and annual effective rate of interest is10.25% per annum, determine the frequency of compounding:
a. 1
b. 2
c. 3
d. None of the above
Q. Present value tables for annuity cannot be straight away applied to varied stream ofcash flows.
a. True
b. False
c. none
d. all
Q. Heterogeneous cash flows can be made comparable by
a. Discounting technique
b. Compounding technique
c. Either a or b
d. None of the above
Q. The term marginal cost can be used as a substitute of variable cost while measuringContribution.
a. True
b. False
c. none
d. all
Q. Determine total as well as per unit contribution if Sales is Rs 40,000, Sales in units is4,000 and variable cost is Rs 30,000.
a. Rs 10,000 and Rs 2.5
b. Rs 70,000 and Rs 3.5
c. Rs 36,000 and Rs 3.6
d. None of the above
Q. Determine Contribution if Sales is Rs 1,50,000 and P/V ratio is 40%.
a. Rs 60,000
b. Rs 70,000
c. Rs 30,000
d. None of the above
Q. Determine Contribution if Fixed cost is Rs 40,000 and profit is Rs 30,000.
a. Rs 60,000
b. Rs 70,000
c. Rs 30,000
d. None of the above
Q. Determine Contribution if Fixed cost is Rs 50,000 and loss is Rs 20,000.
a. Rs 60,000
b. Rs 70,000
c. Rs 30,000
d. None of the above
Q. Which of the following statements are true?
a. Contribution doesn’t include fixed cost whereas profit includes fixed cost.
b. Contribution is not based on the concept of marginal cost.
c. Contribution above breakeven point becomes profit.
d. All of the above
Q. Profit-Volume ratio is also known as
a. Contribution ratio
b. Contribution/Sales ratio
c. Marginal Income percentage
d. All of the above
Q. Which of the following statements are true?
a. P/V Ratio can never be used to measure break-even point
b. Higher the P/V ratio less will be the profit and vice versa
c. Concept of P/V ratio is also used to determine profit at a given volume of sales
d. All of the above
Q. The P/V ratio can be improved by
a. Decreasing the selling price per unit
b. Increasing variable cost
c. Changing the sales mix
d. None of the above
Q. The Break-even Point of a company is that level of sales income which will equal thesum of its fixed cost.
a. True
b. False
c. none
d. all
Q. Which of the following are characteristics of B.E.P?
a. There is no loss and no profit to the firm.
b. Total revenue is equal to total cost.
c. Contribution is equal to fixed cost.
d. All of the above.